Stopping Goods In Transit

As a manufacturer, whether shipping internationally or domestically extending terms to a new customer can be stressful. How do you know they will pay you on time or even at all? You cover your bases as much as you can when you get started with them maybe even using a letter of credit, getting an instant container quote, but sometimes you still send the goods Cash on Delivery (COD) so that you cover yourself. In the case of non payment or other issues with the relationship, there is a way out. Whether you realize it or not, you can still stop your goods while they are in transit. It is not always the easiest thing to do, but it is certainly legally an option.

There are laws in place to protect companies from scams and other types of fraud. In the United States we act according to the Uniform Commercial Code, article 2 which deals with product liability. There are also international shipping laws that protect companies and allow for stopping cargo in transit. One important note is that carriers are not generally responsible for the safety of the cargo when cargo has been stopped in transit. If a shipment has been stopped, it is up to the shipper to be sure the cargo is secured and there are no additional issues. Many times cargo that has been stopped is only a delay while the two companies work out the problem.

Sometimes companies will change the consignee, other times there are payment issues, but no matter the issue, there will need to be a drastic reason in order for cargo to be stopped. In the best cases, cargo will not need to be transferred or the bill of lading otherwise changed. Freight forwarders know that this can keep the cargo on a secure path to its final destination.