On 20 March 2009, Mrs. Devias, a company from China, signed a contract with an Australian supplier to buy wool. See details of the contract below:

Product: Australian Wool
Wool Type: T56F NF
Price: US$314/kg
Cost and Freight: Zhangjiagang CNF
Payment Method: Letter of Credit
Shipment Period: June 2009

On 31 May 2009, the Letter of Credit was approved. The Australian company sent a fax to Mrs. Devias stating that the shipment was made on 9 July 2009 and was due to arrive at Zhangjiagang by 10 August 2009.

On 18 August 2009, representatives from Mrs. Devias went to the port of Zhangjiagang to pick up the shipment. They were shocked to find out that their goods were not a part of the appointed carrier ship's cargo. After days of investigation, they discovered that the shipment has arrived much earlier (20 July) on another ship. However, they still can't locate the shipment.

They finally discovered the shipment on 8 September 2009. Because of the delay, Mrs. Devias was fined RMB16,000 by the Chinese Customs. Upon further inspection, they found the wool to be of inferior quality and in lesser quantity than originally ordered. Mrs. Devias had no choice but to make a refund request.

Question:

Who do you think is responsible for the shipping problems?

Who do you think should pay the RMB16,000 fine?

The seller should advise the buyer the exact shipping time and shipping vessel.

 

I think the seller and the shipper shoud toe the scratch,they do not do a good communication with the buyer,no date confirmation,no note of arrival by the shipper and seller,and no positive to make a good deal.
such a seller just do a one time business,if recognized about this, there is no oppotunity to give them the one time.

The shipper's representing shipping agent should be the person who make the problem. Either air freight or sea freight there will have a Bill of Lading or Air Way Bill show once the cargo summit to port. Then the shipping agent will send the pre-alert BL or AWB attached with invoice and packing list to the destination handling agent to note that there is the shipment coming in, what is the cargo and when the shipment arrive. So consignee shipping agent can clear custom on time and will not be charge so high for warehouse storage.

The fined is depend on shipper bare it or the shipper's agent to bare because they make the mistake, did not inform buyer or buyer's agent when is the shipment will reach.

I wanna know how to soulve this problem too,because I"m a new comer on international trade.so many toubles haven't toubled me yet. by now,so everyday I'm online searching my toubles,just reading to soulve the problems.Gain experience from the business is much relieable and more useful than learn from books.

All the newers,don't just fall in love with the buying leadings,we are reading to fall in love with touble also.

  PP WOVEN BAGS

Oneuni wrote:
Who do you think is responsible for the shipping problems?

In general case this is called as Demurage/penalty charges of late in-clearance. so the free time period of stowing the container in port had exceeding against the grace period or free day allowance that applied in the port by port authority and or CY authority.                                                                                                                                                                                                        The very substantial instrument of this case is"Notice Arrival' or Shipment Arrival notice or Shipping Advise of arrival that MUST be provided by Carrier/Shipping line/agent at destination port to C/nee or buyer.(Mrs Devias/her company) as stated in the Carrier Ocean B/L,(master B/L)
If the shipping office/agent did not send the Pre-Advise or Notice Arrival, Definitely the responsible for the penalty must be on the shipping agent.
Unless if the Notice-arrival message had been done and confirmed to Ms Devias and somehow she or her company not pay attention or care with it, than it will be Ms Devias(C/nee) fault/responsibility.

                              

continued on pg 2  .>

It is so strange, many false been made. especially in the L/C's terms is Shipment Period: June 2009    

1.How come Ms Devias keep accept to let the shipper/Supplier doing the shipment on July -as per fax of :
The Australian company sent a fax to Mrs.Devias stating that the shipment was made on 9 July 2009 and was due to arrive at Zhangjiagang by 10 August 2009.? 
This is absolutely a DISCREPANCY of L/C !? an amendment or revision must be applied to Bank.  If not the negotiating bank from the supplier will refuse the document ( B/L and other export document), because latest shipment date already over due.             
by this case the bank will ask the supplier to contact Ms Devias to apply correction in the L/C by extended: latest shipment date in the L/C. Prior this the Nego/collect bank will ask an advise to issuing and paying bank weather to accept this or refused the export document and not collect the payment.       

2. Also another scene is missing here in the L/C terms, it is about the latest date of document presentation  
that normally instruct like this:  document must be presented with in ..?.. days after On board dated in B/L   after checking all the documents it will be send by Air courier to paying bank, which next will advise to Ms Devias/coy to check and approved it before the bank will pay the L/C as invoiced or billed.
And normally this sequence or period is absolutely before ship arrival date !  Meaning that no way Ms Devias will loss of trace for the container, as she immediately find out base on what the B/L contents, name of Vessel, Voy Nbr, ETD and ETA, POD , POL and delivery place or end destination of the container also the contact office of shipping agent whereas she could claim the container(taking D/O) and do the custom clearance.       
what ever and does not matter how and when the shipper did the loading on board. Ms Devias must only stick on what the B/L tenor especially the Clean On Board date and the shipping details in the B/L.          
Indeed if other than what supposed to as per said in the B/L,  This is shipping coy false/responsibility,       

continue to pg 3 , who pay the penalty ?