Home » News » Industry News » How to Operate after the Container is Dropped?Who Will Bear the Cost?

How to Operate after the Container is Dropped?Who Will Bear the Cost?

“Container drop” is a very common term in foreign trade, freight forwarding, logistics and other industries. “Container” is a container, that is, a container, which mainly refers to shipping containers, including FCL and LCL.

There are relatively few LCL dumps, because the LCL freight forwarding company is generally strong and has a good relationship with the shipping company, and the LCL involves multiple customers and multiple shipments, which has a greater impact, so the LCL freight forwarder will try to avoid it. If you drop the cabinet, unless you catch up with the customs inspection, you can’t catch the ship, so you can only delay the next voyage.
In fact, delaying the ship does not mean dropping the cabinet. Dropping the cabinet means that you have no problems in all aspects and you can catch up with the ship. It is just due to the unilateral reason of the shipping company (the number of cabins released is more than the actual number of cabins), and there is no space for the explosion. So just dump your closet. The delay of the ship is generally due to the reasons of the freight forwarder or the shipper, and it is really unable to catch up, so it has to be postponed to the next voyage.

What is the root cause of the explosion/discard?

During the peak cargo season, the cargo volume is large and the shipping company space is limited, which is prone to bursting (especially popular routes), and inevitably some cabinets will be dumped.
In fact, it is entirely the reason for the shipping company to dump the container, because the shipping company often releases more than the actual number of spaces in order to ensure full load without wasting any space. For example: Originally, there were only 100 shipping spaces allocated to this port, but the shipping company released 110 shipping spaces to the freight forwarder or cargo owner, and the extra 10 shipping space cabinets would definitely not be able to be filled at that time – they could only be dumped and extended to next boat.
In the end, less than 10 cabins may be dumped, because among the 110 cabins placed in advance, there may be those who have withdrawn, those who cannot catch up with the ship, those who cannot leave due to customs declaration problems, or those who cannot leave for other reasons. Maybe five or six were thrown. Of course, there may be fewer than 100 that will eventually be able to go – more than 10 that are evacuated or missed.

Which cabinets are easy to be dumped?

There is a choice of which cabinets the shipping company wants to dump. It is not in a first-come, first-served order, but will give priority to the cabinets of customers with lower freight, general relationship with the shipping company, or the shipping company thinks it is not important. . Therefore, if your cargo volume is small, if you have nothing to do with the shipping company, and if your freight forwarder is not strong, then the chance of your cabinet being dumped will be higher.

What should I do after “throwing the cabinet”?

1. Missing installation
It means that the goods have entered the port and have been declared to the customs, and are dumped by the shipping company when they are loaded on the ship. There is no need for separate customs declaration and inspection, because this is a cabinet that has been released by the customs. The company will arrange another ship or delay the shipment to the next voyage, and there is no need for a second customs declaration in the middle. This is the so-called “missing load”.
2. Exit customs and re-apply
However, if the shipping company cannot apply for the missing shipment, or the customs does not agree to do the missing shipment for other reasons, the consignor must go through the customs clearance procedure with the shipping company’s new shipping confirmation and the new ship’s name and voyage bill of lading number. Entrust the team to go to the shipping agency/shipping company to handle the relocation of the container, and pay the relevant fees (replacement fee and operation fee). The re-allocation needs to be deleted and re-reported.

Costs and who will pay?

In the case of dumping the cabinet, because the shipping company’s bill of lading has a disclaimer, it does not constitute a breach of contract. Therefore, the shipping company generally does not bear other expenses other than the overall transshipment. The freight forwarding company will require the shipper to bear a series of costs such as missing shipments. Moreover, the problem of container rejection at the port of departure involves the cost of the port of departure, and it is impossible to require foreign customers to bear it.
Transshipment fee – due to the shipping company’s rejection of the container, the shipping company generally transfers the ship uniformly. Even if you do not agree to handle it, you can generally apply for a reduction or exemption.
Detention fee – due to the reason of the shipping company’s rejection of the container, you can generally apply for a reduction or exemption.
Sea freight difference – Shipping companies generally use the date of departure as the basis for calculating sea freight. Usually in the middle of the month or at the end of the month, the shipment will be dumped, and it is easy to slip into the next pricing period, and it may encounter the risk of rising sea freight. But even so, it is generally not possible to apply for a reduction or exemption.
Change of order fee – due to the reason of the shipping company’s rejection of the cabinet, you can generally apply for a reduction or exemption.

Scroll to Top