Coronavirus and limiting risks in forwarding and transporting

How to manage the spread of coronavirus that is impacting freight forwarders and logistics operators? The potential impact on the logistics and supply chain management of ocean freight forwarders and logistics operators should be considered in the real situation where measures to reduce the spread of coronavirus but is disrupting the movement of goods, causing delays and potentially damage to goods.

The ocean container supply chain includes processes related to personal contact, clerical work, and data access, in which, in many stages, there is a large concentration of people and interaction on a large scale... Packaging activities inherent to human interaction as well as clerical and data entry. Many businesses in China have implemented “home-based” forms but it is certain that paperwork related to customs and transportation will still be interrupted, leading to delivery problems in the country. destination.

Impacts on freight forwarders and logistics operators on a commercial basis: Any reduction in cargo handling and transportation can significantly impact customer sales. There is also a risk that key customers will rely on forwarders to provide expensive "alternatives" such as air transportation and the use of non-specialized maritime service providers. trips that do not comply with the signed contract.

In general, in addition to closing offices in China, many companies have implemented a limited travel regime. Certainly, technologies for remote conferencing will provide a solution for this.

Coronavirus và hạn chế rủi ro trong giao nhận, vận tải

Need legal review. With special contracts, while most forwarders operate without special negotiating contracts (because they are based on standard business conditions), some forwarders have established themselves. supply chains, or shipping management agreements with their important customers. In such cases, it is necessary to review all customer-specific contracts for services related to ocean shipping and to identify suppliers' obligations to perform in contexts. a scene such as a coronavirus case. Is the freight forwarder or their agent issuing FCR (Forwarder’s Certificate of Receipt or Forwarder’s Cargo Receipt) and / or bill of lading (Bills of Lading)? Does the operator require synchronization? Is anyone responsible for export customs clearance ...?

For industry-standard terms (delivery), in the case of an operator trading under industry-standard terms (e.g. standard national terms of delivery association), The sending of force majeure notices is important to note.

Coronavirus và hạn chế rủi ro trong giao nhận, vận tải

In terms of communication with customers, it is important for freight service providers to keep customers through all the problems that other stakeholders encounter in the supply chain, such as suppliers. supply, truck tractors, shipping lines, agents and yards. In order to rely on a force majeure clause or waive the obligation to comply with general law, the operator needs to prove that the losses of the customer and any non-performance, performance of the work are due to practical and reasonable problems that are beyond their control.

In terms of communication with other supply chain stakeholders, freight forwarders and logistics operators need to maintain a system of papers and documents to minimize the risk of complaints and that is evidence. that they have done everything appropriate to avoid customer losses.

The problem at the port of destination, it is clear that not only the specific problems present in China need to be considered. If the original bill of lading is not drawn and / or is not delivered to the destination port, there is a risk that forwarders, buyers and shipping lines will have to find "an alternative".

Coronavirus và hạn chế rủi ro trong giao nhận, vận tải

If a shipping line issues the original bill of lading to an agent in China or through the customer's network of forwarders but cannot deliver to the agent/forwarder at the port of destination for reasons other than control of the carrier, then, with the "alternative workaround", the carrier may request a letter of indemnity (LOI) at the destination before delivering the container to a party who cannot present the bill of lading origin.

Failure to provide a letter of commitment to pay compensation for shipping lines can delay the release of goods and may result in container storage charges. Claims for a commitment of indemnity should not be applied if the carrier only issues the Sea Waybill.

Similar to shipping carriers' original bills of lading, there is a risk that house non-vessel operating carriers (NVOC) bills) cannot reach the port of destination. Specifically, in the case of coronavirus, but also in the general situation, operators should be careful before allowing returns without the need for the consignee to present the original secondary bill of lading. It is also possible that the customer/consignee abandons the goods at the destination ports without a bill of lading, stop-to-delivery instructions issued by suppliers and/or significant accumulation of storage charges. Forwarders should proactively work to avoid the costs, complex customs and operational issues arising from abandoned goods; especially to avoid thinking that there is nothing to do in the hope that the problem will be solved on its own.

For complaints in China, there is a risk of complaints from vendors against forwarders, logistics operators and/or their agents/network networks. If salespeople are not paid due to documents, documents or data access problems, or because the buyer has received the goods but did not pay, they can sue the issuer of the receipt. (forwarder's cargo receipt - FCR) or NVOC bill of lading. Before any goods are returned to the consignee, operators should check: did the seller not give stop notices to them or to the dealer/network Their office in China or claim if the goods are paid.

Source of the article: vla.com.vn/coronavirus-va-han-che-rui-ro-trong-giao-nhan-van-tai.html

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