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There are so many different parties hadnling cargo during the shipment process, from the overseas factory until it is delivered to the final receiving point art destination. 

On a typical international cargo shipping route, below are the parties that may physically handle cargo:

  • The supplier/factory which loads the cargo;
  • The local trucker that delivers the cargo to a local warehouse;
  • The local dray company that moves the cargo from the warehouse to terminal;
  • The origin terminal;
  • The transshipment terminal;
  • The arrival terminal;
  • The customs or customs warehouse (if there is any customs hold);
  • The local trucker at the arriving terminal for final delivery.

 

REASONS FOR DAMAGE OF GOODS DURING TRANSPORTATION

If the load is not secured properly, it may be damaged during transportation. This applies to all types of cargo transportation: international air cargo delivery, cargo delivery by road or rail, container shipping by sea.

The most common causes of cargo damage are damage due to improper lashing and stuffing, as well as water damage, shock caused by another container.

If we are talking about sea freight, water damage can occur for the following reasons:

  • Condensation inside a container, especially if the container is being stuffed at high humidity temperatures.
  • Temperature changes during the voyage of the vessel may also increase the condensation inside the container, which may cause the cargo to get wet.
  • Water may get inside the container if there are any small holes on it, especially during the voyage if a vessel encounters inclement weather conditions.

Improper lashing and stuffing:

Extremely heavy cargo and uneven weight distribution, improper loading of the pallets, and poor lashing are some of the reasons for cargo damage depending on the cargo type, weight, and pieces. There are so many details when it comes to how to properly stuff a container and properly lash the cargo.

 

WHAT TO DO IF THE CARGO HAS BEEN DAMAGED DURING TRANSPORTATION?

When the cargo is received at the warehouse, a thorough inspection is needed. Check if there is any visible damage to the container from outside. Once the unloading starts, if there is any visible damage to the cargo, stop the unloading process immediately and notify your carrier and your insurance company, if the cargo is insured.

Your carrier might decide to send a surveyor to jointly unload the cargo if there is extensive damage is reported initially.

In order to claim the damage from your carrier, you will need to send the following documents to the carrier:

  • First Notice of Intent to Claim
  • Survey Report (If there is any independent survey report with photos, or if any survey was conducted for and on behalf of cargo interest)
  • Photos
  • Shipper’s Commercial Invoice
  • Detailed Claim Statement (The calculation of the loss, based on the commercial value of the cargo)
  • Packing List
  • Delivery Receipt
  • Container Destuffing Tally Sheet
  • Proof of Salvage Value/Independent Destruction Certificate (To prove the cargo is indeed damaged and can be sold on a secondhand market)

The carrier will review the claim and they will determine where the damage might have occured.

If the damage occurs when the cargo is under the responsibility of the ocean carrier, they will determine a claim amount and send a claim settlement letter to finalize the claim. However, if it is determined that damage may have occurred due to other reasons, such as improper stuffing, then they would deny it if they are not the party that stuffed the container. In this case you will need to file the claim with other parties.

 

WHAT TO DO TO PREVENT DAMAGE TO GOODS DURING CONTAINER LOADING?

Shippers or other stakeholders that are involved with the loading the containers must be educated on the below details:

  • The space utilization must be carefully checked for palletized cargo, and if there are any empty spaces between pallets, they need to be filled with airbags or other means of fillers.
  • The distribution of the weight inside the container needs to be even.
  • Loading heavier items on the side or at one end of the container must be avoided.
  • Stow the lighter items on top of the heavier items and avoid stuffing any loose item, and pack the cargo as tight as possible.

In average it takes about 3 to 6 months to finalize a damaged cargo claim.

 

In order to protect yourself from the risks of damage, be sure to take out insurance for each container, follow simple rules, and most importantly, cooperate with a reliable carrier. D.S.L. company takes full responsibility for the integrity and safety of your cargo during the entire time of its transportation.

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