Failure to manifest correct freight

A liner agent Member in Australia was asked to quote for the freight payable on a number of containers of wool from Melbourne to Annaba, Algeria.  A price of AUD 211 per 1000 kgs was quoted verbally, but subsequently AUD 21.10 per 1000 kgs was entered on the manifest.  Freight was then calculated and paid on the basis of the lower figure.

Some 20 months or so later, during an audit by the line the error was discovered and the agent was notified of a claim for loss of freight.  The Club appointed  lawyers to assess the merits of the claim and the possibility of a recourse action against the shippers, who declined to make any further payment as they alleged they had accepted the invoice in good faith and had, in turn, charged out the freight to their suppliers.

As there was little or no defence to the claim it was settled promptly and in full with a payment of US$30,845.  Legal costs paid additionally by the Club were US$2,000.