Shipping a cargo via ocean freight is one of the most tedious processes you can face as a shipper. The various agents and terms you have to deal with are endless. There’s you, the shipper. Then there’s the shipping carrier. But there’s also an agent. And what about the consignee? Don’t forget customs as well. That being said, the grey areas of responsibilities are abound. Given the complexities of shipping, it’s not uncommon for problems to arise. And when that happens, just who is responsible? Enter: Knowing your liabilities as a shipper as well as the back of your palm.
The A to Zs of shipper liability
Be it an FCL or LCL - the shipper’s liabilities are exactly the same. You’ll come to realize that prepping the container and pallets are the easiest parts of sending a shipment. As a shipper, you’re fully responsible for submitting the required documents and permits and packing your cargo. You’re also in charge of making sure all your procedures go according to the rules and regulations. And these can change from destination to destination. As a quick note, always make sure if your cargo is permitted for entry at destination. Remember that special cargo may require a specific customs declaration/permits which you are liable to provide.
Hazardous cargo
Take extra precaution when shipping hazardous cargo. As a shipper, it’s your responsibility to make sure your hazardous cargo is declared. This applies for absolutely any and all types of dangerous cargo. The process includes producing the Material Safety Data Sheet (MSDS), HS codes (Harmonized System) and hazardous packing declarations along with UN numbers, packaging class and haz group. Also note that hazard labels on containers are required.
Many companies outsource this service to third-party companies. But it is your responsibility to ensure that everything is executed perfectly. That goes for the filing of paperwork as well as filling in of correct and up-to-date information.
Note the container seal
One common mistake shippers make lies with the container seal. It is of the utmost importance that you remember to place the seal on the container and take note of the seal number. Make sure you provide correct details to your shipping carrier. I guarantee you this: Incorrectly-stated seal numbers on the Bill of Lading will send customs official raging. Not to mention the shipping delay charges that will rack up from the resulting customs exams/holds!
In the event of cargo abandonment
If, for whatever reason, the shipment is abandoned, the responsibility of paying the charges involved with finalizing the shipment goes to you, the shipper. You become responsible for all charges for the entire shipping process. You can also throw the Incoterms out the window as they no longer apply in this case. This is regardless of what you end up doing with the cargo, be it returning it, disposing it or selling it.
Shipper liability: General advice
Until the cargo arrives at destination and is released, the shipper liable for anything that happens to the shipment. Once the Bill of Lading is released, the consignee can do whatever he wants with the cargo. That said, we recommend that you give the Bill of Lading’s terms and conditions a good read to make sure you can verify and confirm every detail listed. It's also best to know how to pick the right Incoterm to avoid dealing with grey areas.
This shipper liability post was originally published on the iContainers blog.
