Strong Claims Handling Makes the Difference - 6 million dollars recovered.
Strong Claims Handling Makes the Difference - 6 million dollars recovered.
In the recent case our client was the Seller of 30,000 MT of milling wheat under FOB terms, governed by GAFTA 49 and English law.
From the very beginning, the Buyer tried to avoid proper performance of the contract. Our team stepped in.
During loading, the Buyer attempted to challenge the results of an independent surveyor, raising quality claims without contractual grounds. After loading was completed, the Buyer continued to delay payment, acting in clear breach of the contract and constantly searching for excuses to walk away from the deal.
Despite full and proper performance by the Seller, payment was not made. The Buyer went silent, avoided responsibility, and explored different ways to terminate the contract unlawfully.
The situation became even more complex once the vessel arrived at the discharge port. A separate dispute arose with the Shipowner regarding title to the goods, discharge, freight, and demurrage. At that point, the Seller was facing pressure from both sides — Buyer and Shipowner.
We conducted intensive claims handling, firmly defending our client’s contractual position:
• all buyer’s claims were successfully rejected;
• the buyer was properly and timely put into default;
• the shipowner’s demands were fully neutralised;
• title and delivery issues were resolved in the seller’s favour.
The result?
After weeks of firm legal pressure, the Buyer eventually fully withdrew all claims and paid almost USD 6,000,000 in one single payment for the goods.
No discounts. No compromises on principle.
Why This Matters for Traders?
In international commodities trade, problems rarely start with one big breach. They start with “small excuses”, delayed payments, artificial quality claims, and pressure tactics. If such situations are not handled correctly and decisively, they quickly escalate into major financial losses.
Need the Same Result?
If you are:
• facing a non-paying buyer,
• dealing with unjustified quality claims,
• stuck between a buyer/seller and a shipowner,
• generally trade within GAFTA and FOSFA frameworks - whether under FOB, CIF, or other terms;
Get in touch - https://www.bv-partners.org/contact-us
Strong legal strategy and active claims handling can turn a “lost deal” into a full recovery.
Your contract is only as strong as the way you enforce it.