In January 2012, Ningbo Company placed a forwarding order with International Company for the consignment of garments, under which International Company was responsible for space booking and Ningbo Company handled inland transport and customs declaration. On 6th February 2012, ITSA issued an NVOCC bill of lading NGBSE021846 on which indicated: VESSEL/VOYAGE “XINXIAMEN”/ 1205W; DATE OF LOADING 6th February 2012; PORT OF DEPARTURE Ningbo Port and PORT OF DESTINATION La Spezia of Italy; SHIPPER Ningbo Company; CONSIGNEE GITEXSRL. Ala Company, who was the actual carrier, issued a sea waybill CNNB0564046. Ningbo Company paid 3175 CNY for the export local charge to International Company against which International Company invoiced Ningbo Company for the payment. However, the cargo concerned which arrived at the destination port on 2nd March 2012 has not yet been picked up till the date since the consignee refused to take delivery. International Company has sent emails requesting the Claimant to handle the cargo, but Ningbo Company does not take any disposal measures or obtain the NVOCC bill of lading from International Company.

On 18th October 2012, Ningbo Company filed an action with Ningbo Maritime Court against International Company, requesting the court to rule: (1) the Defendant to instantly return the cargo worth 142,524 USD to the Claimant (in case of a failing return, a monetary compensation of 896,418.95 CNY shall be made based on the CNY/USD central parity rate published on 10th October 2012); AND (2) the Defendant to return 3,175 CNY of the local charge. International Company defended: (1) the Defendant was not a proper subject to face the claims since it was ITSA that issued the NVOCC B/L in the subject case; (2) the Defendant had actually performed the obligations required of a forwarder and had no faults of its own; (3) the Claimant had no right to claim for compensation for cargo losses since the cargo held up at the destination port for non-pickup remained in the ownership of the Claimant. The Defendant requested the court to overrule the Claimant’s claims.

On 28th November 2012, International Company handed over three original copies of the NVOCC bill of lading NGBSE021846 to Ningbo Company before the court, but the latter rejected the Bs/L. International Company then submitted the three original copies of the bill of lading to the court.

On hearing the case, Ningbo Maritime Court held that: the Defendant as the forwarder had received the local charge after performing the obligation of space booking and other forwarding services and had invoiced the Claimant for such charge. That means, the Claimant and the Defendant were bonded by a forwarding agreement. Since the cargo held up at the destination port for non-pickup did not become lost and the Defendant had handed over the B/Ls before the court, the Claimant had the full right to disposal of the cargo concerned. The obligations expected of the Defendant as set forth in the forwarding agreement had been completely fulfilled after the Defendant made shipping arrangements for the carriage of the cargo concerned from Ningbo port to La Spezia. The Claim’s request for handing back of the cargo involved return procedures, which was not the Defendant’s obligations under the forwarding agreement. In the absence of sufficient evidence and solid grounds, the court overruled the Claimant’s claims for return of the cargo or monetary compensation for cargo loss. The court also overruled the Claimant’s claim for the return of local charge since the cargo concerned had been carried to the destination port and the Defendant had the right to collect such charge. Although the NVOCC B/Ls were not handed over to the Claimant in a timely manner, the Claimant did not make complaints for whatever loss or monetary loss that it had suffered for such delay, the court therefore did not examine the case in this respect. In summary, according to Article 64 Paragraph 1 of the Civil Procedure Law of the People’s Republic of China, the court overruled the claims raised by the Claimant Ningbo Company.