Container document presentation after cargo arrival at the destination port.

Our experts answer your questions and provide insights into common contract issues arising in trade execution.

The questions & answer are generic. You should always refer to your contract(s) if similar issues arise in your day to day activities.

QUESTION

Cargo documents are being presented to our buyer after the cargo ETA at destination. The buyer intends to claim for lost days free time under the booking, and for port storage charges imposed by the port authorities. Are we responsible for these, and what are our obligations for document presentation?

ANSWER

In international trade it is common though not desirable, for documents to be presented to the receiver after cargo arrival. This can arise due to many intermediaries in the contract string or short voyages. As a seller the general obligation is to forward documents to your buyer without undue delay, typically considered within 2 working days of receipt.

Unless your contract specifies otherwise, and you haven't delayed the presentation unnecessarily, the buyer has no reasonable grounds for a contractual claim. Your obligation is to provide a booking with destination free time as per contract, not to ensure its full availability to be utilised by the receiver.

Port storage charges are imposed by destination authorities. As such, they are for the buyer’s account. Ideally your contract should be explicit on destination charges for the buyer account.