What is damaged cargo and how should it be handled

How to avoid cargo damage?

For a typical international container transport, the list of parties that can physically handle the cargo looks like this:

• supplier/factory loading the goods;
• local carrier delivering the cargo to the warehouse;
• local freight company moving the cargo from the warehouse to the terminal;
• transshipment terminal;
• arrival port terminal;
• customs or bonded warehouse;
• local carrier in the destination country.

Cargo damage can occur at any stage of this process. To avoid cargo damage, it is important to properly pack and secure the cargo in the container, as well as choose reliable and responsible transportation companies. If damage does occur, it is important to document it and report it to the relevant parties immediately to ensure proper handling and resolution.

The most common causes of cargo damage are water damage, impacts, as well as damage due to improper securing and placement of the cargo in the container.

Water damage can occur due to the following reasons:

• condensation inside the container, especially if the container is loaded in high humidity;
• temperature changes during the transportation, which can also lead to condensation inside the container and wetting of the cargo;
• presence of small holes in the container;
• improper securing and loading, uneven weight distribution of the cargo in the container.

When the container is delivered to the consignee, they should conduct a thorough inspection to check for any visible damages. As soon as the unloading process begins, if there are any visible damages to the cargo, you should immediately stop the unloading process and inform your carrier and insurance company.

To claim for compensation from the carrier, you will need to submit the following documents:

• the first notice of intention to file a claim;
• survey report (if there is any independent survey report with photos or if any survey was conducted on behalf of and at the request of the shipper);
• photographs;
• commercial invoice from the shipper;
• detailed claim (calculation of losses based on the commercial value of the cargo);
• bill of lading;
• delivery receipt;
• container unloading tally sheet;
• proof of residual value/certificate of destruction (to prove that the cargo is indeed damaged and cannot be sold in the secondary market).

The carrier reviews the claim and determines at what stage of transportation the cargo could have been damaged.

If the damage occurred while the cargo was under the responsibility of the maritime carrier, they determine the amount of the claim and send a letter to settle the claim.

However, if it is found that the damage could have occurred for other reasons, such as improper loading, in the case where the carrier is not the party who loaded the container, the maritime carrier will not be held responsible. In this case, it is necessary to file a claim against other parties.

In addition, shippers or other interested parties involved in container loading must be informed about the following details:

• When placing goods on pallets, it is necessary to carefully inspect the space inside the container: if there are empty spaces between the pallets, they must be filled with air safety cushions or other means of filling the space.
• Weight inside the container should be evenly spread.
• Heavier items should not be concentrated in one side of the container.
• Lighter items should be placed on top of heavier items and the cargo should be packed as tightly as possible.

On average, it takes about 3-6 months to settle a claim for damaged goods. To protect yourself from the risks of damage, it is necessary to follow simple loading rules, and, more importantly, to cooperate with a reliable carrier who will help avoid incidents.