Abandoned Cargo: Prevention and Solution

While it may not make headlines, the issue of uncleared cargo can be as disruptive to logistics as port congestion or the Houthis attacks. Uncleared cargo, also known as abandoned or unclaimed cargo, exacerbates supply chain disruptions but receives less media attention because it’s an everyday challenge for nearly every forwarder worldwide.

While it may not make headlines, the issue of uncleared cargo can be as disruptive to logistics as port congestion or the Houthis attacks. Uncleared cargo, also known as abandoned or unclaimed cargo, exacerbates supply chain disruptions but receives less media attention because it’s an everyday challenge for nearly every forwarder worldwide.

 

Take the Apapa Port in Nigeria, for example. In May, the number of overdue containers there reached nearly 5,000 units. Some have been sitting there for years! Think about the space they occupy, the mounting storage and demurrage charges, and the condition of the goods inside after all that time.

 

As a cargo owner or forwarder, it’s crucial to prevent your containers from becoming overstayed or abandoned. This post will help you spot the problem early and provide a solution if your cargo does become unclaimed. But first, let’s define abandoned cargo.

 

What is Abandoned Cargo?

 

The Federation of Freight Forwarders Association (FIATA) defines abandoned cargo as “cargo which the consignee (importer) has shown no intention of taking delivery of after a reasonable period.”

 

This “reasonable period” varies by country but typically falls between 30 and 90 days. After that, authorities can sell the cargo at auction or dispose of it, though this usually doesn’t happen immediately.

 

According to maritime law, if the consignee is absent, the cargo still belongs to the entity named as the shipper on the Bill of Lading. So, the carrier, port, and authorities will try to make the shipper handle it or at least recover the charges from them. This process can take years of negotiation.

 

Forwarders should remember that if their company is named as the shipper or consignee on the BL, they are responsible for the goods in the abandoned containers, even if they don’t own them. Follow our advice to avoid getting trapped in the unclaimed cargo mess.

 

Prevention is better than cure

 

There’s no surefire way to avoid uncleared cargo, but a bit of extra attention and some preventive steps can save you a lot of headaches. Here’s a handy checklist for forwarders, who often bear the brunt of managing abandoned cargo:

 

  • Keep Tabs on Overdue Containers: Always monitor containers that are overdue and piling up charges. This quickly becomes your issue.
  • Act Quickly: Don’t procrastinate. Most problems can be sorted out quickly before costs spiral out of control. Apply pressure on the shipper/consignee early. Merchants are rarely helpful once costs surpass the value of the goods.
  • Be Careful with Bookings: Try not to be listed as the shipper/consignee on the Master Bill of Lading (MBL). This can shield you from some responsibility.
  • Prioritize High-Value Shipments: Abandoned cargo is often low-value or freehand shipments. Pay extra attention to these or avoid them if you can. If you’re unsure about the cargo or the shipper, think twice about whether the revenue is worth the potential claims.
  • Cut Costs: Have the cargo unstuffed and stored in a bonded warehouse to reduce expenses.
  • Inform Shippers/Consignees: Make it clear to shippers/consignees that they can’t just abandon the cargo without facing consequences. Freight forwarders often sign Letters of Abandonment without realizing the implications, losing any chance of recovery from the cargo owners.

 

If these steps don’t work and you end up with uncleared cargo, there are still a few things you can do. Read below about a website that can help you solve the unclaimed cargo problem right now.

 

Reselling the Cargo

 

The website is called Globy, and it provides an innovative solution you won’t find anywhere else – a marketplace for unclaimed cargo. This platform allows cargo owners to sell goods from overdue containers to new buyers, saving them from hassle and financial loss.

 

To list your cargo, you’ll need to provide ownership documents and proof of the cargo’s value, and offer at least a 5% discount. Buyers can then directly contact sellers to negotiate better prices. Globy doesn’t take any commissions or meddle in negotiations. If you can’t find a buyer within a reasonable time, Globy’s representatives might even purchase the goods themselves. So, act quickly and list your goods as soon as you suspect any issues with your consignee. The sooner you act, the less you lose.

 

In conclusion, abandoned cargo is a challenging issue that primarily affects the shipper. Take all necessary precautions to avoid it, keep a close watch on goods at the port of discharge, and if problems arise, utilize every option to resolve them swiftly. Globy is here to support you every step of the way.