Letter of Credit Forum

Dear Ghubshawi,

you have my sympathy!

But in my eyes, it's not your problem or that of your clients, but of the forwarder (and may be also of your suppleirs and of his sub-contractor):

1) The freight charges were paid by debiting an open account
of the mfr with the FW. So the FW gave a credit to the
Mfr.

2) The FW confirmed on his B/L that freight charges were
prepaid. Therefore, no claim can be made by him as he has
confirmed in writing that his freight charges were paid.

If all other parties have effected the relative payments, the money for his freight charges is now with the mfr in bankruptcy.

3) The Original Liner B/L was endorsed and handed out to
you. This also means that the discrepancy "forwarder
B/L" was liftend and docs taken up in spite of
discrepancies. Why didn't you collect the goods with the
liner B/L?

4) As under 2): No claim, no lien!

5) His asking for a return of the B/L for "corrections" and
then asking for a compensation for his own incapability to
handle credits is unbelievable. In my eyes its a fraud or
theft, as charges under the FW B/L have no meaning under
the liner B/L.

6) The FW didn't inform you about the bankruptcy of the Mfr.
but beneficiaries or his sub contractor. That's why they
knew about it and told you.

According to the contract and as stated in the credit the
delivery term is CFR ...(port of discharge).... Therefore,
the beneficiary and then the sub-contractor are liable for
any payment of freight charges until the port of discharge.

You asked us to consider these points:

1- Sale contract held the supplier resposible till the delivery is completed.
------Sounds more like DDU instead of CFR. This would even
------improve your situation.

2- Our L/C prohibted the presentation of forwarder B/L.
------But you have taken up the discrepancy and/or omitted
------to give a timely refusal?!!

3- The above liner B/L is not acceptable according to Incoterm 2000.

------See under 2)

4- The FW B/L gives the FW the right to exercise Lien on cargo.

------But you have also received the Liner B/L in exchange
------and there is no claim to support the lien!

5- both B/L shows the freight PREPAID.
------Good!

6- Liner B/L was not presented through the banking syestem
as stipulated in L/C.

------See under 2)

7- Liner B/L was indorsed to our goodself.

------With this the FW has entitled you to collect the goods.

8- Our supplier claimed that the resposipility was transferred to us
since Liner B/L ENDORSED, however, the shipping line requested us to
obtain the agreement of the shipper i.e FW and consignee i.e his agent
- after we have handed the original liner B/L - in order to release the
goods.

-------I can't understand this as an endorsed B/L is all that is
-------needed for the delivery of the goods. As far as I
-------understand the case the liner was indeed paid even if
------- - after two months - it appears the FW was not.

The argument of the supplier is not correct. He is responsible for the costs until the goods reach the port of discharge and obviously these are the charges in question.

So what has happened with the goods in more than two months? Must be an awful lot of money for demurrage?!

And has anyone asked for the damage caused to the vessel?

-Each long journey starts with a small step-

Best regards

Frammi