Cargo Diversions & General Average
The tragic accident in the Port of Baltimore, involving the M/V DALI that collided and ultimately collapsed the Francis Scott Key Bridge, is having ripple effects throughout our industry. Force majeure has been declared by several ocean carriers and cargo ships diverted to nearby ports. As a result, Customs entries may be impacted by port of entry changes along with a certainty of claims.
Customs Entries: Since the port of entry cannot be changed once an entry has been filed and accepted by CBP, the entry must be cancelled and refiled referencing the new port of entry. Per Customs recent CSMS message #60069598 – Guidance for Unanticipated Cargo Diversion, “Brokers and Importers will need to upload a letter to DIS that states the new entry is a duplicate due to unanticipated cargo diversion.” You can find further information regarding port code changes on page 36 of the ACE Cargo Release Implementation Guide v36 at CBP.GOV.
Claims: A variety of claims may result, from loss or damage of cargo to liability. General Average was recently declared by the owners of the M/V Dali , the MSC vessel that recently collided into the bridge in the port of Baltimore. This means the ocean carrier is released from liability and all cargo owners are now responsible for the loss, which is expected to be substantial. All cargo will be seized while the appointed GA Adjuster assesses the loss.
Per MSC: “Richards Hogg Lindley (RHL), London has been appointed as their General Adjuster and they notified us of their intention to keep all containers, including MSC’s containers, under their control until security arrangements have been made with the Average Adjusters, both for General Average and Salvage.”
If you or your clients have cargo on this vessel, simply contact us at marine@intlbondmarine.com. We can help you navigate through the complexities of General Average.
Shippers without proper cargo insurance will be directly liable for their share. Another unfortunate example of why cargo insurance is so very important.
Contact our team to protect future shipments at marine@intlbondmarine.com today!