ITIC: Careless Errors Bring Costly Claims

Careless errors by ship agents are resulting in costly claims, according to indemnity insurer ITIC.

In the latest issue of its Claims Review, ITIC cites the case of a ship agent which incorrectly calculated two pro-forma invoices in respect of port dues, using the cheaper rate for a cargo of malt, rather than the rate for the cargo of wheat booked for discharge from two ships.

The wheat cargoes had been discharged, and the final invoices for port dues sent out, before the error was discovered.

The difference between the invoiced port dues and the correct port dues totalled Euros 14,000. But the owner refused to make up the shortfall because, relying on what it had been told, it had in turn charged the lower amount to the charterer. The claim was settled by ITIC.

Another case referenced by ITIC involved the submission by a port agent of all relevant cargo declarations in respect of a ship which had tendered notice of readiness in a Middle East port. These declarations included a document which the agent had translated into Arabic and English, and which described the cargo and the names of the consignees.

When the ship arrived, the only berth at which it could discharge was not available for a further ten days. The mistakes in the translation of the cargo declarations were subsequently noticed, resulting in a three-day delay in clearing the ship for berthing, which coincided with the last three days of the overall ten-day delay.

The owner claimed against the port agent for the full ten-day period of delay, arguing that the ship had not legally been able to berth due to the documentary error.

ITIC said it assisted the agent negotiate a settlement based on 50 per cent of the overall delay of USD 110,000, which ITIC paid.

 “Errors such as these put pressure on commercial relationships. Attention to detail is important,” ITIC said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

The 5th CWC China LNG & Gas International Summit

Gain Access to Global LNG & Gas Decision Makers in China

Take a peek inside our 2019 Introductory Brochure and stay on top of this rapidly developing market.

See who is already working with us this year as Speakers, Sponsors and Partners – download your Preview Brochure today and meet them in Beijing on 15-16 October 2019.

As the world’s second largest LNG importer, China will remain the biggest contributor to global LNG demand growth in the foreseeable future. Network with global LNG & gas decision makers, buyers, NOCs and Government Officials at the industry’s leading international event in China.

More info

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >

OEE Conference & Exhibition 2019

OEE2019 is organised by Ocean Energy Europe, the industry association representing ocean energy in Europe.

read more >

Defence Safety Conference 2019

The Defence Safety Conference returns to London this October as the only event solely dedicated to enhancing safety across all aspects of defence.

read more >