China -  Chinese law firm

Do shippers have the right to sue the carrier?

Do shippers have the right to sue the carrier?

In judicial practice, different courts have delivered different judgments on this issue. For example;

(a)In one case relating to a contract of sale under FOB terms, the seller having delivered the goods to the carrier obtained from the carrier a bill of lading on which the buyer instead of the seller appeared as the shipper. The carrier delivered the goods to the buyer without production of the bill of lading. The seller holding the bill of lading sued the carrier and it was held that the seller had no contractual relationship with the carrier.

(b)In another case involving an FOB sale, after the goods were placed on board the ship, the seller required a clean bill of lading while the carrier insisted on making remarks on it. A great deal of demurrage occurred as a result of delay due to the dispute. The carrier sued the seller, instead of the buyer, for the demurrage. It was held that the seller was liable for the demurrage.


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