With the recent war happening between Israel and Hamas, the smooth flow of cargo is disrupted once again following restrictions going in and out of the affected regions. I share to you this real-life case study from the Ukraine-Russia conflict that sheds light on the challenges of cargo damage, claims, and how recovery led to success.
The story begins with a shipment of grapes from India to Ukraine, a seemingly routine trade transaction. Just as the containers were at TS Thessaloniki, Greece, a conflict between Ukraine and Russia erupted, introducing a layer of complexity and uncertainty into the shipping process.
In the face of this sudden upheaval, the seller had to act swiftly. With the war raging, they found a new buyer in Mersin, Turkey, and formed a Cash-on-Delivery (COD) agreement. This decision was a practical solution to ensure the cargo’s delivery despite the turbulent geopolitical landscape.
Unfortunately, the challenges didn’t end there. When the cargo reached its destination in Turkey, it became evident that it had suffered partial damage during transit. This is where cargo claims recovery come into play.
Initially, the shipping line rejected the cargo damage claim, invoking the war clause. The war clause is a provision in many shipping contracts that can absolve carriers of responsibility for damage caused directly by war-related actions. In this case, the carrier believed that the war had played a role in the cargo’s damage.
However, this is where Recoupex, an expert in cargo claims recovery, came into the picture. We managed to settle the claim, how?
1. After COD was formed carrier rolled over container 3 times.
2. Cargo receiver in Turkey gated out containers immediately out carrier on notice and arranged joint survey.
Key Takeaways from the Case Study
1. Carrier’s Use of War Defense: This case study underscores the fact that for carriers to rely on the war defense, cargo damage must be directly linked to war-related actions. It’s not a one-size-fits-all solution, and carriers must provide clear evidence of this connection.
2. Exporters’ Perspective: For exporters, it’s essential to be aware that the war defense used by liable carriers is not always an impenetrable defense. As this case demonstrates, it’s worth challenging when there is room for doubt.
This case study serves as a practical example of the challenges that can arise in the shipping industry, especially in times of conflict. It emphasizes the significance of cargo claims recovery and the value of professionals who can navigate the industry.
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.