“Free out” failure

73 containers were carried from Saudi Arabia to Benghazi on a "free-out" basis (i.e. all port charges to be paid by the consignee). However, due to a clerical error on the part of the line's agent in Saudi Arabia, the "free-out" clause was omitted from the bill of lading. At Benghazi, the consignee refused to pay the free-out charges, as the appropiate clause had not been included in the bill of lading. 

This resulted in the port authorities invoicing the Benghazi  feeder agent, who then claimed reimbursement from the line's agent.  This simple error cost US$36,500.

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