Letter of Credit Forum

Hi all,

I have query. 

We are producer of sugar with a crushing season starts on 15 Oct. However, to run our factory we have imported some critical items from South African Company to be errected before starting date, the goods were shipped in two containers as per schedule and the docs arrived at time and paid for. We have realized that the goods were transhipped at xxx port (a very congested port with poor facilities) and remained there for almost one month. After many correspondence the shipping line agreed to move the goods to be transhipped again at xxx port and till now the goods not reached the final destination.

The opportunity cost measured by approx $6,000,000  

UCP600 gives the shipper the right, in case of using containers, to tranship even if the L/C prohibited transhipment.

The supplier responsibility ends on F.O.B.

Please offer your comments.

Regards

Ghubshawi