A chemical leakage claim succeeds or fails on evidence and notice. You need proof of the condition of the cargo at loading, proof of the damage on arrival, and written notice to the carrier and insurer within the time limits. Liability then turns on who packed the goods and under which Incoterm.
This is general guidance, not legal advice. For a live dispute, speak to your insurer, a marine surveyor and a lawyer. Time limits are short, and the carrier's bill of lading terms will name them. Keep the contact details of an independent surveyor and your insurer's claims line with the shipping file before the container sails, so nobody searches for them while a leaking container waits at the terminal.
What evidence should you collect before shipping?
- Photographs of the empty container, each layer of cargo, the lashing and the sealed doors, with the seal number.
- A loading report or survey showing drum or IBC condition, marks and count. See the loading survey for bulk chemicals.
- The certificate of analysis, UN packaging marks and the dangerous goods declaration, which prove what was shipped and how it was packed.
- A retention sample from the batch, kept by the supplier and by you.
What should you do when the cargo arrives damaged?
Do not open the container before taking photographs of the seal and doors. Note any damage on the delivery receipt, and give written notice of loss or damage to the carrier. Under the Hague-Visby Rules, which many bills of lading follow, notice is due at the time of removal or, if the damage is not apparent, within three days. Check the rules that apply to your bill of lading.
Appoint an independent surveyor to inspect the cargo and prepare a report. Do not dispose of leaked material or damaged packaging without advice, because a leak may also trigger environmental or safety duties at the port or warehouse. Our guide to what to check when a chemical shipment arrives lists the steps.
Who is liable when a chemical shipment leaks?
It depends on the cause. If a drum was defective or poorly closed, the packer, normally the shipper, is usually responsible. If the carrier mishandled the container, the carrier may be liable within its limits. A leak that damages other cargo can lead to claims from third parties, and a misdeclared dangerous goods shipment puts liability on the shipper.
The Incoterm decides who bears risk during which part of the journey: see FOB, CIF or DAP. Quality problems that are not leaks follow a different route, covered in handling a chemical quality claim.
Does insurance cover a chemical leak?
Marine cargo insurance usually covers loss of or damage to the goods, but terms vary, and some policies exclude pollution clean-up, inadequate packing or delay. Read the cover for chemicals and dangerous goods specifically, and report the claim promptly. See insurance for chemical shipments.
How we help
We reduce the chance of a claim by checking packaging and supervising loading, and we keep the records that support one. To set this up before your next order, book a free sourcing review.