If goods arrive damaged, you record the damage on delivery, keep the goods and packing, and notify your insurer, the carrier and the supplier in writing straight away. A surveyor, usually appointed by your insurer, then inspects and reports on the cause and extent of the loss, and the claim is settled under your insurance policy or against whoever was responsible.
Time limits are short and strict. This is general guidance, not legal advice: your insurer or a lawyer can tell you the exact steps and deadlines for your case.
First steps on arrival
- Do not refuse the container without advice. Accept delivery but write the damage on the delivery receipt.
- Photograph the seal, the doors, the inside before unloading and each damaged bag.
- Stop unloading if damage is serious, and call your insurer's surveyor.
- Keep damaged goods and packing separate. Do not throw anything away.
- Send written notice to the carrier and forwarder quickly. Carrier notice periods for damage not visible at delivery can be just a few days.
- Tell the supplier in writing, and send them the photos and any survey findings.
Who pays
If you have cargo insurance and the cause is covered, your insurer pays you and may then recover from the carrier. If you have no insurance, you claim against the carrier yourself. Under the sea carriage rules most bills of lading follow, the carrier's liability is limited per package or per kilo, and there are many defences. The time to start legal action against the carrier is often one year from delivery. Your insurer will want you to protect that right, so do not sign anything that waives it.
If the damage comes from the goods themselves, such as mould from wet cargo, it is usually a quality claim against the supplier rather than a transport claim. See how to handle a quality claim.
General average
If the ship faces an emergency, such as a fire, and cargo or the ship is sacrificed to save the voyage, the shipowner can declare general average. All cargo owners then share the cost, even if their goods are fine. You must give security before your cargo is released. Your insurer usually provides it. See marine cargo insurance.
Evidence that wins claims
- Loading photos and report showing clean, dry goods and container.
- Pre-shipment moisture and quality results.
- Seal number records at both ends.
- Surveyor's report at destination.
- Bill of lading, packing list, invoice and policy.
How we help
Our loading report, photos and moisture readings show the condition of the goods when they left India, which insurers and suppliers ask for first. We also help you put the claim file together and deal with the supplier. Ask for a free sourcing review.