Successful Resolution of Freight Forwarding Dispute

A client from Saudi Arabia hired a freight forwarding company to ship goods from China to his home country. The goods arrived and were packed in the forwarder’s warehouse, ready to be consolidated into one container. However, during the import declaration process, the container was held by customs for containing contraband. After months of waiting, the container had not been released, and the forwarder refused to provide any compensation.

The client entrusted Sandy to handle the case. Because the value of the goods was not large, our legal team preferred to resolve the dispute amicably and sought approval from the client.

We contacted the forwarder and arranged an on-site visit to their company for better face-to-face communication. During the meeting, we explained that, in accordance with relevant rules and regulations, the forwarder had accepted the goods and was responsible for delivering them to the consignee at the agreed-upon time and place. However, it had been months since the goods were dispatched, and the delay unreasonably exceeded the time frame promised by the forwarder at the time of entrustment. Therefore, we argued that the forwarder should refund the freight charges and compensate for the value of the goods.

With the efforts of our lawyers, the forwarder accepted our proposal, and both parties signed a Settlement Agreement to close the case.

Contact us if you would like to have a glance of the Settlement Agreement samples.

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