Case of Freight Payment Dispute Between UK Company and Chinese Company
A Chinese logistics firm stopped paying accrued freight owed to a UK forwarder despite an installment plan; the court enforced payment of €120,000 plus interest.
Cooperation history
Since 2018, a Chinese transportation company has engaged a UK company to handle freight services across European countries and within the UK. Both parties consistently conducted business coordination and freight settlement via email.
The initial phase of cooperation proceeded smoothly, with the Chinese company making regular freight payments.
Default on freight and breached repayment plan
In April 2023, the Chinese company abruptly refused to pay the due freight charges, citing operational difficulties.
After multiple negotiations, both parties agreed to an installment repayment plan: starting in May, the Chinese company would pay 20% of the outstanding freight charges monthly — €20,000 per month — over six months. However, the Chinese company subsequently failed to fulfill its payment obligations under any repayment schedule.
Outcome
The UK company engaged SuitWin China Law Firm to handle the case. Following adjudication by the Beijing No. 4 Intermediate People's Court, the Chinese shipping company was ordered to pay the UK company €120,000 in freight charges plus corresponding interest.