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RCL Standard of Procedure: Abandon Cargo and
Customs detained cargo
IMPORTANT: It is an obligation for all RCL agents to protect RCL assets/ interest
Agents must keep vigilant eye on the date of arrival of containers at the port of discharge and the
date of delivery to the Consignee. The Consignee should be notified about vessel's arrival and be
reminded about the agreed free time before collection of the cargo in writing. All correspondence
shall be kept for reference purposes.
In the events that legal consultation is required, it is important to seek consultant from crossroad
solutions and always have Liner Equipment team in all correspondences.

1) Action steps
a. Notification and Reminder
It is the responsibility of the POD Agent to notify consignees and POL when there is no sign of
cargo collection no more than 10 days exclude free time given for general cargo and 5 days
for perishable cargo or reefer cargo.
In relation to the notification to POL from POD - the initial notifications to include feedback
from the consignee (reason for the delay). If the consignee cannot be contacted for answers,
this should be included in the notification. Further, to check/trace whereabouts of RCL's OB/L
if OB/L has been surrendered or is still with the Cargo Interests.
The first step to be taken is to send the Notification (Letter A) to Cargo Interests as per the
period stipulated aforementioned. Note that the Notification (Letter A) must always include
the incurred demurrage and relevant charges at the time of long staying.
o The POD Agent sends the Notification (Letter A) by registered mail, FAX and e mail to
the Consignee. He also sends a copy of his letter to the POL Agent via e-mail requesting
him to act likewise with the Shippers.
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o The POL Agent advises the Shipper in exactly the same manner (by registered mail, FAX
and e mail).
o In event that there is no positive response from the Cargo Interests, POL and POD
Agent to send another reminder (Letter B) no more than 5 days to the Cargo Interest
after the time frame stipulated on Letter A has lapse
o RCL Agents are not authorised to cease the recovery process without RCL Liner
Equipment team approval.
o If in the interim, POD Agent receives any Notice from the Customs, the same Notice
should be included in RCL's notice to cargo interests.
In case the RCL Agent who arranges for the shipment is of different country / port as the POL
Agent, the POL Agent must inform that RCL Agent concerned in relation to the long staying
shipment to follow up.
b. Update to Principal
Copies of the communication exchanges with cargo interests (Letters A and B) must kept in
file. If there are any verbal communications, to also put a note on records the date, time,
person spoke to and contents of the communication. In relation to registered post, the
registered post receipt to be retained in the file and in relation to facsimile transmission, to
also print out and retain copy in file for retrieval whenever required. Upon request, copies are
to be sent to Liner Equipment team resided in Bangkok.
POD Agents duty is to regularly update Principal with relevant POL on copy (at least once per
month) in relation to the outstanding costs so that POL can convey the responsibility to the
shipper.
c. Commercial settlement
Agents should discuss with Cargoflow Department and liner Equipment to try to find an
eventual commercial solution before the cargo will be disposed of under the jurisdiction of the
local Customs and Port Authority, i.e. discount or waiver of the demurrage costs for example.
However agents must first request Liner Equipment Team approval to proceed
accordingly.
d. Procedure in case of re-exportation / change of consignee
Following steps must be taken in order to avoid any possible financial exposure to RCL:
Re-exportation
o Retrieve the full set of original BL (or one original B/L duly endorsed)
o A written letter from the requester instructing RCL to export the cargo to the new Port
of Discharge, and stipulating that they will settle all extra charges
o POD to consider this re-export shipment as fresh booking and issue new BL with remark
on cargo description.
o POL/POD to ensure all charges are paid by shipper under new bill prior re-export
o A written letter from the new Consignee at the new Port of Discharge confirming to take
delivery of the cargo and to pay any outstanding charges from the discharge date up to
the release of the cargo
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Change of consignee
o Retrieve the full set of original BL
o Shipper or holder of OBL need to provide the LOI as per attached format request to
change new consignee
o If possible, the old consignee need to provide the LOI as per attached format
o POD to ensure all charges are paid by shipper and consignee prior releasing DO
All letters must be on a company letterhead, signed, dated and stamped by each
party; emails are not accepted.
e. Abandonment of the cargo
o Communication to cargo interest and POL Agent
In case there is no positive response from either Shipper or Consignee after the time frame
stipulated in Letters A & B, then POD Agent will commence discussion, in close collaboration
with POL Agent with Principal on copy, the best option for RCL, so that empty equipment can
be returned as soon as possible to Container Yard.
In event the Shipper or Consignee has decided to abandon the cargo and disclaim their rights
on the shipment, POL / POD will send Abandon letter to the Cargo Interests for their
endorsement.
Each case needs to be settled within one year after vessels arrival date. If not possible, the
Agents must take the necessary actions to ensure that recoveries will be feasible afterwards.
All options have to be taken into consideration, always in accordance with the local
regulations.
o Communication to Liner Equipment/ Principal
Once the best option is chosen, it will have to be submitted to Liner Equipment Team for
approval
Locations need to get the approval from Liner Equipment prior update HOLD / send together
with letter from customs for considerations.
The equipment status should be correctly updated to hold status and RCL file reference
number (provided by Liner Equipment team) with approval from Liner Equipment team once
the matter reached local authority. The approval application to liner equipment team will need
to include letter from customs for consideration.
Usage of Abandonment letter: RCL Abandonment (not owner) is used in the case
which CNEE never accepted ownership of the cargo. RCL Abandonment (owner)
is used in the case which CNEE tried to clear but eventually abandon.
f. Extra expenses
RCL Agents are not authorised to appoint third parties and/or to make any payments related
to abandon cargo without Liner Equipment authority, at any stage of this procedure.
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Once a case is settled, RCL Agents will submit the standard Debit Note, which shows all the
extra costs that incurred, duly supported with vouchers. Given that everything is in order,
Liner Equipment team will send out their payment instructions, which will allow the RCL Agent
to proceed with the debit procedure.
Note: All debits/credits must be approved by the liner equipment team before
proceeding to F&A.
2) Recoveries
Agents are responsible for the follow-up of the recovery process against the liable party, because
all the costs that are incurred must be recovered, including Freight amounts / demurrage /
collateral expenses. For this reason, its very important to notify merchants at regular intervals,
emails are not enough.
Once that the charges, if any, is available or in situations where the containers' recovery is remote,
Agents is required to immediately send notice to the Shipper and Consignee respectively to seek
reimbursement. The following recovery procedure must be started.
Also, RCL Agents are not authorised to cease the recovery process without RCL Liner Equipment
team approval.
Legal procedure against the liable party needs to be approved by RCL Liner Equipment team.
Liner Equipment team must be monthly updated of the recovery process whether it has been a
success and any recovered amounts will be credited to RCL HQ F&A AR.
3) Responsibilities of the Agents
As this kind of situation invariably creates inter Agency tension due to the expenses that have to
be made by the Agent, please remember that in this respect:
A. Failure of the POL & POD Agents to comply with this procedure will burden them with the
prejudice that RCL may suffer due to excessive equipment demurrage or to the impossibility to
bring legal actions against the liable party.
B. If the POD or POL Agent committed, knowingly or unknowingly, an error or omission, then the
corresponding costs related to this error or omission will be addressed by the Agent directly to
his own Error and Omission / Professional Liability insurers for handling and settlement to RCL
HQ.
4) Total loss
Permission needs to be sought from Principal to update container's status as total loss.
In event that the container is subsequently returned to the Carrier, although in poor condition and
already declared total loss in system, Agent is required to assist/follow up to have the container
scrapped, re-condition according to the circumstances of the case. Monies for the scrap to be
credited to Principals' account.