Court: Guangzhou Maritime Court (2025)
Facts: A Zhongshan lighting company (plaintiff, a Guangdong industry cluster enterprise) engaged a forwarder (defendant) for CFR Melbourne shipment of lighting products. Upon arrival, the Australian buyer refused to take delivery due to market changes, causing the goods to be stranded with high storage and detention charges. The forwarder advanced these costs and sued the plaintiff for 120,000 RMB; the plaintiff argued the buyer should bear them.
Holding:
(1) Forwarding contract liability: the forwarder performed its agency duties and may recover necessary advances from the principal (plaintiff);
(2) Destination abandonment risk: under FOB/CFR/CIF, after the seller completes delivery, the risk of destination abandonment generally rests with the buyer, but the seller as shipper must assist;
(3) Reasonableness review: the court found the advances reasonable and ordered the plaintiff to pay 120,000 RMB plus interest.
Significance:
· Clarifies rights and obligations between forwarders and principals, helping Guangdong exporters choose forwarding services;
· Reminds exporters to contractually address destination abandonment to reduce extra costs;
· Reflects the maritime court's regulation of the freight forwarding industry, promoting healthy cross-border logistics.