Shut Out

Shut Out refers to cargo that has already been declared for export to customs but, for various reasons, fails to be loaded onto the originally scheduled means of transport, is refused loading by the carrier or bumped, resulting in the cancellation of the export plan. Common scenarios include: the shipping company being overbooked, cargo arriving late, document discrepancies, customs inspection not being released, etc. In such cases, the shipper must complete shut-out procedures with customs, cancel the original customs declaration form, and the cargo may be converted to domestic sales, returned, or rebooked for the next voyage. Notes: Shut-out procedures must be completed within the time limit prescribed by customs, otherwise demurrage charges or fines may be incurred; shut out does not apply to cargo already loaded on board, which should go through the return or amendment process. Difference from "return shipment": Shut out means termination before actual export, while return shipment means shipping back after export has occurred. Difference from "rolling": Rolling is when the carrier proactively bumps cargo, while shut out may be voluntarily or involuntarily cancelled by the shipper. Difference from "rebooking": Rebooking means switching to another vessel to continue export, while shut out means terminating the current export.