Lost Cargo Containers at Sea: How to Prove, Process Claims, and Mitigate Losses
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In 2019, the MV Grande America, a container ship operated by Grimaldi Lines, encountered a catastrophic event in the Bay of Biscay. The vessel caught fire and eventually sank, resulting in the loss of several cargo containers. Among the lost containers were shipments containing various goods, including vehicles, chemicals, and consumer products. Year after industry witnessed more casualties in the Pacific with hundreds of the containers lost overboard.
Losing cargo containers while aboard vessels is an unfortunate reality in the shipping industry. When faced with such a situation, it’s crucial for shippers and consignees to understand how to prove the loss, navigate the claim process effectively, and take proactive measures to mitigate potential losses. In this article, we will delve into these essential aspects, providing valuable insights and guidance.
The claims process involved submitting detailed information about the lost containers, including descriptions, values, and supporting evidence of the cargo’s contents. Negotiations between the affected parties and the carrier’s claims department ensued to reach fair settlements for the lost cargo.
Proving the Loss
Proving the loss of a cargo container at sea can be a complex process. To establish a solid case, it is vital to gather and document the following evidence:
- Bill of Lading: The Bill of Lading serves as the primary document for proving the shipment’s existence and details.
- Communication Records: Preserve any correspondence, including emails, faxes, or letters, related to the shipment and its loss.
cargo container went overboard onto the sea
Processing the Claim
Once the loss is established, navigating the claim process efficiently is crucial to maximize your chances of receiving compensation. Consider the following steps:
- Prompt Notification: Notify the carrier immediately upon discovering the loss. Timely communication is essential, as failure to notify within the specified timeframe might weaken your claim.
- Detailed Documentation: Prepare a comprehensive claim file, including the Bill of Lading, loading documents, packing lists, invoices, and any relevant correspondence. Provide a clear description of the lost container and its contents.
- Supporting Expertise: Engage the expertise of a maritime lawyer or claims specialist to guide you through thegeneral average claim process if general average was declared, or your claim was rejected using “Act of God” rejection.
- Negotiation and Settlement: Once the claim is submitted, be prepared for negotiations with the carrier’s claims department. Carefully review any settlement offers, do not accept nuisance settlement without being sure if package limitation is applicable.
Losing cargo containers while at sea can be a significant setback for shippers and consignees. By understanding how to prove the loss, effectively process claims, and implement proactive mitigation measures, you can navigate this challenging situation with confidence. Remember, thorough documentation, expert guidance, and proactive risk management are key to protecting your interests in the complex world of international shipping.
It is worth noting that each incident and claim process may vary based on the specific circumstances, casualty extent and applicable laws. Therefore, it is crucial to consult with claims professionals for accurate guidance tailored to individual situations.
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.
