International Trade Sea Transportation Logistics Cases

International Trade Sea Transportation Logistics Cases,Learn and understand relevant cases to avoid losses caused by negligence in daily trade.

A French trading company has signed a procurement contract with a Chinese import and export company to purchase 500 tons of wheat. The contract stipulates that a letter of credit will be issued before January 20, 2022, and shipment will be made before February 5. Open a letter of credit for buying a house on January 28th, valid until February 10th.

Due to the difficulty of the seller in loading the goods on time, the seller contacted the buyer and informed them that the shipment needs to be postponed to February 17th, and the validity of the letter of credit needs to be extended to February 20th. The seller replied that the same was true, but did not notify the issuing bank. On February 17th, when the goods were loaded on board and the seller went to the bank for negotiation, the bank refused to pay.

Question: 1) Does the bank have the right to refuse payment? Why?

Answer: The bank has the right to refuse payment for this transaction. The reason is that the documents do not match.

Question: 2) As the seller, how should we handle this matter.

Answer: The seller must promptly notify the issuing bank. Adjust the payment time according to the contract agreement between the buyer and seller.

International Trade Sea Transportation Logistics

A freight forwarding company has accepted the commission of the shipper to arrange for a batch of tea to be exported by sea from China to foreign countries.

After extracting and loading the containers provided by the shipping company, the freight company delivers the entire container of goods to the shipping company. At the same time, the shipper shall handle the transportation insurance for the goods themselves. When the consignee unpacked and picked up the goods at the destination port, they found a very strong odor inside the container. After investigation, it was determined that naphthalene had been loaded in a previous shipment before the container was changed. As the previously loaded goods were products with a very strong odor, the container was not cleaned and disinfected. The tea shipped this time was contaminated with odor, resulting in a loss of product value.

Question: 1) How can the consignee make a claim in this situation?

Answer: The consignee can seek compensation from the seller because according to the division of responsibilities, the seller has direct responsibility and obligation.

2) Who should ultimately bear the compensation responsibility for the tea pollution accident?

Answer: The transportation company is responsible for compensation.

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