Manifest mistake

A ship agent failed to manifest a cargo, which was a yacht, at the original port of loading. At the second port on the voyage the customs inspectors identified the error and seized the yacht.

The yacht’s owners went to court to claim for either delivery of their cargo or damages for their loss in the sum of US$ 500,000. Despite everyone’s best efforts, the yacht remained in detention and the claim increased to US$ 800,000.

Whilst the ship agent was not named directly in the claim by the consignee, the ship owner filed a separate claim against the ship agent requiring an indemnity of up to US$ 980,000 (the US$ 800,000 plus legal costs).

Initially settlement was offered to the consignee as perthe value of the cargo which was US$ 125,000. This was rejected. Eventually, US$ 250,000 was accepted by the consignee – a reduction of US$ 550,000 on the claimed amount. The ship agent reimbursed the ship owner this sum, which was covered by ITIC.