Impact of Misdeclared Goods on Cargo Claims Recovery
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The exact figures of misdeclared and undeclared goods on marine cargo are difficult to determine, as many incidents go unreported. However, the International Union of Marine Insurance (IUMI) estimates that the global cost of marine cargo claims related to misdeclared and undeclared goods is in the billions of dollars each year.
A 2022 study by the National Cargo Bureau (NCB) found that approximately 10% of all marine cargo shipments contain misdeclared or undeclared goods. The NCB study also found that the problem of misdeclared and undeclared goods is on the rise. This is due to several factors, including the increasing complexity of global supply chains, the growing e-commerce market, and the rise of organized crime.
The Domino Effect on Cargo Claims
- Risk of Damage to Cargo
Misdeclared and undeclared goods can be hazardous or incompatible with other cargo in the same shipment. This increases the risk of damage during transit. For instance, incompatible chemicals or goods can lead to leaks, spills, or even fires, causing harm to other cargo.
- Legal and Regulatory Consequences
Shipping misdeclared or undeclared goods can lead to legal and regulatory troubles. If authorities discover the discrepancy, it can result in fines, confiscation of the cargo, or even legal action. These issues can further complicate cargo claims recovery.
- Cargo Claims Challenges
When damage occurs due to misdeclared or undeclared goods, filing cargo claims can become a complex process. Cargo documentation and the circumstances of the damage may be scrutinized, potentially delaying or affecting the recovery.
Protecting Your Cargo and Claims Recovery
- Vigilance in Documentation
Accurate and thorough documentation is crucial. Ensure that all cargo details are correctly declared, and don’t hesitate to seek expert assistance in verifying cargo descriptions and compatibility.
- Professional Partnerships
Partnering with experts like Recoupex can be invaluable in navigating cargo claims and recoveries. Their expertise can help streamline the process and improve your chances of a successful recovery.
- Compliance and Education
Stay informed about shipping regulations and ensure that your team is educated about the risks of misdeclared and undeclared goods. Vigilance and compliance are key to avoiding these hidden dangers.
Misdeclared and undeclared goods may seem like small details, but they can have a significant impact on your cargo shipments and cargo claims recovery. To protect your cargo and your business, it’s essential to be vigilant, accurate, and compliant in your shipping practices.
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.
