The Hidden Costs of Unrecovered Cargo Claims: How They Impact Exporters, Forwarders, and Insurers

Unrecovered cargo claims can have a significant impact on cargo exporters, freight forwarders, and marine insurance companies. When cargo is lost or damaged during transit, the responsible party is typically required to compensate the owner of the cargo for the full value of the lost or damaged goods. However, in many cases, cargo claims go unrecovered, leaving the affected parties to bear the cost of the losses.

In this blog post, we’ll explore the impact of unrecovered cargo claims on exporters, freight forwarders, and marine insurance companies.

For cargo exporters, unrecovered claims can have a significant financial impact. Exporters rely on the successful delivery of their goods to maintain their business operations, and when cargo is lost or damaged, they may be unable to recoup the full value of the goods. This can lead to lost revenue, reduced profitability, and damage to their reputation.

Freight forwarders, who are responsible for arranging the transportation of goods on behalf of exporters, can also be affected by unrecovered cargo claims. When cargo is lost or damaged, forwarders may be held liable for the losses and required to compensate the exporter. This can result in significant financial losses for the forwarder if exporter persist with cargo claim or may lead to a loss of business if their clients seek out other transportation providers.

Marine insurance companies, which provide insurance coverage for cargo during transit, may also be affected by unrecovered claims. When claims go unrecovered, insurers may be required to cover the losses, which can result in increased insurance premiums and reduced profitability. Poor subrogation results directly affect underwriting and complicate customer retention.

To avoid the impact of unrecovered cargo claims, it is important for all parties involved in the transportation of goods to take proactive steps to prevent losses and to pursue recoveries from liable for the damaged cargos.  This may include consulting Recoupex, implementing effective loss prevention measures having in house system in place to cut losses from the unrecovered claims.

​​Recoupex is one of the fastest growing cargo claims recovery hubs helping customers globally to obtain the compensation they are entitled to when cargo is lost or damaged in transit (ocean, multimodal, air shipments: dry and refrigerated cargo). If you think Maersk, Sealand, Hapag-Lloyd, Mediterranean Shipping Company – MSC, CMA CGM, and other carriers might owe you compensation because of cargo loss or damages, you’ve come to the right place. Recoupex has recovered thousands for shippers around the globe and they could help you win back the compensation you deserve for lost or damaged cargo in transit.   If they don’t win- you don’t pay.