Letter of Credit Forum

Hello Expvge
[I think you may have had a better response from other posters if you had posted this on the general forum.]

If the consignee had NOT yet taken RELEASE of the containers, I would say that you (as shipper) were exposed: the carrier would be correct in holding you liable for container storage or demurrage. Until such time as the consignee steps forward, the shipper alone is the carrier’s client.

However, once the carrier releases to the consignee, then they take the consignee as a second client, jointly liable with you for all charges and risks up to release but liable in their own name after release. It is not necessarily ‘clearance’ which will trigger this, but physical ‘release’. (The ‘importer’ clears, but the ‘consignee’ seeks release. Under normal conditions the carrier has no interest in the importer, only the consignee).

So, I would say that you may repudiate the carrier’s claim against you: but be careful. The devil is in the detail and each carrier is entitled to operate much of their contract independently. What I mean by this is that you may well have accepted this liability though some action or clause which, although not common to all carriers, may still apply in this instance. I suspect, rather, that they are just bluffing: they release at their own risk and are entitled to take such indemnity as they require from the consignee. If they waive this opportunity, they cannot make you liable for their omission.

As a precaution, I would place the buyer on formal notice. As a seller under CFR Incoterms Rules, this is the buyer’s risk and although Incoterms will not help you in your relationship with the carrier, it will give you rights against the buyer if, as shipper, it turns out you do have a liability.

So, whatever the carrier sends to you, you send to the buyer – and keep everything in writing!

I wish you well with this

Cheers

phill
“...in the kingdom of the blind; what you see is what you get...”