Cargo Losses in War, Recovery Challenges

In the recent Israel-Hamas conflict that broke out, restrictions have been put in place affecting goods entering Israel through the Egyptian border. War can bring about a multitude of challenges, and when it comes to the cargo industry, it’s no different. When cargo is lost or damaged during a war, recovering your losses through the standard cargo claims procedure can be a complex and often fruitless. The short answer to the question, “Can you recover your losses from the shipping line?” is a resounding no.

War Defense in Cargo Claims

War defense, also known as the “perils of the sea” or “acts of God” clause, is a common exclusion in cargo claims policies. When a cargo loss occurs during a war or conflict, this exclusion becomes a huge barrier to recovering your losses. The logic behind this is straightforward: war is an unpredictable and uncontrollable event, making it exceptionally difficult for cargo carriers and even insurers to be held accountable for damages or losses resulting from warfare and international laws grant certain immunities to carriers and shipping lines during wartime.

When a cargo loss or damage takes place during a conflict or in a relation to the conflict you can expect the shipping line or insurer to cite war defense as a reason for denying your cargo claims. This is the point where many shippers find themselves in a challenging situation. So, if your cargo is unfortunate to be caught up in a war zone, traditional avenues for cargo claims recovery are rarely fruitful in such situations, and the financial losses can be significant.

What You Can Do as an Exporter in Conflict Zones?

Whether you’re dealing with fresh produce or general cargo, the principles remain the same when it comes to averting losses during wartime:

1. Communication is Key: 

If your cargo is in or out of Israel or neighboring conflict-affected countries, staying in close contact with your shipping line or freight forwarder is crucial. Swift and clear communication can help you make informed decisions in real-time.

2. File a Change of Destination (COD) Immediately: 

One of the practical steps you can take is to file a Change of Destination request with your shipping line. This process allows you to divert your cargo to an alternative, safer location. By doing this, you can potentially avoid the risks associated with conflict zones and increase your chances of making a sale. Be sure to initiate the COD process as soon as possible to minimize potential losses.

Dealing with cargo claims and losses in times of war is a challenging endeavor. The standard cargo claims procedure often falls short in such situation. Exporters must remain an active stance, reach out to their shipping partners, consider salvage sell to other buyers to mitigate losses.

Recoupex is a hub of transport lawyers – experts in cargo claims. We assess your case quickly. We have successfully recovered claims from Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers.

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