Propane-ful mistake

A shipbroker arranged a fixture of regular monthly shipments of propane by way of a COA.

For one shipment the buyer required a different quantity of the cargo and messaged the broker with this request.

The operator in the broker’s office failed to pass on the change of nomination and the usual cargo amounts were loaded. The sellers advised the buyers of the quantities of each cargo on board, at which point it became apparent that the change of cargo amounts had not been passed on.

The final receiver was not able to take delivery of the cargo as shipped and the additional cargo had to be discharged at a storage system and sold spot.

The broker’s error in failing to pass on the message was causative of additional costs of deviation, demurrage, storage and a loss on the cargo sold spot.

The full loss totalled US$ 350,000. This amount was claimed from the shipbrokers and reimbursed by ITIC.