Unpaid Shipping Fees: Freight Forwarder Liable for 4,534 Yuan Despite Third-Party Payment Clause

A court in southern China has ordered a freight forwarding company to pay 4,534.92 yuan in unpaid shipping fees to FedEx after the third party designated to pay failed to do so.

On January 6, 2010, a freight forwarding company entrusted FedEx to air ship ceramic mosaic tiles weighing 229.5 kilograms to South Korea. The air waybill specified that a third party would pay the charges. FedEx delivered the shipment on January 8, 2010.

FedEx issued an invoice on January 13, 2010 for 4,104 yuan in freight and 430.92 yuan in other charges, totaling 4,534.92 yuan, due by February 12, 2010. The third party never paid. Despite repeated demands, the forwarding company made no payment.

FedEx sued for the unpaid amount. The defendant did not appear at the hearing.

The court held that the air cargo contract was valid and binding. Although the contract designated a third party to pay, under contract law, when a third party fails to perform, the contracting party remains liable. The forwarding company, as the shipper, bore the obligation to ensure payment.

The court ordered the defendant to pay 4,534.92 yuan within ten days. The case acceptance fee of 25 yuan was assessed against the defendant.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.