An internationally operating food company delivers 12 containers (324MT) of frozen food items to a debtor in Asia. The agreed payment condition is CAD via the bank. This has been going well for years.
After the goods arrive at the port, the debtor does not fulfill his payment obligations and the documents remain with the bank. Time is ticking by and the containers with goods have been in the port of destination for weeks now. This entails considerable demurrage and plug-in costs. The debtor eventually admits that he can no longer purchase the goods due to liquidity problems.
In joint consultation with us and the insurer, it was decided to resell the goods to a third party established in another country. The associated costs, including the resale loss, demurrage, plug-in costs and re-export costs, are ultimately reimbursed by the insurer on the basis of the covered percentage (90%).