ITIC warns owners on the price of not watching for misreading tariffs


International Transport Intermediaries Club (ITIC) said the misreading of tariffs in shipping documentation is a common cause of costly claims. ITIC cited the case of a South American port agent asked by the owners of a vessel to quote for the costs of discharging a shipment of project cargo. The agent reviewed the port authority’s official tariffs and advised the stevedoring costs would be US$28.90 per mt of cargo. The cargo weighed 296 mt, so the owners calculated the stevedoring costs at approximately $8,500 and quoted that in turn to the charterers of the vessel. The voyage was duly fixed on that basis. After the cargo had been discharged, the stevedores invoiced the agent for $130,000. When questioned by the owners, the agent realised the $28.90 rate it had quoted to the owners was the rate per cubic metre, not per metric tonne. After discussion, the stevedores agreed to offer a discount on the costs and the claim, which was covered by ITIC, was ultimately settled for $75,000.