Freight Forwarder Penalized with USD 10,000 Dead Freight Fee and Public Apology for Unauthorized Client Contact
In the freight forwarding industry, integrity and compliance with cooperation rules are the foundation for maintaining order and safeguarding the rights of all parties. Recently, the platform handled a typical case of reverse sales: a forwarder ignored cooperation principles, acted without authorization, and not only incurred a significant financial loss but also damaged professional credibility. This case serves as a stern reminder to all platform members: reverse sales will not be tolerated.
Case Review: Ignoring Rules, Facing the Consequences
In this case, Company A (the principal) entrusted Company B (the operator) to handle the transportation of a 40’HC container after confirming the freight rate. B coordinated with the shipper to arrange loading. However, the cargo requirements changed, and the shipper specified that only a 45’HQ container could be used.
A requested a new quote for the 45’HQ container, but B’s offer was significantly higher than the market rate, prompting A to reconsider the cooperation. A then gave explicit instructions: do not book the 45’HQ space until A secured the consignee’s approval for the revised cost. Furthermore, A stressed that since this was its designated cargo, B was strictly prohibited from contacting the consignee directly.
Despite this clear instruction, B violated the cooperation boundary and directly contacted A’s client at the destination. Worse still, B later informed A that they had bypassed A’s authorization, communicated directly with the consignee, and booked 1×45’HQ space without consent. B shared the booking information directly with both the shipper and the consignee.
Ultimately, the consignee backed out and chose to ship with another forwarder. As a result, B was forced to cancel the previously booked 45’HQ space, incurring a USD 10,000 dead freight fee.
Platform Ruling: Zero Tolerance for Reverse Sales
Following an investigation supported by the carrier’s official billing documents and in accordance with Article 13 of the Platform Member Cooperation Guidelines regarding reverse sales and the protection of principals’ rights, the platform ruled as follows:
1. Company B’s direct contact with the consignee and unauthorized booking constituted a clear case of reverse sales, a serious violation of the cooperation guidelines, and disruption of industry order.
2. The resulting cancellation of the 45’HQ booking and the USD 10,000 dead freight fee shall be borne entirely by Company B. Company A is not responsible for any related costs.
3. Company B must issue a formal apology to Company A for the violation and compensate for the disturbance caused. In addition, the platform has suspended B’s Member Identity for three months.
The platform reiterates its zero-tolerance stance toward reverse sales, which undermine fair competition and harm principals’ legitimate interests. As stipulated in the guidelines, members found engaging in reverse sales face suspension of their Member Identity for one to three months. During suspension, the member loses access to all Member Benefits, including Business Opportunity Matching, Accurate Matching, dispute resolution, and more. Furthermore, such violations are recorded in the platform’s credit archive, seriously affecting future cooperation opportunities.
Important Reminder: Use Risk Alerts to Mitigate Risks
This case highlights the importance of proactive risk management. To help members better protect their interests, the platform strongly reminds all to make timely use of the Risk Alerts function. By subscribing to updates on your partners, you can receive real-time notifications if they are suspended or blacklisted.
This function is critical: if you conduct business with a suspended member, any disputes will not be covered under the platform’s Cooperation Risk Protection, exposing you to financial loss and legal challenges. Therefore, subscribing and monitoring partners’ status is a key step in safeguarding your cooperation.
Risk List-JCtrans Risk Control Guideline
The healthy development of the freight forwarding industry relies on every practitioner’s respect for rules and commitment to integrity. The platform will continue to strengthen oversight, crack down on reverse sales, and foster a fair, safe, and reliable cooperation environment. All members are urged to draw lessons from this case, strictly follow cooperation guidelines, and work together to uphold the integrity of the industry.
