The claim belongs to you, because you hold the contract with the factory and the rights under the shipping and insurance documents. Who you claim against depends on the cause: the factory for quality or quantity, the carrier for damage in transit, and your insurer for insured loss.
A good agent handles the factory side with you. They supply the evidence from production and loading, and keep pressing until the claim is settled.
Find the cause first
- Quality or specification problems, such as wrong grade, contamination or defects, are usually a claim against the factory.
- Short quantity found with an intact seal points to the factory or the loading, not the voyage.
- Damage from handling, water or a broken seal may be a matter for the carrier or your insurer.
- Problems with documents at your border may come from the factory, the forwarder or the paperwork your side supplied.
What to do on arrival
The first hours matter. Evidence fades quickly once goods are unpacked and moved.
- Photograph the container doors, the seal and the seal number before opening.
- Photograph the load as it stands, then the damaged or suspect goods.
- Note any damage on the delivery receipt before signing it.
- Keep the damaged goods and packing until the claim is settled, unless your insurer says otherwise.
- Take samples from the problem goods and keep them sealed.
- Tell the factory, your agent, and where relevant the carrier and insurer, in writing and quickly.
Settling the claim
Most factory claims end in one of three ways: a credit against the next order, a refund, or replacement goods. A credit keeps the relationship going but ties you to the supplier. A refund is cleaner if you plan to move. Agree the outcome in writing, with the amount, the date and what happens to the faulty goods.
Time limits
Contracts, insurance policies and carriage terms often set deadlines for giving notice of a claim, and some are short. Check your purchase contract, your marine insurance policy and the carrier's terms before the goods arrive, not after. Your freight forwarder, insurer or a lawyer can confirm the limits that apply to your shipment.
How the agent's evidence helps
A factory will often dispute a claim based only on photos from your warehouse. It is harder to dispute evidence from its own gate. Inspection reports, loading photos, seal numbers and sealed counter-samples show what left the factory. If the counter-sample passes and your sample fails, the problem arose after loading. If both fail, the factory shipped it. Read what is a counter-sample for how this works.
If the problem was found at inspection rather than on arrival, the process is different and simpler. See what happens if the goods fail inspection.
Next step
When a container arrives with a problem, we open a claim with the factory the same day, using our counter-samples and loading photos, and stay on it until it is settled. To talk through your shipments, book a free sourcing review.