- Special Port Schedule Triggers Unexpected Costs.
- Delay Update Missed During Agent Handover.
- Agent Admits Fault, Full Reimbursement Issued.
The International Transport Intermediaries Club (ITIC) has released information about a recent case in which it assisted a client after an expensive mistake due to a communication breakdown. The professional indemnity insurer paid out a $135,000 claim, attributing the problem to a mere oversight, reports The Maritime Executive.
Special Port Calls Lead to Unexpected Charges
The situation arose when the ship owner scheduled special port stops off its regular liner schedule and notified the liner agent of the updated inbound schedule. The liner agent was told to arrange the required things for the unexpected calls.
According to the initial plan, the agent booked a pilot and initiated the customs clearance process. But before the vessel’s arrival, the agent took leave and handed over the responsibility to a covering team.
Delay Notification Missed in Handover
The agency was informed of a three-day delay at the first discharge port. Although the covering team informed the first port’s arrangements, they did not update the arrangements at the second port.
The supervision was revealed when the vessel arrived at the second port, and there was no pilot, leading to considerable delays and fees. The shipowner had to pay $135,000 in costs because of the necessity to hastily arrange a pilot and pay penalties.
Agent Admits Error, Claim Reimbursed
The shipowner claimed ITIC, assigning the mistake to the agent for not having updated the second port’s schedule. The agency assisted ITIC, supplying complete documentation and owning up to the mistake. “As there was no defense,” ITIC said it “honored the claim and reimbursed the full amount.”
ITIC Stresses Importance of Internal Communication
Mark Brattman, Claims Director at ITIC, emphasised the broader lesson from the incident. “A mistake like this highlights the need for clear internal communication and robust handover procedures,” he said. “Our goal is to help members learn from such incidents and strengthen their operational procedures.”
Oversight Highlights Industry Challenges Ongoing
Despite more digitalisation and modernisation, this case highlights how mundane operational activity is still of vital importance in shipping. A small internal mistake cost significant financial damage, financed by the insurer.
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Source: The Maritime Executive
