Port of Destination Abandonment: Shipper Bears All Costs; Forwarder Liable from Booking
On May 1, 2026, the revised Maritime Law of the People's Republic of China will officially take effect. This is the first systematic major revision of the law since its implementation in 1993. Among them,Article 93: The liability rules for unpicked goods at the port of discharge have undergone a fundamental change - the "consignee's liability" that has been used for more than 30 years has been replaced by "the shipper's liability".
For freight forwarding companies that nominally book space with shipping companies, this meansOnce abandoned goods appear at the destination port, the freight forwarder is likely to be the first to be targeted for compensation.
Why can’t the old rules continue?
Article 86 of the original Maritime Law stipulates that the cost and risk of no one to pick up the goods shall be borne by the consignee. However, in practice, carriers have long faced liability dilemmas:
First, it is difficult to lock the identity of the consignee, especially in the case of instruction bill of lading or bearer bill of lading;
Second, the cost of border recovery is high, and even if an overseas consignee is found, foreign litigation and enforcement are extremely difficult;
Third, under FOB terms, foreign buyers designate freight forwarders and shipping companies, and domestic shippers only assume the role of breach of contract, but are often involved in additional liabilities in disputes over abandoned goods.
Core differences between the old and new laws
Article 93 of the new law changes the default subject of liability from "consignee" to "shipper", and also adds the carrier's notification obligation and an important exception:If the consignee has effectively enjoyed the rights under the maritime cargo transportation contract (such as order exchange, customs clearance, etc.), but delays or refuses to pick up the goods, the costs and risks will still be borne by the consignee.
That is to say,In the case where the consignee has never appeared and has never had any contractual rights free of charge, the carrier can first recover demurrage fees, storage fees, late payment fees and other expenses from the shipper, but must notify the shipper in a timely manner.If the carrier fails to notify, resulting in increased losses, the shipper may refuse to bear the increased costs.
Division of responsibilities in the following two common scenarios
Looking at typical cases, there are obvious differences between the two responsibilities under the new regulations.
The first scenario is that the buyer loses contact.Under the old law, the carrier could only pursue liability from overseas buyers, which was difficult to enforce, so it often negotiated with the freight forwarder. Under the new law, the carrier can directly pursue compensation from the shipper (i.e., the booking freight forwarder). At the same time, the carrier has the obligation to notify, and the freight forwarder can stop losses in time after receiving the notice.
The second scenario is that the buyer regrets after completing the customs clearance procedures.At this time the buyer has clearly refused to take delivery of the goods. At this time, the buyer has clarified the rights in the transportation contract, so all costs and risks incurred are still borne by the consignee (buyer), and the freight forwarder has no legal responsibility. The key to judgment is whether the consignee has "directly exercised its rights under the transportation contract without compensation."
Who is a "shipper"? The two types of shippers have different liability coefficients
Article 42 of the new law clearly distinguishes between "contract shipper" and "actual shipper".
The contract shipper refers to the party that places a transportation contract with the carrier and the freight forwarder that books space with the shipping company in its own name; the actual shipper refers to the party that actually delivers the goods, usually the cargo owner or consignor.
The Supreme People’s Court Guiding Case No. 230 further clarifies,The costs and risks arising from the unavailability of the goods at the destination port shall be borne by the contracted shipper, and the actual shipper shall not be liable for compensation.This means,Freight forwarders who book space in their own name will become the shipping company's medical burden, and the cargo owner does not bear direct responsibility.
Three principles of freight forwarding risk control
With the new regulations, freight forwarding companies need to speed up their adjustment.
1. Proactively inform customers of changes in responsibilities,Clearly explain the core of the new law to cargo owners (especially exporters under FOB terms), break the cognitive misunderstanding that "waste goods have nothing to do with themselves", and avoid their own mistakes due to customer misunderstandings.
2. Standardize the contract and notification process,When signing an agreement with a shipping company, clearly stipulate the method of fulfillment of the carrier's notification obligations (in writing, email, etc.) and the timeliness of response, and keep notification records throughout the process; the agency contract signed with the customer should also simultaneously add a waste cost sharing clause.
3. Establish a hierarchical response mechanism for abandoned goods,For high-risk goods (such as goods that are prone to depreciation and perishability) and high-risk trading partners (such as buyers with unstable financial conditions), agree on a plan for handling abandoned goods in advance, including compensation, process cost responsibilities and time limits. It is recommended to agree on "responsibility for additional costs at the destination port (such as fragile premiums, etc.) to be confirmed in writing as soon as possible" to avoid subsequent disputes.
Based on the official implementation of the new law, freight forwarding companies must promptly sort out business processes, optimize contracts, improve risk warning systems, and transform compliance capabilities into core competitive advantages.
No matter how the law is adjusted and responsibilities are divided,The first step in preventing and controlling risks starts with the standardized declaration of each shipment at the port of departure.Whether the filling is accurate, the documents are complete, and the declaration is truthful - these details directly determine whether it will be subject to customs control in the future and whether additional risks will arise.
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