Missing the Original Bill of Lading (B/L) – What Now? ????
A few months ago, one of my clients faced a situation that is every shipper's nightmare-the original Bill of Lading was lost.
The cargo had arrived at its destination, but without the original B/L, the goods couldn't be released. Herein is what we did to resolve it, and what you should do if this ever happens to you.
The Situation:-
Our client was shipping cargo to Europe, and upon arrival, he found the original B/L missing. The delay in the release of cargo created lots of headache and probably losses. We were, hence able to intervene on time.
How did we tackle it:-
# We immediately notified the shipping line, the consignee, and the client's bank. Speedy communication is important in such scenarios to avoid the release of cargo to unauthenticated persons.
# We worked with the consignee in issuing an #LETTEROFINDEMNITY (LOI) collated with a bank guarantee. This would give confidence to the carrier that they would be covered in case of any claim for the missing B/L.
The shipping line requested a financial bank guarantee for 150% of the value of the cargo. This falls within normal practice in securing the carriers against legal implications of liability when such an original B/L shows up later in other people's possession.
# Filing the court order for the release of the cargo would have been the follow-through action if the LOI or guarantee did not work. Fortunately, we were able to resolve the problem well before it reached that point.
TAKE AWAY'S:
- When the original B/L is lost, time is of the essence. Immediate notification of all parties can prevent further delays.
- The ability to issue a Letter of Indemnity supported by a bank guarantee can often resolve what might otherwise be a protracted problem.
- Consider #eB/L. Whenever possible we now recommend clients use an electronic Bill of Lading to avoid the risks associated with losing the physical document.
The cargo was released later that day, and the client did not have to suffer from the loss of costly delays and legal hassles.
If you find yourself in such a situation, never panic-just take quick action and lean on experts who will guide you through it.
#Shipping #Logistics #BillOfLading #RealLife #CargoRelease #MaritimeLaw #RiskManagement #SupplyChain #Freight
Managing Director @ PHAN FRESH ENTERPRISE Seasonal Banker and Accountant Equity Bank LTD and I&M Bank LTD
3moAn insight I need against the shipping line....Consignee refused to accept the container as the shipping line never delivered within the provided Transit Time at day of booking and actually cargo took more that 50+ day on top of 30 days given on booking confirmation. As a shipper can I sue for negligence and seek damages. The goods onboard is fresh produce which has shelf life of 40 days