Court ruling confirms shippers’ insurance liability

Agent bound to protect interests of principal not customer A RECENT court confirmation of a previous precedent warns exporters/importers to take suitable steps to safeguard themselves sufficiently in export shipping. This, Andre Erasmus, senior manager at trade and customs consultants Deloitte, told FTW, was the result of the Supreme Court ruling on the case between Mediterranean Shipping Company (MSC) and Tebe Trading on March 20. “The court,” he said, “had to decide whether the exporter could successfully sue the carrier’s agent for failing to take reasonable steps to prevent economic loss suffered by the exporter.” But this case failed, and – in ruling against the exporter, Tebe Trading – the court ruled that agents were contractually bound to protect the interests of their principals and not their customers. “This case again confirms the principle that the exporter/importer and not the clearing agent and freight forwarder, is liable for any losses or charges and duties,” added Erasmus. “All importers and exporters therefore need to ensure that they comply with the Customs and Excise Act provisions and are sufficiently insured against any losses.”