The main rights and obligations of the consignee in maritime logistics transport

Compared to the carrier and shipper, the provisions regarding the main rights and obligations of the consignee in maritime transport are relatively simple in China's Maritime Law. Combined with the relevant provisions in China's Civil Code, the main right of the consignee in maritime transport is the right to take delivery of the goods, which is also the primary right of the consignee. At the same time, the carrier may cause damage to the consignee's legal right to take delivery of the goods due to its own negligence or other reasons. In such cases, the consignee can claim compensation from the carrier, and taking delivery of the goods is a right enjoyed by the consignee in relation to the carrier. However, when analyzing the corresponding obligations of the consignee, it is necessary to consider the contract between the consignee and the shipper (usually a sales contract) for determination.

For the consignee, there are two main obligations: firstly, timely acceptance of the goods. Accepting the goods is the obligation of the consignee in relation to the shipper and the carrier. Article 830 of China's Civil Code stipulates: "After the goods arrive, if the carrier knows the consignee, they shall promptly notify the consignee, and the consignee shall promptly take delivery. If the consignee fails to take delivery within the specified time, they shall pay the carrier storage fees and other expenses." The time for taking delivery of the goods is usually agreed upon in the contract between the shipper or the carrier and the consignee, and the carrier may also adjust the time of delivery within a reasonable timeframe due to factors such as weather. Secondly, payment of freight and other charges. According to Article 69(2) of China's Maritime Law, if the shipper and the carrier agree that the consignee is responsible for paying the freight, and this agreement is stated in the bill of lading or other transport documents, the consignee has the obligation to pay the freight upon delivery. According to Article 78(2) of the Maritime Law, if the bill of lading specifies that the consignee is responsible for demurrage charges, deadfreight, and other loading-related expenses, the consignee has the obligation to pay these expenses. Therefore, the rights and obligations of the consignee can be determined by the contract between the shipper and the consignee, and the shipper will notify the carrier of the payment obligations borne by the consignee or explicitly state them in the bill of lading.

If the consignee discovers partial loss or damage to the goods upon receipt, the handling should be conducted in accordance with Article 81 of China's Maritime Law. If the goods have obvious loss or damage, the consignee should notify the carrier in writing of the loss or damage at the time when the carrier delivers the goods. If the loss or damage to the goods is not obvious, the consignee should submit such written notice to the carrier within seven consecutive days from the day following the delivery of the goods, or within fifteen consecutive days for containerized cargo. If the consignee fails to submit this written notice, it is deemed that the carrier has delivered the goods in accordance with the bill of lading or other transport documents, and it serves as preliminary evidence of the goods being in good condition, although it does not prevent the consignee from providing sufficient and reliable evidence afterwards to prove that the goods were lost or damaged at the time of delivery by the carrier.

In practice, situations often arise where no one collects the goods at the destination port or there is a prolonged delay in collecting the goods. In such cases, regarding the agreed "freight collect" payment, who should the freight forwarder, acting as the carrier, collect it from? This situation can be divided into two scenarios: Firstly, if the bill of lading has not been transferred to the so-called consignee, and the consignee has never claimed the goods, then the freight and charges can still be collected from the shipper. The shipper can also be held responsible for the reasonable expenses or losses incurred by the carrier due to the goods not being collected. Secondly, if the bill of lading has already been transferred to the consignee and the consignee has claimed the goods (regardless of whether they actually took possession of the goods), then the shipper is no longer responsible for the unpaid "freight collect" and the carrier can only demand payment from the consignee. However, in judicial practice, there is still some debate regarding what constitutes "claiming the goods". Some judges believe that only obtaining the delivery order (DO) constitutes claiming the goods, while others consider any expression of intention to take delivery as "claiming the goods".

Therefore, when the consignee fails to fulfill the obligation to pay the freight, the freight forwarder, acting as the carrier, should determine the party to whom the payment and freight charges should be claimed based on specific circumstances such as the transfer information of the bill of lading.

Zhai Dongwei International Trade & logistics Attorney team was founded in 2007. Its founder, Zhai Dongwei, is the founding partner of Guangdong Yingzun Law Firm. Focusing on International trade,maritime affairs, and supply chain cases for more than 16 years, the team currently has more than 30 professional logistics attorneys, of which more than 10 have overseas work and study experience, and can use Chinese, English and French to work and participate in business negotiations.