UAC Flashcards
What does UAC stand for?
Uncleared and Abandoned Cargo
After LFD, How many days will it take for dry cargo to be turned over to UAC?
60 days
After LFD, how many days will reefer cargo be turned over to UAC? (frozen)
20 days
After LFD, how many days will reefer cargo be turned over to UAC? (frozen)
1 day
UAC team objectives
Prevent container from being abandoned
Identify trends for UAC & move to prevent
Free container stuck at POD
Ensure collection of charges & penalties
Create proper relationships with ports, governments, associations, & people that could help solve UAC cases
UAC Process Overview
1)POD: container discharges, tell notify/consignee not picked up, summary of charges
2)Notify POL
3)Ask POL to tell shipper & freight forwarder
Why is cargo abandoned?
Customs block import (commodity not accepted/documentation not completed)
Cargo buyer is in economic distress
Merchant fraudulent behavior
LOA
Letter of Abandonment
What does LOA do?
Gives rights to cargo to MSC to decide how to dispose (merchant still has to pay freight & fees)
DRV
Depreciated Replacement Value
What does the DRV of a container mean?
est cost of replacing it with equipment of similar kind, utility, & condition
Financial Settlement
agreement made between merchant & GVA after negotiated charges accrued, goal is to cover fixed costs (anything paid in recovering container)
How does UAC prevent cases?
Monthly prescreening & preventative “investigations”
OVA provides suspicious bookings report (agent run an investigation to determine if bookings are genuine or need different actions)
Check relationship with customer, customer awareness, commodity & POD restrictions
What are the options for settlement?
Offer discount from GVA liner
Consignee change
re-exportation
warehouse de-stuffing
salvage/destruction
public auction
legal action
donation
financial settlement
total loss
When is UAC handling fee applied?
When customer provides LOA or
When customer has been unresponsive/does not provide case resolution plan
