When cargo is subject to large-scale inspections, return shipments may not be the only source of pressure for freight forwarders. Demurrage, detention, inspection, and other charges can continue to accumulate, while delayed customer payments create additional cash flow pressure. A Shenzhen freight forwarding company recently disclosed that since the first large-scale inspection of its cargo on June 17, a total of 111 containers have been inspected, 38 of which must be shipped back. The company has incurred losses of more than RMB 10 million and has over RMB 9 million in outstanding receivables. For freight forwarders involved in international transportation, cross-border logistics, and freight agency services, the key issue is not only the scale of the figures. When cargo encounters problems, the freight forwarder may have to cover the costs before receiving payment from the customer.

Key Highlights 

• Containers inspected: A total of 111 containers were inspected, with 38 requiring return shipment. 

• Financial impact: The company reported losses exceeding RMB 10 million and outstanding receivables of more than RMB 9 million. 

• Additional charges: Return shipments may generate demurrage, detention, inspection, and other related costs. 

• Cash flow pressure: The longer it takes to resolve cargo problems, the greater the financial pressure on the freight forwarder.

Costs Continue to Rise as 38 Containers Must Be Shipped Back

According to an open letter published by the company on August 24, a total of 111 containers were inspected, with 38 requiring return shipment. Five containers have already been loaded onto a vessel for return, while another seven remain under inspection. The remaining containers have been released and scheduled for delivery.

For freight forwarders, an inspection is often only the beginning. If cargo must ultimately be shipped back, additional arrangements may be required for transportation, warehousing, inspections, and terminal handling. These procedures may generate demurrage, detention, inspection fees, warehousing charges, and return-shipment deposits.

The company disclosed that it had already paid approximately RMB 2 million in return-shipment deposits, while the return process was still underway. Although the cargo has not yet been fully handled, a substantial amount of the freight forwarder’s funds is already tied up.

Customer Payments May Stop Before the Cargo Is Fully Handled

The figures disclosed in the open letter show that cargo-handling costs are not the only source of pressure.

The company said its cumulative losses had exceeded RMB 10 million. Approximately RMB 3.8 million in freight charges remained unpaid for cargo that had already been released and delivered, while total outstanding receivables had exceeded RMB 9 million.

This is a common problem for freight forwarders when shipments encounter problems: the cargo requires immediate action, but customers may not make the corresponding payments at the same time.

Under normal circumstances, freight forwarders can collect freight charges at agreed stages. When cargo is inspected, returned, or detained, however, charges from carriers, terminals, warehouses, and other service providers may continue to accrue. If a freight forwarder covers these costs for an extended period, the risk associated with individual shipments can develop into company-wide cash flow pressure.

Freight forwarders should therefore consider not only standard transportation costs when preparing quotations, but also potential disruption-handling costs and working-capital exposure.

Tighter U.S. Inspections Require Freight Forwarders to Reassess Risk

The incident is not an isolated case. Inspections on U.S.-bound shipments have reportedly become more stringent, including increased scrutiny under inspection categories such as 5H, 9H, and 2R. This has added to the cargo-handling pressure faced by some freight forwarding companies.

The industry has previously seen freight forwarders encounter operating difficulties after containers were inspected, cargo was held, and cash flow came under pressure. The inspection itself is not necessarily the greatest risk. The more serious problem arises when large numbers of containers encounter issues at the same time and the resulting costs are concentrated on the freight forwarder.

For high-volume shipments, high-value cargo, and long-term projects, the parties should establish in advance who will bear inspection costs, how return-shipment expenses will be allocated, when customer payments are due, and how cargo problems will be handled.

Overseas agents and business partners should also pay attention to financial risk. Cross-border logistics involves multiple parties, and prolonged advance payments by one party can ultimately affect the stability of the entire supply chain.

The main concern raised by the 111-container case is not the number of containers itself, but the financial risk it reveals. Cargo problems can be handled, but an uncontrolled build-up of tied-up funds may affect a freight forwarder’s operations more quickly than the cargo issue itself.

Sources and Disclaimer 

Sources include the company’s open letter and other publicly available industry information. This article is provided solely for reference by the international logistics and freight forwarding industry. Please refer to the latest notices from the company and its customers for current information.