Why Do I Have To Mitigate Cargo Loss?

Cargo loss mitigation is a critical principle in law, requiring parties who suffer losses to take reasonable action to minimize the extent of their losses. Whether you’re dealing with damaged cargo or facing cargo claims, implementing effective mitigation techniques is essential to protect your interests and ensure a smoother cargo claim recovery process.

One common scenario is when a consignee receives a shipment of rice with partial damage due to water ingress to the container. If the consignee fails to segregate the damaged cargo from the salvageable cargo while transferring it to a warehouse, the carrier responsible for the initial damage cannot be held liable for avoidable losses that could have been prevented with proper segregation.

When cargo gets damaged during transit, and you need to file a cargo claim, the shipping line may challenge your efforts to mitigate losses. Therefore, it is crucial to provide solid evidence of your loss mitigation measures.

Here are some simple yet effective techniques to prove that you have taken appropriate actions to mitigate cargo losses:

1. Cargo Segregation: Ensure damaged and undamaged cargo are clearly separated to prevent further contamination and losses.
2. Fumigation: If required, conduct fumigation to prevent the spread of pests or contaminants.
3. Re-bagging: Consider re-bagging damaged goods to prevent further deterioration.
4. Transfer to Dry Warehouse: When appropriate, move the cargo to a dry or cold storage warehouse to protect it from unfavorable environmental conditions.
5. Prompt Port Handling: Gate out or take delivery of the cargo from the port within a reasonable time to minimize exposure to potential risks.
6. Document Evidence: Capture detailed pictures and videos of the container, cargo, and seal conditions before destuffing begins.

Now, clients often wonder about the extent of their duty to mitigate losses. Legally, the claimant must mitigate losses, but we only expect them to do what is reasonable given the circumstances. As long as they align with reasonableness, we can consider commercial interests. Not requiring to go beyond what is reasonable and incurring further losses, essentially, we rely on common sense when assessing the extent of mitigation efforts.

In the unfortunate event of cargo damage and the need to pursue cargo claim recovery, understanding and implementing proper mitigation practices can significantly impact the outcome. Being proactive in documenting your mitigation efforts with evidence will strengthen your claim and expedite the recovery process.

Should the need arise, professional assistance from cargo claim recovery experts like Recoupex can streamline the process and ensure a fair resolution in your favor. Stay vigilant, act reasonably, and protect your cargo and interests throughout your shipping journey.

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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