Disstressed Cargo Freight Is Not Cheap!

Disstressed Cargo Freight Is Not Cheap!

5/22/2014 Mine Yılmaz 1568 Times Read

Distressed cargo is a common term that you would come across in the shipping industry. A cargo can be deemed distressed if it falls into any of the following categories:

  • If a buyer refuses to honor the contract due to drop in commodities. For example if a spot contract was arranged for the purchase of coal at a certain price and if the price drops after the loading than the buyer stands to lose a substantial amount of money and hence they decide not to honor the contract.
  • When the seller or the buyer is too late in executing the trade under normal vessel and product scheduling time frames.
  • If the ship is unable to unload a cargo at a specified port due to unfavorable conditions like bad weather etc. the cargo is classified distressed is gotten rid of, before reaching the  next port.

These cargos are generally sold to interested buyers for a price lesser price. To avoid such incidents few shippers demand a full payment in advance. Distressed cargo causes a huge loss for both the carrier as well as the original shipper.
Larger companies can sustain these loses but an SME will be completely destroyed. FreightArea.com has come up with certain measures to counter these loses. With FreightArea.com, the shipper as well as the carrier can stay assured that the contract drawn will be honored completely.
FreightArea.com scrutinizes its clients as well as the logistics provider before brokering a deal to make sure both the parties are legitimate and can honor their promises to the last word. If you are a first time shipper and have no knowledge about the process, you need not panic because FreightArea.com as an ethical company will provide you with all the details you require. They will definitely go the extra mile to keep you delighted.