Abandoned Cargo: Prevention Practices and Solutions

You might not hear much about it in industry news, but the problem of unclaimed cargo can be just as damaging to logistics as port congestion or other disruptions. Unclaimed, abandoned, or uncleared cargo worsens supply chain disruptions but gets less media attention because it’s an everyday reality for nearly every forwarder worldwide.

For instance, at Apapa Port in Nigeria, overdue containers reached nearly 5,000 units in May. Some containers have been there for years! Imagine the space they occupy, the storage and demurrage charges accumulated, and the condition of the goods inside after all that time.

As a cargo owner or forwarder, you must prevent your containers from becoming overstayed or abandoned. This post will help you spot the problem early and provide steps to take if your cargo becomes unclaimed. But first, let’s define abandoned cargo.

Abandoned Cargo Definition

Why define it ourselves when the Federation of Freight Forwarders Association (FIATA) already has? Abandoned cargo is “cargo which the consignee (importer) has shown no intention of taking delivery of after a reasonable period.”

This “reasonable period” varies by country but is typically 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.

Maritime Law

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 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.

A Little Caution Can Prevent a Big Crisis

There’s no foolproof method to avoid uncleared cargo, but extra attention and preventive action can save you a lot of headaches. Here’s a checklist for forwarders’ future reference:

Watch Overdue Containers:

Keep an eye on any overdue containers and accumulating charges. This quickly becomes your problem.

Act Fast:

Don’t wait around. Most issues can be resolved quickly before costs skyrocket. Put pressure on the shipper/consignee early. Merchants rarely help once costs exceed the value of the goods.

Be Careful with Bookings:

To protect yourself, avoid being named as the shipper/consignee on the Master Bill of Lading (MBL).

Focus on High-Value Shipments:

Abandoned cargo is often low-value or freehand shipments. Pay extra attention to these or avoid them if possible. If you’re unsure about the cargo or shipper, consider whether the revenue is worth the risk of potential claims.

Save on Costs:

Try to have the cargo unstuffed and placed in a bonded warehouse to cut costs.

Inform Shippers/Consignees:

Let shippers/consignees know they can’t abandon the cargo without consequences. Freight forwarders often sign Letters of Abandonment without realising the implications, losing any chance of recovery from the cargo owners.

To sum up, abandoned cargo is a complex issue that primarily burdens the shipper.

Abandoned cargo is one of the most pressing issues in logistics, especially in the context of current global supply chain disruptions. When cargo remains unclaimed, it can lead to significant financial losses for all parties involved – forwarders, carriers, and cargo owners.

Avoid it at all costs, monitor goods that have arrived at the port of discharge, and if the worst happens, use every available option to solve the problem quickly.

One critical aspect to remember is the importance of timely communication with the consignee.

A well-established line of communication and a proactive approach help prevent delays, which could escalate into larger problems.

Another precautionary measure is to carefully review documentation during the booking process. Forwarders are advised to avoid listing themselves as the shipper on the master bill of lading (MBL). This considerably reduces the risks associated with being held accountable for the cargo if it becomes abandoned.

If preventive measures fail and the cargo is abandoned, it is crucial to act swiftly by relocating the cargo to a customs warehouse or unpacking the container. This will help reduce storage costs and prevent significant financial losses. In such cases, companies specialising in resolving these issues, such as Globy, can provide comprehensive solutions to mitigate risks and minimise costs associated with unclaimed cargo.

Author: Samantha Greene, Globy editor

Samantha Greene brings over a decade of experience in logistics and global trade, working with leading multinational corporations. Her vast understanding of supply chain dynamics and international compliance makes her a valuable asset.

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