CHEATING BY AN INDONESIAN SELLER BASED IN HONG KONG

Dear Friends and Fellow Colleagues,

As all of you are aware that we are involved in the trading of coal , coke , Anthracite and minerals like Iron ore.

Recently we have faced an very awkward moment when we where cheated by the Indonesian seller and we couldn't do anything about it.

We got into a contract to buy 1 vessel ( Approx 55,000 MT ) of Indonesian coal every month for a period of twelve month. The contract was signed in a very conducive environment. There is an involvement of an Jakarta , Indonesia based Indian broker in the deal. The LC was established for the first shipment and the vessel was placed during the agreed LAY CAN. Every thing went fine and vessel completed loading and sailed from Muara Berau for its destination in India. There was an issue of laytime calculation because of Eid Holidays and contract has some ambiguity but it was settled reluctantly. The vessel reached its destination and discharge commenced. We observed coal of various colours namely yellow, brown, black, white etc. At first observation, we realised that something is wrong but we decided to come to conclusion after complete discharge of the vessel. We still gave benefit of doubt to the seller as coal was supposed to be supplied is 5000 GAR. We completed formalities and commenced despatches to customers, We were welcomed by the rude shock as almost all customers rejected the cargo. Ultimately we decided to hire an inspection agency to do the stock analysis and heaven fell when it was reported that GCV is only 4160 GAR in place of 5000 GAR declared by Succofindo at Load port. It is found to be contaminated to the extent of 23 percent. We also had protective agents but they also gone to the seller side under their influence.

We paid for 5000 GAR but received only 4160 GAR and suffered a loss of almost a million dollar

We reported this matter to the seller but seller is refusing to do anything citing the contract which says load port result is final. Though the contract is basis load port result, do we have any remedies available to claim losses or damages from the seller. This is a true incidence and particulars are not being released at this time but certainly publish in due course.

Looking for opinions as to how we can seek reprieve so that no body else has to suffer in a manner like us.

I can reached so that we can discuss one to one as well.

Thanks in advance.