Small business owner doing import/export got screwed by its shipping agent. What should he do to minimize his loss?

QUESTION.
I am doing importing business and have some problems with shipping companies. A month has passed since I was supposed to receive my package, and I still have not received it yet. I'm told the shipping company did not do all the proper paperwork and as a result my goods cannot clear customs. My goods sit in storage at present and there is a storage fee associated. The storage fee will be higher if someone does not move the package out of warehouse. Eventually the merchandise will be auctioned after 6 months if nobody takes action.

What can I do? Pay the storage fee by myself to get package first and then sue the shipping company for the loss? My business is on the US east coast and the shipper is on the US west coast.

ANSWER.
You answered your own question at the end of your email. You need to pay the storage and then sue the US company that is responsible. Your shipping documents should have their name and address on which to sue. Furthermore, since they ship to you in your home state they should be subject to suit there.

Personally, I think you should eat the exta cost you have suffered. The legal battle and costs will not be worth it to you. Write off the extra cost as an expense of doing business. There is no need to dig a bigger hole than you have already dug. Learn from your experience. You need to better research your business and how you run it so this won't happen again. Do you have a sound written business plan? It doesn't sound like it. If you did, then you would already know who was a reliable shipper, how much it would cost, and how dependable they were.

I hope my comments are helpful to you. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com