Unclaimed freight is lost cargo that has gone unclaimed by the owner. This can happen for a variety of reasons, such as the owner forgetting to pick up their shipment, or the owner not being able to pay for the shipping costs. Auctions are held for unclaimed freight so that the lost cargo can be sold to the highest bidder. These auctions are open to the public, and anyone can participate.
FAQs for Unclaimed Freight Auctions
Why is Freight Unclaimed, Lost, or Abandon?
There are many reasons why cargo may go unclaimed… Here are a few:
- The receiver did not order the shipment or they did not accept it.
- The shipping address was missing and there is no company contact, therefore it is deemed undeliverable
- If no disposition instructions are provided within 30 days of arrival or 10 days have passed from the arranged pickup date it is deemed unclaimed.
- All the paperwork related to the shipment is missing.
- The shipment has been sent and dropped at the wrong address.
- A dispute between the shipper and logistics provider led to added demurrage costs.
- When the buyer inspects the freight, they discover that it has been damaged during transit and refuse to accept it.
When is Freight Considered to be Lost, Abandon, or Unclaimed?
If the consignee does not accept or claim a container within 30 days of its arrival, the provider/freight forwarder can label it as unclaimed and take ownership of the contents. A container that isn’t moving is costing providers money, so they usually want to get rid of abandoned cargo as soon as possible. However, before deeming something abandoned, certain legal requirements must be met first.
The unclaimed goods may be destroyed, sent to a landfill, sold to 3rd parties, or auctioned off if the legal standards are met.
What Kind of Merchandise Goes Unclaimed?
Most unclaimed freight is commercial merchandise from large retail businesses, but some auctions feature lost luggage and other personal items. The type of merchandise varies depending on the auction, but you can usually find a wide variety of items up for bid.
How Do I Know if an Auction is Legitimate?
You can check with the Better Business Bureau to see if the auction company is registered and has a good rating. You can also look for online reviews of the company and the auction.
How Do I Find Out About Upcoming Auctions?
Auction companies typically advertise in local newspapers and on their websites. You can also sign up for email alerts from auction companies to receive notifications about upcoming auctions. Find lost cargo auctions here.
What Should I Bring to a Lost Cargo Auction?
You will need to bring a form of payment, such as cash, a check, or a credit card. You should also bring a valid photo ID, such as a driver’s license or passport. Some auctions require registration in advance, so be sure to check with the auction company for specific requirements.
What is the Difference Between a Live Auction and an Online Auction?
A live auction is held in person, and bids are made in real-time. An online auction is held online, and bids are made electronically. Both types of auctions have their advantages and disadvantages. Live auctions allow you to see the merchandise in person before you bid, but online auctions typically have more selection.
What are the Rules of Bidding on Lost Cargo?
Each auction has its own rules, so be sure to read the terms and conditions before you bid.
Generally, you will need to register for the auction in advance and make a deposit. The deposit is usually refundable if you do not win any bids. Bidding typically starts at a minimum amount, and each bid must be higher than the previous bid. The auctioneer will announce when the bidding is closed, and the highest bidder will win the item.
What Happens if I Win a Bid?
If you win a bid, you will be responsible for paying the full purchase price plus any shipping and handling costs. The auction company will provide instructions on how to pay for and receive your merchandise. You should expect to receive your merchandise within a few weeks.
If it is a live public auction, you may need to transport the merchandise the same day. If you can not, there will be a holding fee for each day the merchandise sits.
Can the Original Owner of the Abandon Freight Say Its Theirs?
The original owner does not have any legal recourse. The auction company is auctioning the merchandise based on its original shipping agreement with the merchandise owner. Typically a certain amount of time has surpassed for them to legally auction the freight. However, you should check with the auction company to be sure.
Are There Any Buyer Fees on Unclaimed Freight?
Some auction companies charge a buyer’s premium, which is a percentage of the purchase price that is added to the total. This fee is typically around 10%, but it varies depending on the auction company. There are also shipping and handling costs, which vary depending on the weight and size of the item.
What Happens if I Don’t Pick Up My Merchandise?
If you don’t pick up your merchandise, the auction company will either sell it to the next highest bidder or donate it to a charity. You will not receive a refund if you do not pick up your merchandise.
Conclusion
If you are interested in bidding on unclaimed freight, be sure to do your research ahead of time. Check with the auction company and the Better Business Bureau to make sure the auction is legitimate, and read the terms and conditions carefully before you bid. Remember that you will be responsible for paying the full purchase price plus shipping and handling if you win a bid, so make sure you are prepared to pay. With a little preparation, you can find great deals on unclaimed freight at auctions.