Mis-delivery claims in China

International Law Firm Clyde & Co has recently issued an article dealing with an apparent increase of misdelivery claims in China particularly associated with the iron ore trade. The poor financial state of local mills and traders is causing banks to secure their rights over cargoes by withholding delivery pending payment. Clyde & Co highlights the usual risks attached to the use of LOI’s and offers valuable guidance on how the Carrier’s exposure can be minimised.

Assureds will be undoubtedly aware of the Club’s exclusion in respect of claims resulting from the (wrongful) delivery of cargo without production of the original bills of lading. However, if in doubt, they should contact the claims department either in London or Shanghai for guidance.