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Our Ref: 94/06
In November 1992 the club issued its circular 92/11/2 under this same heading, and attached a set of guidelines for agency staff concerned with the issuance of delivery orders.
The incidence of claims arising from this cause has continued to give rise to concern, and at their last meeting the Directors of the Club considered the actual circumstances leading up to a number of these claims. The Directors were requested to lay down guidelines which would be of assistance to both the Members and to the Club's Managers in their consideration of claims. Every claim will continue to be considered on its individual merits and circumstances but set against the following guidelines endorsed by the Directors:
Suggested text of a letter or fax to be sent to a principal:-
The recognised procedures for delivery of cargo carried on your ships require that, in the majority of cases, we obtain a signed, original Bill of Lading before releasing the cargo covered by that document.
Cargo receivers will on occasions request us to release their cargo without the submission of an original Bill, in exchange for their own indemnity or one counter-signed or issued by a bank.
We are not, of course, a party to the contract of carriage and therefore consider that we should not exercise our own judgement on these occasions, but rather request your detailed instruction in advance as to how we should respond to cargo receivers. Alternatively, we should be pleased to refer all such requests to you for instruction as and when they are received.
We are anxious to ensure that we are acting only in accordance with your requirements and in your best interests, and would therefore be grateful for your response as soon as possible.
The Managers will always be pleased to provide additional copies of the guidelines and circulars.
A reduction in the exposure of Members to this type of claim must be in the best interests of both Club and Member. The value of these claims is often very considerable and in some cases had exceeded the Member's limit of liability under his insurance with ITIC; thereby threatening the ability of the Member concerned to continue to trade. The majority of claims could have been avoided by the introduction and enforcement of appropriate systems and controls, and the Managers will always be pleased to advise any Member seeking to limit his exposure to such claims.
ITIM Co. Limited, Managers
International Transport Intermediaries Club Limited
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