Cargo claims. How to win water damage claims?

Often we receive claims where cargoes such as coffee, cocoa, rise, sugar etc. have become wet and/or mouldy during transit.

Shipping lines use standard rejection: “condensation”, “inherent vice”, BL clauses “ load, stow, count” in order not to pay these claims. It sounds negative. No importer enjoys disputing the obvious, that cargo was heavily rotten due to hole, dents, cracks, flooding etc.

And you may or may not believe me but possessing the right evidence from the origin can save you a lot of time arguing with the carrier and will always yield in positive outcome.

Below are the tactics to help you negotiate cargo claims for water ingress/mould like a pro.

Basic Claim Requirements

When submitting a claim for any type of damage, you will need the following documents: 

• Bill of lading
• Commercial invoice
• Packing list
• Salvage evidence i.e. salvage invoice, repackaging invoice, segregation evidence, destruction invoice
• Notice of loss to carrier sent within 3 days of delivery

There are a few things that Exporters can do to help win water/ mould damage cargo claims:

For a more successful and faster outcome of cargo claim, do the following: 

1. Pre loading survey – A pre loading survey can offer you the chance to prove cargo stuffing and packing conditions compliant to best industry practices. Pre shipment survey report can be done by exporter’s warehouse team.
2. Quality certificates – Having quality certificates to prove that cargo was in highest quality at time of stuffing the container, including moisture levels will assist your claim if cargo becomes mouldy during transit.
3. Pre Loading Photographs or Video- Proving that the container was suitably prepared to avoid moisture damage can be extremely helpful during a claim. To prove that the proper dunnage was used, such as kraft paper lining and desiccant bags, will greatly improve your defence.

Nobody told, that cargo claims is easy. Knowing which evidence to collect can help you get settle cargo claims faster. Reach Recoupex without delay if you have a burning question or need help to get your money back.