How to Handle Costs of Repacking Goods at Destination Port? Leave a comment

Case

Our company exports a batch of goods to the UK. The products in cartons are packed on pallets and transported in LCL. The goods have arrived at the British port. And the customer says that the packages are not firm, and the plywood under the pallet falls apart. Now they commissioned the warehouse to repair the package, resulting in a fee of 180 euros, and ask us to pay. Is this requirement reasonable? what should I do?

Analysis

Because the container has to hold different goods, sometimes the packaging is easily damaged. In theory, you can say that you have packed it well before shipment, and you got a clean bill of lading. According to the FOB risk division, after shipment, ownership and risk have been transferred to the buyer. You are not responsible for this. The buyer bears the risk, and he can negotiate with the shipping company or insurance company.

In fact, several layers of plywood glued or nailed together as the foot of the tray are little problem with short-distance transportation. But, if it is long-distance shipment, plus the rainy season or wet air, they will deform or fall apart easily. The strength of the plywood is poor. And water or humid air will erode the plywood in transportation. Cardboard materials also often have this problem. Therefore, when exporting, we should consider the impact of long-distance shipping on packaging materials, especially during the rainy season. Try to use solid packaging materials for goods to avoid potential dangers.

Considering that the packaging problem may be caused by you and the cost is not high, I think this request is reasonable. Your company should bear this cost. Also, next time, you should consider packaging materials for goods to ensure that it is suitable for long-distance shipping to prevent the recurrence of similar incidents.

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