Cargo claims. Has the time bar been properly protected?
Cargo claims. How to win water damage claims?
July 4, 2021
Cargo theft and seal discrepancy. How to avoid losses?
July 25, 2021
Ensuring the time bar is a fundamental aspect of handling cargo claims. It is not possible for the claim to be further pursued after the time limit has passed.
Industry statistics show that approx 90% of all cargo claims submitted to shipping lines are pushed into time bar by the carriers. Every year. Means shippers get 0.
More experienced claimants are aware of the adrenaline rush as the time bar date creep closer. Whether you have requested a time extension or not in the past, here are a few tips which will assure that there can be no doubt of whether a time extension was granted or not.
Correct Time Limit
Cargo claims relating to sea carriage may be subject to a 1 year time limit under the Hague or Hague-Visby Rules or a 2 year time limit under the Hamburg Rules.
How to obtain time extension from the carrier ?
For a shipping line to grant a time extension, a Claimant has to have a right to claim ( shipper, consignee, end cargo receiver, insurance company or legal representative under BL) and the claim has to be not time barred.
If you are shipper under HBL, time extension request should be submitted to Freight Forwarder.
Make sure you calculated properly time bar: 12 months after the day of delivery.
Shipper can send a request of time extension to shipping line when he wants. Usually it is done 1 month to 1 day before the time bar date. Our suggestion is to send this request earlier.
What to write in your message to Carrier?
Email Subject line: Time Extension request: BL #….Container #….
“We, ABC Company Ltd., co/ee under Bill of Lading hereby request a time extension of 3 months from current time bar date, DD/MM/YYYY, up to and including DD/MM/YYYY, in respect of our claim of cargo XXXXX under bill of lading number ABCD123456 which we submitted to the carrier, JKL Shipping Line, on DD/MM/YYYY”.
Determining the correct time limit and the protective steps to be taken may not be straightforward. Let us know if you need help to obtain time extension request from any carrier.
