One might think that after transporting freight and meticulously organizing it in a large warehouse, the tough part of being in the logistics industry would be out of the way. In reality, offering warehousing services can bring unique challenges, and managing abandoned freight is one of them.
Why does abandoned freight happen in the first place?
Abandoned freight occurs for a number of reasons. It happens at every link in the supply chain. Often, cargo is abandoned at ports because the consignee realizes they don’t have the necessary license to legally import the cargo in question. Consignees may also be surprised by the magnitude of import taxes and duties and refuse to accept the cargo. The unclaimed cargo is a nuisance, getting in the way of daily operations, so the contracting party is responsible for any accrued storage fees.
In warehouses, abandoned freight is just as problematic. It usually happens for different reasons, however. Typically, abandonment occurs when a customer can no longer afford to store their cargo and lacks the resources to pick it up and store it themselves. Sometimes, this is the result of poor planning or mismanagement, but it can also happen from sheer bad luck. Running a business is always a risk. One of the risks of storing large amounts of merchandise is that it’s a massive headache to figure out what to do with it if your company falls on hard times. Read more