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If the goods are abandoned at the port of destination, all costs incurred will be borne by the shipper.

Samira Samira 2026-04-29 11:32:44

Sunny Worldwide LogisticsIt is a logistics company with more than 20 years of transportation experience, focusing on markets such as Europe, the United States, Canada, Australia, and Southeast Asia. It is more of a cargo owner than a cargo owner~

On May 1, 2026, the revised Maritime Law of the People's Republic of China will officially take effect. This is the first systematic overhaul 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undergone a fundamental change - the "consignee's primary responsibility" that has been used for more than 30 years has been replaced by "the shipper's primary responsibility".


For freight forwarding companies that book space with shipping companies in their own name, this meansOnce goods are abandoned at the destination port, the freight forwarder is likely to bear the brunt and become the target of compensation.


Why are the old rules unsustainable?

 

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 cross-border recovery is high. 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 play a delivery role, 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 liability subject from "consignee" to "shipper", and also adds the carrier's notification obligation and an important exception:If the consignee has actually exercised its 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 never appears and never exercises any contractual rights, the carrier can first recover demurrage fees, storage fees, disposal 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 has the right to refuse to bear the increased costs.


Division of responsibilities in two common scenarios

 

Looking at two typical cases, there are obvious differences in the distribution of responsibilities under the new regulations.


The first scenario is that the buyer loses contact.There is no one to pick up the goods at the destination port. 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.Explicitly refuse to take delivery. At this time, the buyer has exercised his rights under the transportation contract, and all costs and risks incurred are still borne by the consignee (buyer), and the freight forwarder has no direct legal responsibility. The key to judgment lies in whether the consignee "actually exercised its rights under the transportation contract."


Who is the "shipper"? The two types of shippers have very different responsibilities

 

Article 42 of the new law clearly distinguishes between "contract shipper" and "actual shipper".


The contract shipper refers to the party that enters into a transportation contract with the carrier, that is, the freight forwarder who books space with the shipping company in its own name; the actual shipper is the party that actually delivers the goods, usually the cargo owner or consignor.


The Supreme People’s Court Guiding Case No. 230 further clarified thatThe 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 primary target for compensation, while cargo owners are not directly responsible.


Three principles of freight forwarding risk control

 

Facing new regulations, freight forwarding companies need to make adjustments as soon as possible.


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 misunderstanding that "abandoning goods has nothing to do with you", and avoid being passive due to customer misunderstandings.


2. Standardize the contract and notification process,When signing a booking 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 clause on sharing the cost of abandoned goods.


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), a written agreement in advance on a disposal plan for abandoned goods, including disposal procedures, cost responsibilities and time limits, is recommended. It is recommended that "additional costs at the destination port (such as war risk premiums, etc.) be confirmed in writing as soon as possible" to avoid subsequent disputes.


As the new law is about to be officially implemented, freight forwarding companies need to sort out their business processes, optimize contract texts, improve risk warning systems, and transform compliance capabilities into core competitive advantages.