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Facing cargo damage during transit can be a distressing experience for any shipper or consignee. When filing a cargo claim with the shipping line to seek compensation for the losses incurred, it is essential to understand the factors that may lead to claim reductions.
Why Claims Are Reduced by Shipping Lines?
Shipping lines operate under strict regulations and guidelines to handle cargo claims professionally and transparently. As per these regulations, shipping lines have the right to reduce claim settlement amounts if the claimant fails to furnish all necessary evidence and documentation supporting the claim of cargo damage while the goods were under the shipping line’s custody.
- Insufficient Evidence: One of the primary reasons for claim reductions is the lack of adequate evidence to establish that the cargo sustained damage while in possession of the shipping line. Insufficient proof can lead to skepticism, counter statements and hinder the process of claim approval.
- Incomplete Documentation: Accurate and comprehensive documentation is crucial when filing a cargo claim. Shipping lines rely heavily on the proper completion of shipping documents, including bills of lading, packing lists, and evidence of the cargo’s pre-shipment condition. Incomplete or incorrect documentation may lead to claim reductions.
- Proper cargo enumeration on BL: Ensure that the cargo enumerated on BL is in the smallest packages possible e.g 3000 boxes instead of 3 pallets. This way liable carrier will bot be able to rely on package limitation.
Securing a Fair Cargo Claim Recovery
To maximize the chances of receiving a fair and timely claim settlement, claimants must be proactive in their approach and provide all required evidence and documentation. Here are some essential steps to ensure a smooth and successful cargo claim recovery process:
- Document the Pre-Shipment Condition: Before handing over the cargo to the shipping line, thoroughly document its pre-shipment condition with photographs and videos. This evidence will be invaluable in establishing the condition of the cargo at the time of shipment.
- Accurate Packing and Labeling: Ensure that the cargo is appropriately packed, labeled, and secured for the journey. Complying with industry standards will strengthen your claim and minimize the likelihood of claim reductions due to inadequate packaging.
- Verify Shipping Documents: Verify all shipping documents for accuracy and completeness. Any discrepancies or errors should be corrected before submitting the claim.
- Timely Claim Filing: File the cargo claims promptly after discovering the damage.
- Seek Professional Assistance: Dealing with cargo claims can be complex, and it may be beneficial to seek expert help. Companies like Recoupex specialize in cargo claim recovery and can guide you through the process, ensuring all requirements are met to secure a fair settlement.
Understanding the reasons behind cargo claim reductions empowers shippers and consignees to take the necessary steps to avoid potential pitfalls. Remember, prompt action and proactive measures can make all the difference in the cargo claim resolution process, ensuring a smoother and more satisfactory experience with the shipping line.
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.
