How to be ahead of cargo claim game with first notice of loss

A loss or damage notification is a written word to the carrier about the loss or damage discovered at the time of unloading.

Cargo loss or damage notice  DOES NOT CONSTITUTE A FREIGHT CLAIM, it is only one document required in the claim submission process.

Be Aware of the Preliminary Notice of Claim

The Hague and Hague/Visby Rules art. 3(6), states: 

Unless notice of loss or damage and the general nature of such loss or damage be given in writing to the carrier or his agent at the port of

discharge before or at the time of the removal of the goods into the custody of the person entitled to delivery thereof under the contract of

carriage, or, if the loss or damage be not apparent, within three days, such removal shall be prima facie evidence of the delivery by the carrier of the goods as described in the bill of lading.

This notification legally puts the burden of proof on the shipping line to prove that cargo damage or loss was not caused by the carrier’s negligence,  serves as a protest in due form, and acts as a timely survey invitation.

Remember, that 99 times out of 100 carriers will not attend the joint surveys. Treat the first notice of loss as a formal – good to comply with legal procedure, and do not wait for the shipping line to respond or reply to you.

What Should be Included in the Notice of loss?

Contact Details: 

Claimant’s full name, company name, email address and contact number. 

Shipment Information: 

Vessel & Voyage 

Booking number

Bill of lading number

Shipper name

Consignee name

Origin or port of load

Destination of port of discharge

Container number(a)

Cargo description

Cause of loss or damage to cargo

Quantity lost of damaged 

The estimated value of loss or damage, or, 

The estimated value of repair or replacement in the case of repackaging

Below is an example of a Claim Notification Letter to a Carrier

Date

Attention: Claims Department

Name and address of the carrier

Re: Vessel / Voyage

Booking number

Bill of lading number

Shipper name

Consignee name

Origin or port of load

Destination of port of discharge

Container number(s)

Cargo description

We formally file claim on you in the amount of USD for the above-captioned shipment which was received short and/or damaged for which we hold you fully responsible.

Upon request, additional documents will be furnished substantiating the claim.

Describe specific loss or damage (i.e. container was received five cartons short or nature of damaged goods). 

We invite you to contact the undersigned and arrange to survey the damaged shipment.  

Please consider this letter as a legal protest in due form. 

Thank you for your prompt reply.

Sincerely,

Signature

Claimant’s full name

Company Name

Email address

Contact number

Today it is almost impossible for cargo receivers within a period of 3 days to know if cargo inside of the container is damaged. That is the primary reason why shipping lines reject any claim submitted after this period. Claim defense, if submitted after the 3 day period, is more difficult and takes more time, because the burden of proof is on the cargo interest side to show how exactly damage happened and why the carrier is liable.

Most importantly, bear in mind, that as long as the claim is submitted within the time prescription period ( 1 year after delivery in most of the BL cases) carrier MUST investigate it and has no right to reject it.

Improper handling of freight claims can be very expensive, time-consuming, and frustrating and mistakes should be avoided if possible. The more knowledgeable about the ins and outs of the claims process, the better-equipped Importer will be to settle cargo claims without entering litigation or absorbing losses in full.

Let us know your wins at info@recoupex.com