In the high-speed, high-pressure business of ship agency, time pressures increase the likelihood of errors.
Increasing competition means that you have to provide more services to higher standards, in less time, and for lower levels of remuneration than ever before.
Examples of errors ITIC has encountered:
- misdirection of cargo - containers sent to Santiago in Chile, instead of San Diego in California, USA;
- wrong port information provided;
- bill of lading drafting errors - freight marked ‘prepaid’ instead of ‘collect’; or failure to insert clause for on-deck stowage;
- reefer temperature problems - set to +20° instead of -20°;
- manifest errors - weight shown in kilograms instead of pounds, resulting in customs fines;
- incorrect freight quotations - quote for Bilbao in Spain instead of Balboa in Panama. The line will claim any shortfall in freight from the agent;
- mistaken release of cargo - wrong person, incorrect documents – ship owner's insurances will fail.
ITIC’s professional advice and experience is available at all times; we can help you avoid problems in the first place.
Liner agents - the claims experience
Liner agents’ errors or omissions claims account for claims in excess of US$ 13 million presented to ITIC over the past five years. The best way to explain the insurance provided by ITIC is to provide examples of claims. All of these claims result in expense for the shipping line, much of which is not covered by the line’s P&I or hull insurances.
Most claims against ship agents relate to negligence, examples of which are:
- providing wrong port information;
- documentary errors - which can result in:
- inability to collect freight
- errors in quoting freight rates
- customs fines and confiscation of cargo
- misdirection/cross delivery of cargo
- reefer cargoes at wrong temperature
- erroneous fumigation
- mismanagement of equipment
- delivery of cargo without bills of lading