SHIPPER BEWAREInternational fruit trade survival guide for shippers

VOL. 1 | JANUARY 2018

OVERVIEW:

Invoice paymentCargo damage - Proving your lossWho is your carrier?What to know if you are not insured

Shipper Beware is a  newsletterdesigned by the staff at StilFreshand StilFresh Foundation to assistindustry players keep abreastwith recent happenings in theshipping industry which could beof use for them.

Invoice Payment

Fruit logistica 2018 is upon us and many of you are gearing up to make the trip to Berlin to meet withclients and potential customers. As you travel, we would like to share some thoughts with you.

In 2016, we were informed by some exporters from Ghana and Ivory cost that their invoices were not paid by the buyers.

Who is your carrier?

 After working extremely hard to put  containers of fruits or vegetables together, it can be very frustrating to end up not getting paid. It is thus veryimportant for African exporters to do thorough background checks on their buyers. Some times, it may suffice to ask other players in the market if they have dealt with the potential buyer before. If you happen to find yourself in this position, there are a few steps you can take to ensure that your interests are protected:

Equally as frustrating, is for your buyer to inform you that some or all of the consignment have been damaged. In many cases, such damage may result from pre-shipment causes such as over rains or bruises from handling at the farms. However, if you are confident in your processes, then you should be able to get compensation for all or at least, some of the loss you have suffered. Many people start concerning themselves with cargo claims when the damage has already occurred.

It is our opinion that this can be a little too late. Due to the passage of time and lapses in human memory, some vital information can be lost by the time you claim against the carrier or your insurer. We urge you to keep a careful collection of evidence right from harvest till loading at the port.

To prove your case, the law requires that you show that your cargo was of sound quality before you handed it to the carrier. To do this, you need the following (this list may vary according to carrier):

1.   Harvest dates 2.   Cold store temperature reading 3.   Phytosanitary certificate 4.   Confirmation of stuffing pattern of pallets

5.  Colour pictures of fruits and cartons 6.   Pre-shipment survey (if available) 7.   Title  to claim (Bill of lading, commercial invoice etc) 8.    Claim calculation 9.    Salvage receipt 10.  Temptale reading and its position in container

Many too often, shippers consider the freight forwarder to be their carrier. While this is true in some cases, in many others it is not. To understand the importance of this question, note that there may be as many as four potential parties :

The shipThe shipownerThe contracting carrier andThe actual carrier

A good number of countries in Africa are signatories to Hague Visby Rules. This makes it particularly tricky tobe able to tell who the responsible party is*. As you may be aware, under this convention, you have 1 year from the date of discharge within which to bring your claim or your right lapses. So if you were to bring a claim against the wrong party, you run the risk of being out of time when you eventually catch up with the correct party - if at all!

A key way of determining who to claim against is having a close look at your bill of lading. Notice the party in whose name the bill of lading was signed.  To be on the safe side, claim against the ship, the owner and the charterers.

Notify the shipping line and port authorityOpen a criminal casePreserve all correspondences leading up to the sale.Appoint a tracing agent to locate the buyer should they seize communication

* Art. 1(a) "Carrier includes the owner or the charterer who enters into a contract of carriage with a shipper."

Cargo damage - Proving your loss

What to know if you are uninsured

Insurance penetration in Africa remains alarmingly low. Despite many efforts on the ground, uptake of marine cargo policies remains sluggish. Many shippers rely on luck than on actuarial science. Whether you are uninsured by choice or not, being uninsured should not mark the end of your international trade venture. We encourage you to implement the below to your current claims practice if you are not already doingso.

For more information on this, visit stilfresh.co.uk or contact: admin@stilfresh.co.uk  and +49 160 343 9696 for immediate help while in Germany

This document and any recommendations, analysis, or advice provided by StilFresh and StilFresh Foundationare not intended to be taken as advice regarding any individual situation and should not be relied upon as such. 

Copyright 2018 StilFreshltd

Early notification of carrier is very important (within 3 days of discharge date to be safe)

Get the buyer to assign their rights to you (StilFresh can help draft a letter of authority for you to use)

Collect all the documents stated above

Lodge your claim against the various "carriers" listed

Prescription period within which to claim is 1 or 2 years (Hamburg Rules) from date of discharge