Abandoned Cargo at Destination: Who Is Liable?

Cargo Abandoned at Destination — What Should the Shipper Do?

Hello everyone, today’s content is specifically for export trading companies and cargo owners.

Starting May 1, 2026, the new Maritime Code takes effect, and the liability for uncollected cargo at destination ports has completely changed.

In the past, if cargo arrived overseas and the customer refused to pick it up or abandoned it, that was the consignee’s problem.

But under the new law, as long as the customer hasn’t exchanged the bill of lading, hasn’t picked up the cargo, or hasn’t exercised any rights — all port congestion fees, container demurrage, storage charges, and even any shortfall after auction will be borne by the domestic shipper.

Many business owners think: “I received full payment and shipped CIF — it has nothing to do with me.”

Wrong! The law only looks at who the shipper is, not whether you’ve been paid.

If cargo is truly abandoned, the shipping line can sue you domestically — it’s fast and easy to enforce, putting your risk exposure at maximum.

So as shippers and cargo owners, how exactly should we protect ourselves?

Today I’m not going to give you vague theory — I’ll give you 7 things you must do immediately, each one practical and potentially business-saving.

First, add specific clauses to your trade contracts to lock down abandonment liability. From now on, every new contract should include a clause stating: The buyer must take delivery within an agreed timeframe after the cargo arrives at the destination port. All costs and losses arising from the buyer’s abandonment or refusal to take delivery shall be borne entirely by the buyer, including port demurrage, container detention charges, legal fees, litigation costs, and so on. At the same time, try to increase deposits and prioritize full-payment-before-shipment terms to reduce abandonment risk at the source.

Second, strictly vet buyer qualifications — stay away from high-risk customers. For new customers, small customers, or customers in high-risk regions, always do extra due diligence on their creditworthiness and financial strength. Avoid open account terms when possible, avoid deferred TT payments — don’t drag yourself into massive risk for a single order.

Third, track your cargo throughout the entire journey — don’t just wash your hands of it. Shipping the goods isn’t the end — it’s the beginning. Keep a close eye on sailing schedules and estimated arrival times. Remind your customer one to two weeks in advance to prepare for pickup. If the customer stops responding or acts abnormally, be on high alert immediately — don’t wait until the shipping line sends you a notice to start panicking.

Fourth, once you receive a “no one claimed the cargo” notice, mitigate losses immediately — do not delay. Port demurrage and container detention charges accumulate daily. The longer you wait, the more you lose. Once you confirm the customer has abandoned the cargo, resell it if possible, arrange return shipment if feasible, or dispose of it locally as quickly as possible — minimize the loss.

Fifth, clarify the shipper identity at the time of booking to avoid being held liable by default. Especially for FOB-nominated cargo, try to have the overseas-nominated forwarder handle the booking. Don’t let a domestic forwarder casually become the contractual shipper in their own name or yours — otherwise the liability can easily fall on you.

Sixth, leverage the carrier’s notification obligation to protect your defense position. The new regulation requires shipping lines to notify the shipper promptly. If the carrier fails to notify in a timely manner, causing charges to snowball, you can rightfully refuse to bear the expanded portion of the loss. Keep all chat records, emails, and notices as evidence.

Seventh, purchase appropriate logistics liability insurance to transfer the risk. For high-risk countries, high-risk customers, or low-value orders prone to abandonment, consider adding logistics liability insurance or abandonment-related coverage. If something goes wrong, the insurance company provides a safety net — you won’t lose everything on a single order.

One final reminder: after May 1, cargo abandonment at destination is no longer “the customer’s problem” — it’s a primary risk that we shippers must bear ourselves. Revise your contracts, screen your customers, and tighten your processes — that’s the only way to operate more safely and sustainably. International trade isn’t easy. Wishing everyone smooth shipments, no abandoned cargo, and minimal risk.