This is an official declaration confirming that the cargo will be abandoned and that ownership has been released. Once the shipping company gets this they have several options of what they can do with the cargo:
- They can unpack the cargo and put the container back into service
- Relocate the container into a bonded storage area
- Auction and/or sell the freight (allowing them to pay off any accrued debt)
- Ship the cargo back to where it originated
- They can dispose of it (especially if it perishable or harmful)
- Of course this is all time consuming and adds unwanted cost to the shipping company.
Source: youtube.com
As I mentioned earlier, shipping containers can be abandoned for a wide array of reasons. The most common is the business went under or filed bankruptcy. Often when this happens many things get forgotten or overlooked, freight being one of the things to fall to the side.
Disputes are another common reason why freight gets unclaimed. These are usually between the shipping company and the customer, or with the freight broker, the freight forwarder, even the consignee.
