A grape mistake

Watch Account Executive, Maria Michael, explain this claim here.

A ship agent was named in a cargo damage claim after mistakenly signing bills of lading “as carrier” rather than as agent. The claim arose after a shipment of grapes from South Africa to the United Arab Emirates was delayed during transit, resulting in allegations of cargo damage valued at approximately US$2.3m.

Although the delay had nothing to do with the ship agent’s actions, the incorrect signature on the bills of lading led cargo interests to include the ship agent in the legal proceedings alongside the carrier. ITIC assisted with the appointment of lawyers, who successfully demonstrated that the ship agent had acted solely as agent and had been incorrectly identified as a carrier due to an administrative error.

The ship agent was ultimately removed from the proceedings and the claim against them was dismissed. ITIC funded the legal costs which were significant.

The way transport documents are signed can have significant legal consequences. Agents should ensure staff are properly trained on bill of lading execution, that documents clearly state the capacity in which they are signed, and that suitable terms and conditions are in place. A simple signing error can expose an agent to costly and unnecessary litigation.