Failure to collect Delivery Charges

A liner operator running a service between Europe and the Far East provided its agent in the UK with a breakdown of additional charges to be levied for the transportation of containers to and from different UK ports.

An employee of the agent at one of those ports believed (mistakenly) that containers delivered to and from the base port were at the expense of the shipping line.  He therefore invoiced only the ocean freight for a period of more than two years. In June 1994 an external audit of the line's accounts showed that total delivery charges of approximately £70,000 had not been billed.  The line claimed £70,000 from the agent.  As further internal investigations revealed that the figure might be closer to £100,000, the Club made a prompt settlement.