Importing forwarder charges for lack of documentation

[JoelGrimes]

Hello,

We import a product from Turkey to UK and always goes through well. We've used this forwarder before.

Product is generally considered not hazardous. But our forwarder has said the shipping line declared it hazardous and asked for an MSDS from our supplier. Supplier send the MSDS which stated product is UN 1993 but declared it safe for transport. So the shipping line held our forwarders trailer until a dangerous goods document was supplied.

The problem I have is, our forwarder started to charge us demurrage fees at £250 per day immediately for just two pallets. When I asked, "don't ports have a free demurrage period of anywhere between 1-7 days", I was ignored. I also asked who is charging this fee, forwarder, shipping line or the port. As I want to see an invoice if its the port. This was ignored too.

Does this situation sound legitimate or is our forwarder using this trick to get more cash from us? £250 a day sounds extreme, with no free time too. I argued that the forwarder should have requested MSDS from supplier at or before pickup, accessed it, then forward sealed trailer to shipping line. Therefore any costs should be shared, not fully passed on to me. Doesn't that sound reasonable?

 

[Shipping Guru]

Hi Joel, after being in the freight world for nearly 2 decades, this is not a surprise to me. Shipping lines, forwarders, Ports are all after money money money. Yes there should be some free time but this is at the discretion of the port.

Your plight is one I encounter all too often and is one reason I have so many new customers. I am more than happy to help you out for future shipments. Please DM me and we can discuss it further.

many thanks

Carl

 

[James]

Hi Joel, Just to clarify, the responsibility for providing the Material Safety Data Sheet (MSDS) and Dangerous Goods Note (DGN) rests with the shipper in this case (supplier). The freight forwarder should have asked at the time of booking is there is any hazardous goods as part due diligence.

I am happy to have a look at the MSDS to see if it falls under LQ ect but if a DGN is being produced then i would expect that it is legitimate.

You might have more chance of getting the cost split with your supplier as they did not make you aware prior to arranging the transport of the MSDS.

£250 a day doesn't sound out of the norm unfortunately.

Regards James

 

[MOIC]

As the importer of the goods, it's your responsibility to ensure all paperwork is included and correct.

What were the incoterms with your supplier?

Generally a 'good' forwarder would get the import process in motion before the vessel arrives, so issues like this have time to be cleared up before the vessel arrives.

As it was an LCL shipment, it can take a couple of days for the vessel to be tipped, in which case your 'free' demurrage time, could have been used during this procedure.

We learn every day!

 

[JoelGrimes]

Hi Joel, after being in the freight world for nearly 2 decades, this is not a surprise to me. Shipping lines, forwarders, Ports are all after money money money. Yes there should be some free time but this is at the discretion of the port.

Your plight is one I encounter all too often and is one reason I have so many new customers. I am more than happy to help you out for future shipments. Please DM me and we can discuss it further.

many thanks

Carl

Hi Carl, Thanks for your reply. I'll remember your post and contact you when we have another shipment.

Forwarder has just told me they are charging us the fee, not the port. That is Yalova port in Turkey. I had asked if the port charged them which was then passed to us. Apparently not. Which it makes it worse IMO.

Hi Joel, Just to clarify, the responsibility for providing the Material Safety Data Sheet (MSDS) and Dangerous Goods Note (DGN) rests with the shipper in this case (supplier). The freight forwarder should have asked at the time of booking is there is any hazardous goods as part due diligence.

I am happy to have a look at the MSDS to see if it falls under LQ ect but if a DGN is being produced then i would expect that it is legitimate.

You might have more chance of getting the cost split with your supplier as they did not make you aware prior to arranging the transport of the MSDS.

£250 a day doesn't sound out of the norm unfortunately.

Regards James

Hi James,

Thanks for your helpful reply.

Yes I agree. Really amateur level of service from the supplier. Doubtful they will share the cost, but they definitely should as that would be fair. £250 was charged to us by our forwarder not the port according to them (I just asked them). They've lost our business as they're not trustworthy.

As the importer of the goods, it's your responsibility to ensure all paperwork is included and correct.

What were the incoterms with your supplier?

Generally a 'good' forwarder would get the import process in motion before the vessel arrives, so issues like this have time to be cleared up before the vessel arrives.

As it was an LCL shipment, it can take a couple of days for the vessel to be tipped, in which case your 'free' demurrage time, could have been used during this procedure.

We learn every day!

Hi MOIC

Thanks

We didn't discuss the incoterms, they produce our goods and I book a forwarder to collect.

Our forwarder gave us 1 hour free time, thats why charges started immediately really.
Could you clarify what you mean by 'tipped'? Does that mean emptying out while docs are processed for new load?

I agree, documents should have been checked and cleared prior to sealing and completing customs process.

 

[MOIC]

Could you clarify what you mean by 'tipped'? Does that mean emptying out while docs are processed for new load?

Yes, but not related to time taken for documents that need to be prepared.

It may be the case that your forwarder incurred the 'free days' demurrage for the whole container, as they delayed the Customs process for lack of documents.

Negotiate with them, but if they fail to budge (with costs increasing by the day), it's your decision whether you feel the additional costs are worth accepting the shipment.

They've lost our business as they're not trustworthy.

Correct decision!

 

[Customs Geek]

We didn't discuss the incoterms, they produce our goods and I book a forwarder to collect.


You really should consider properly looking at Incoterms as they set out buyer and seller responsibilities and costs.
You also need to tie down costs etc in your contract.

By arranging collection and trying to export in a foreign country where you don’t know the process or may have language barriers leave you wide open to problems. What you are doing is exworks Incoterms
You are best getting the supplier to at least sort the export out of their country so they are responsible for getting the correct shipping documents. If costs fall to them they have incentive to act promptly with any missing documents. To get them to do this you should look at other Incoterms rules the least responsibility for the seller you should consider is FCA.