What is Loss Mitigation?
The legal definition is as follows: the principle that a party who has suffered loss (from a tort or breach of contract) has to take reasonable action to minimize the amount of the loss suffered. In layman’s terms of a cargo claim, this means that the cargo receiver has a duty and responsibility to the carrier to ensure the claim value is kept to a minimum.
Now more than ever it is important to save your money and take all measures possible to safeguard your business. As a small or midsize business, you’re no doubt familiar with the stress of operating on tight margins, and you know how valuable even a small amount of cost-savings can be to your bottom line.
There can be many reasons for a Cargo Claim, but it is up to you, the claimant/shipper to make sure you identify the reason and submit evidence accordingly along with photographs or even video evidence.
There are many reasons for cargo abandonment… and under the shipping lines ‘Merchant Clause’ the carrier could well pursue you the Freight Forwarder for outstanding monies…
Detention and demurrage charges are a shipper’s worst nightmare. These charges can add up to thousands of unforeseen dollars spent and have a massive impact on a shipper’s financial bottom line. The number of Detention and demurrage claims submitted to shipping lines by the exporters and importers has increased drastically in the year 2021- 2022. Luckily, there are ways to prevent these unanticipated expenses. This is easier to do than you may think…