Shipping agents urged to look out for forged Bills of Lading

4 December 2013

Shipping agents are being urged to be on the alert for forged bills of lading and other documentation which could result in them being liable for substantial claims from cargo owners. 

The International Transport Intermediaries Club (ITIC) says agents and members of International Federation of Freight Forwarders Associations (FIATA) need to be especially alert after the conclusion of a recent forgery case. 

An article in Claims Review, published by ITIC, details the case of a forged bill of lading court involving a Belgian ship agent who released six containers of castor oil, valued at US$270,000, against a fraudulent bill of lading. The containers were shipped to Belgium from India and the bill of lading presented to release the goods was a forgery but the agent inadvertently allowed the containers to be released into the wrong hands. 

The aggrieved shipper, who held the original, correct bills of lading, had one of the carrier's vessels arrested in India until a bank guarantee was secured and the carrier turned on the shipping agent for compensation.

TIC said the forged bills had incorrect details, such as the name of the loading port, and also spelling errors, including the name of the carrier, showing that the agent had been negligent.

The claim brought against the carrier by the shipper was for the cargo value plus costs and interest. The case was fought in the Indian courts, which is usually slow and, after almost four years of negotiation, a  $160,000 settlement has been agreed - $100,000 less than the original amount claimed. ITIC also reimbursed the carrier's legal costs and bank charges.

The ITIC says it has never been easier for documents to be cleverly forged.