Experienced People in the shipping industry are aware of the word Distressed cargo and who are new to Industry may be experiencing it. Here I am going to explain it.
It is the popular term used more in Bulk trades.
Few reasons for you why cargo is termed as distressed cargo:
- Sometimes buyer defaults on contract due to drop in commodity prices. For instance a buyer entered spot contract of purchase of Granite & Marbles. After loading it if prices of commodity decreases the buyer defaults on contract as it throws him in loss
- Engine failure is another form for distress cargo
- If a seller or buyer has left it too late for execution of the trade is another reason
- A ship is unable to unload cargo at right time due to bad weather
Such distressed cargoes are generally sold to buyers at low prices compared to original price. To avoid this type of cases shippers need to safeguard against shipping and freight frauds etc. Shippers should also ensure insurance for such incidents.
There is also chance of distressed freight just like distressed cargo, causes due to unable to meet customer’s requirements.
Connectcargo a unit of Jayem logistics is a freight forwarding company owned and managed by professionals with hands on experience in Logistics Management for over three decades. It has Ocean/ Air Freight Forwarding, Project (ODC) Forwarding, Customs Brokerage, Warehousing and Distribution, DG/Perishable transport. Experienced team in Connectcargo can reduce distressed cargoes through their strategy. Our understanding of different commodities & their needs to be serviced, give us the edge over the others when it comes to servicing our customer. Whether it be foreign nationals or small & medium enterprise, we ensure personalized quality service. To support us in our endeavor we have a state of the art web based IT system, which allows us receive and send real time access to our customers and our partners anywhere at any time.
Request a Quote or Call Us (044 – 4606 5555) to ship today