Who will bear the cost of temporary port change for sea freight, and how can the seller agree on their rights and responsibilities in advance？
The cost of temporary change of port (port of origin/destination) for sea transportation shall be borne by the responsible party, and the core is that the seller shall bear the full price of the change of port voluntarily; Sellers who change ports due to shipping company/port reasons are exempt from operating fees; Both parties shall reasonably share the burden of force majeure. It is necessary to write down the rights and responsibilities, cost details, and upper limit in the contract beforehand to avoid being overcharged afterwards.
1、 Types of Port Changes and Cost Allocation Rules (Legal+Industry Practices)
1. The seller voluntarily applies to change the port (responsible party: seller)
Scenario: Seller temporarily changes destination port, wrong port, inventory adjustment, customer requests to change port.
Cost: The seller shall bear the full amount, including: manifest modification fee, customs declaration modification fee, container transfer fee, route price difference, demurrage/storage fee, and emergency surcharge.
Amount: Port of departure changed to $200- $500 per container; Change the destination port to $500- $1500 per container, with higher prices during peak seasons.
2. Mandatory change of port by shipping company/port (responsible party: shipping company/port)
Scenario: Port congestion, strikes, dock closures, ship companies skipping ports, route adjustments, and container switching after unloading.
Cost: The seller is exempt from handling fees and the difference in shipping fees, and only bears the basic costs of customs clearance and delivery; The demurrage/storage fees shall be borne by the shipping company.
Case: Due to congestion in Los Angeles, the shipping company changed the port to Oakland, and the seller did not need to pay the port change fee, only bearing the local customs clearance fee in Oakland.
3. Force majeure change of port (responsible party: neither party is responsible)
Scenario: War, strike, extreme weather, Red Sea crisis, Suez Canal congestion, port blockade.
Cost: Reasonable sharing: The shipping company shall bear the port change operation fee and route price difference; The seller shall bear the demurrage/storage, transportation, and additional insurance fees.
Attention: Shipping companies are not allowed to overcharge, alternative ports must be reasonable, otherwise the seller may refuse to pay unreasonable fees.