The complete process of international maritime cargo damage claims primarily includes evidence preservation, liability determination, and compensation standard determination.
In this article, Weefreight will provide a detailed explanation, hoping it will be helpful.
Evidence Preservation
Promptly Notify Relevant Parties: Upon discovery of cargo damage at the port of destination, immediately request an inspection from the inspection and claims agent specified in the insurance policy. If any missing or noticeable damage is found, obtain a cargo damage certificate from the carrier, consignee, or relevant authorities, such as local customs or port authorities.
Collect Relevant Documents: Preserve the transport contract, bill of lading, insurance policy, commercial invoice, packing list, weight list, etc. These documents are crucial for proving the transport relationship and the condition of the cargo.
Photograph the Damaged Cargo: Take clear photos of the damaged cargo from all angles and locations, documenting the condition and extent of the damage. Record a video if necessary.
Obtaining an Inspection Report: Request a professional inspection agency to inspect the damaged cargo and issue a detailed report detailing the cause, extent, and quantity of the damage.
Preserve communication records: Emails, text messages, and phone recordings with relevant parties, such as the carrier and insurance company, to help track the progress of the issue and clarify the responsibilities of all parties.
Determining Liability
Determining the Cause of Loss: Using the inspection report and other evidence, analyze the cause of the damage, such as inherent quality issues with the cargo, improper packaging, bumps and collisions during transportation, or inclement weather.
Determining Liability: If the cargo is “originally damaged,” meaning it was damaged by the shipper before loading, liability generally rests with the shipper. This falls under the insurance policy’s exclusions, and the insurer generally does not compensate. If the cargo is “ship damaged,” meaning it was damaged due to the vessel’s unseaworthiness or improper crew operation, liability rests with the carrier. “Workman’s damage” refers to damage caused by improper handling during loading and unloading, and liability may also rest with the carrier or the stevedoring company.
Review of Insurance Coverage: The insurance company will determine whether the cause of the cargo damage falls within the insurance coverage, whether it occurred within the insurance period, and whether the claimant has an insurable interest. If the cargo damage is caused by a cause within the insurance coverage, the insurance company will bear the compensation liability; if it falls within the excluded liability, no compensation will be paid.
Compensation for Cargo Loss: According to the Maritime Code, compensation for cargo loss is calculated based on the actual value of the cargo. The actual value of the cargo is calculated based on the cargo’s value at the time of shipment plus insurance and freight. Any expenses underpaid or waived due to the loss of the cargo should be deducted from the compensation.
Compensation for Cargo Damage: Compensation for cargo damage is calculated based on the difference in the actual value of the cargo before and after damage, or the cost of repairing the cargo. If the cargo depreciation rate is used, the cargo damage amount is determined by subtracting the sales value of the damaged cargo from the undamaged market value at the destination port, and then dividing the result by the undamaged market value.
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