Container problem contained

A liner agent acted for two different operators (A and B). They were instructed by operator A to arrange the movement of 20 of their empty containers from the storage facility to be loaded onto a ship for a ballast voyage. The plan was simple: the containers would be shipped empty to a second port, where they would be stuffed with cargo and continue their journey.

However, a clerical error in the agent’s system led to a mix-up. Instead of selecting the containers belonging to operator A, the agent mistakenly inputted containers belonging to operator B. The ship departed with the wrong containers on board.

The mistake only became apparent upon arrival at the destination port. The containers from operator B were 40ft units, whereas the intended containers of operator A were 60ft. The cargo scheduled for loading could not fit into the smaller containers, and the operation came to a halt. Recognising the urgency and potential cost implications, the agent quickly arranged for the return of the incorrect containers to the original port, minimising storage and disruption costs.

Despite the swift response, the error resulted in financial losses. The cargo could not be loaded or delivered on time, and both operators A and B suffered operational setbacks due to the incorrect use of their respective equipment. The agent faced claims totalling €35,000 from the affected parties. After settling the claims, ITIC reimbursed the agent in full.

This claim highlights the importance of precision in operational data entry, especially when working with multiple principals. A simple input error can lead to significant logistical and financial consequences. Ship agents should implement robust verification procedures when handling container movements and ensure that system entries are cross-checked against instructions. When mistakes do occur, prompt action and transparent communication can help mitigate losses but prevention through diligence remains the best strategy.