Do contractual terms always matter? i.e. if you are buying CIF/FOB etc
Financially Yes but operationally No. (I’m not totally bonkers please read on)
Remember, if you have a quantity claim you need to prove where the loss happened and why. So, from an Operators perspective you always need all the “i’s” dotting and “t’s” crossing, even when you think you don't!
What I mean by this is that, yes, you may not be too concerned about the accuracy of the shore figures if you are buying on vessel figures but what if those vessel figures are over stated? This will then impact your PnL on the next link of the trading chain. Thus a low risk trade has potentially turned into a high risk trade.
It is thus best to assume that accuracy of figures and operational standards are always important no matter what purchase and sales contract you have. By doing this you always cover your ****. Most importantly you will be in a much better position to defend/persue a claim.
An effective Cargo Assurance policy should provide you with this guidance. If you don’t have one please contact me and let us have a chat.
Influential Global Leader | Non-Executive Director | Supporting Organisations with Strategic Vision, Executive Leadership, International Perspective and Risk Management Expertise
4 个月Have been saying recently there is no such thing as a loss. Not when taken as a whole, for every loser there is a gainer, some where. Basically there is change of ownership at a point of custody transfer . Either authorised for the transactional quantity, inadvertent where measurement tolerance work on one favour or another or unauthorised change of ownership where a third party, or even one of the transactional partners has deliberately understated or overstated their received or delivered quantity. But there. Is no such thing as a loss. It may not be obvious but here is ALWAYs an explanation