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Can I get compensation for a missed delivery?

by Mike Bellamy

We were told the delivery of the shipment on our order was 30 days and it made 60 days. Are we allowed any compensation? How can we claim it? Of course the supplier is unwilling saying he is not the shipping company. our contract was clear buy and deliver from the supplier side. 

I am glad to see you were wise enough to put the delivery dates in the contract. Many buyers forget that. But for the contract to have teeth, it would have been even better to have stated specific penalties for crucial terms, such as shipping date or quality specifications. As mentioned here. 

Based on your question, I am assuming the contract you had did not state the penalty. But there is still hope for you to receive compensation. This blog post outlines the options and steps in more detail, but here is a quick overview.

Do you wish to do business with this supplier in the future?

If yes, I suggest you leverage future orders to get some kind of compensation.

If no, consider engaging a lawyer or debt collection agency.

If the damages caused by the missed delivery date are less than 4000 USD, it may be hard to get a lawyer or collection agency interested in representing you. But if your loss is substantial, here is a typical scenario: 

a)      Chinese language demand letter is sent from a China based lawyer to grab the seller’s attention and let them know this is serious.

b)      If the seller does not offer reasonable compensation the case can go to court.

Related content/resources:

Resolving a dispute: Demand letters and legal options

Video 10: Resolving a Dispute

If you would like introductions to lawyers and such, please check out where I keep a list of endorsed service providers who have done a good job for me on similar cases.

BTW, do not forget about This is a free service where you can explore a bad supplier and warn other buyers.

Let me know how things work out for you.

Question answered by Mike Bellamy, an Advisory Board Member & Featured Blogger at the not-for-profit China Sourcing Information Center. Mike is also the author of "The Essential Reference Guide to China Sourcing" and founder of PassageMaker Sourcing Solutions.


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