A Chinese exporter signed a CIF contract with a foreign importer. Payment was to be made by irrevocable sight L/C. Both the contract and the L/C prohibited transshipment. Within the validity of the credit, the exporter shipped the cargo on board a liner sailing direct to the port of destination, and presented the direct B/L for negotiation. Later the foreign issuing bank also made payment against the direct B/L forwarded by the negotiation bank. However, in order to collect some other cargoes, the carrying vessel unloaded the cargo at an intermediate port without authorization. The cargo was instead reloaded onto an old vessel, and thus arrived at the destination two months late. As a result, the buyer lodged a claim against the Chinese side for fraud, since the cargo was actually transshipped even though the direct B/L was issued. Finally the exporter accepted the claim and made compensation as requested, as he thought that he, as the person booking the vessel, should be liable for the carrier's unauthorized transshipment. (1) Do you think the settlement of this case appropriate? (2) Who should bear the loss? Why? (3) Whose fault in this case? Why? (4) What should the seller do?