JEDDAH, 2 July — The Council of Saudi Chambers of Commerce and Industry has warned Saudi importers against dealing with shipping companies of dubious reputation to transport goods. It advised traders instead to hire internationally accredited shipping companies saying this would ensure their goods arrive at the Kingdom’s ports safely and on schedule.
CSCI Secretary-General Osama Al-Kurdi said traders should avoid hiring old ships not known for operating regular maritime services and which continue to roam the seas calling at one port after another offering to carry cargo at reduced costs.
In the past, several Saudi importers have fallen prey to fraudulent practices by such shipping agents operating outside the Kingdom. Their shipments were either damaged or did not meet Saudi standard specifications; this resulted in huge losses to local traders.
Al-Kurdi said the CSCI had issued a white paper explaining the relevant international maritime law. The document outlines the terminology used in international trade regulations as well as amendments to the law. It explains the responsibility associated with risks, expenses and definition of goods shipped.
“This legal document is considered indispensable for maritime and land transport companies, banks, insurance firms and legal consultants. It advises importers on how to transact international contracts safely,” he said in a statement.
The document stresses the importance of studying carefully the provisions on bills of lading.
The provisions prohibit the seller from issuing new instructions to the shipping company during the voyage in order to guard against fraudulent practices and to prevent goods from being delivered to a party other than the original importer.
The document discusses different types of international trade contracts, especially those relating to maritime and land transport, while focusing on the transfer of responsibility of anticipated risks.
It urged local traders to acquire sufficient knowledge about contract documentation to avoid falling into mistakes that could make them incur additional burdens.
Al-Kurdi noted that some traders still use old terminology that has since been discarded and replaced with new terms governing international trade contracts.
