SCLA | Supplier use cases of Cancellation Fees

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As the Supplier, do I need to meet any requirements to request a Cancellation?

Please check out the related article: SCLA | The Supplier of a Leasing Deal is requesting a Cancellation, which requirements need to be met?


Cancellation fee use cases for Suppliers

  1. I created a Release Reference with a validity of less than 14 days, will there be storage fees applied?

    • Storage fees will not apply. If the release gets extended, then there will be applicable Storage Fees that will start after the 14 free days.

    • If the user does not pick up the units during this 14-day free period and also does not ask for a new Release, then the supplier can request a ❌ Cancellation.

    • After the 14 free days have passed, the supplier should send a final 14-day deadline in the leasing deal's chat.

    • After both the 14 free days + 14 final deadline days have passed (a total of 28 days), the Supplier can cancel the deal and the User would have to pay a Cancellation Fee.

  2. I accepted a leasing deal for a total quantity of 10 units, but I only released 5 units, and the user has not picked them up.

    ➡️ Now, I need to cancel the deal (within the 14 free days) ❌ do I need to pay the Cancellation Fee for all 10 or 5 units?

    If the supplier cancels within the 14-day free period, the supplier shall pay the Cancellation Fee for 10 units. 

  3. What happens if the Release Reference is unknown in the depot, and the user can't pick up the units, who pays the Cancellation Fee?

    1. According to the Standard Container Leasing Agreement 

      • Sub-clause 12 (d) (ii) would be breached by the Supplier (if an invalid Release is provided).

      • The user shall give the supplier a 24-hour deadline to provide a valid Release, and if the user does not receive one, the user can cancel ❌ the Deal and the Supplier shall pay the Cancellation Fee.

  4. It’s been 30 days since I created the release, and the user has still not picked up the units. ➡️I would like to cancel the deal, can I do this right away?

    • No. The supplier needs to give a final 14-day deadline before we can process the cancellation.

    • If the user clearly states that they can't pick up the units, according to Sub-clause 12 (c) (i) then the deal can be canceled right away ✅

  5. I created a valid permanent Release Reference. Can I, the supplier, still give a 14-day deadline and then cancel the deal along with its Cancellation Fees?

    Yes, a 14-day deadline notice can stop the validity period of the Release Reference. The supplier can give this deadline after 14 free days have passed.

  6. It has been 17 days since I created the Release, but the user requested an extension. But now I need to cancel the deal, how can I do this?

    • If you as the supplier provided a valid Release and a pick-up deadline of 14 days (after the standard minimum of 14-free-days) and the user did not pick up the units within that time, the supplier can cancel the deal and request the Cancellation Fees from the User.

      • Worth noting that the supplier needs to provide a valid Release to the User. If this does not happen, then the User can cancel and will receive the Cancellation Fee.

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