UK insurer International Transport Intermediaries Club (ITIC) has been forced to pay out after a costly admin error ruined a shipment of frozen pastry.
The company said it had reimbursed an unnamed ship agent member €30,000 ($31,500) after the total loss of the cargo due to a temperature mistake.
In its latest claims review update, the insurer revealed that the agent had to make a payment to the consignee on behalf of the carrier.
A 40-foot reefer container carrying 12 tonnes of frozen pastry and baking dough in pallets was booked to be transported from Europe to the Middle East via the port of Antwerp, ITIC said.
The cargo was loaded in the container by the shipper and the temperature set at -18c.
Once the vessel reached Antwerp, however, the agent incorrectly booked the cargo into the carrier’s system to be transported at +18C, ITIC added.
“Despite the bills of lading stating the correct temperature of -18C, the error in the booking system was not spotted until discharge in the Middle East,” the insurer said.
The pastry, therefore, travelled from Antwerp to the Middle East at +18C, resulting in its ruination.
The consignee subsequently tried to claim directly from the ship agent for the full commercial value of the cargo.
But this was in excess of the limitation of liability on the bill of lading that the carrier would have been able to rely upon, the insurer added.
This was brought into play by the carrier and it was able to settle with the cargo owner.
The carrier then passed the claim to the agent, which had to settle the €30,000 payment, ITIC said.
