Incorrect cargo in container – who is responsible..??
This is the gist of the question below from Bukky..
Container arrived,sealed Cleared customs in Houston, TX. Pick up the same for delivery by a trucking company to the buyer warehouse. Container unsealed, inside the container was bags full of cement/unknown stuffs instead of cooking oil. Who is responsible for the missing oil. the shipper(NVOCC) OR THE CARRIER (MSC) OR CAN MARINE INSURANCE BE CLAIM? CIF shipping. Clean bill of lading
Bukky, if this is true, it is clear that the seller has taken the buyer for a big ride.. This is completely the responsibility of the seller who has contracted to sell and deliver XYZ cargo to the buyer and has failed to do so.. This has nothing to do with the NVOCC operator or the Shipping Line..
Several buyers use several methods to safeguard their purchases, chief among which would be the proper insurance cover for the cargo..
If you look at what ICC says regarding CIF terms,
‘The seller also contracts for insurance cover against the buyer’s risk of loss of or damage to the goods during the carriage. The buyer should note that under CIF the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements.”
In this case, if the cargo has been properly and additionally insured, then the buyer should be able to seek redress through the insurance company..
While there should be a certain amount of trust involved in first time transactions based on the credibility check on the seller, market presence, reputation in the market etc, where such dealings take place between the buyer and seller for the first time or if the buyer has even a little bit of doubt , it would be prudent practice on the part of the buyer to employ the services of a surveyor or inspection agency at the port of load to be present at the time of packing of the container till it is sealed..
That way the buyer can establish that he is receiving what he paid for and bought..
Also read a similar article that I wrote previously based on a scenario from a reader..
If anyone has any other opinions, please do share..