What is Time Bar in cargo claims and Why does it matter to you?

Missing time limit to settle cargo claim has severe financial consequences.

Time bar has been a hot topic, especially when genuine cargo claims are extinguished by carriers after a certain period of time. The nature of the time bar clauses and the concept itself is quite draconian. Every cargo claim is subject to a limitation period.

Mostly applicable time bar and relevant for claims under the bill of lading is one year from the date of delivery of the goods or of the date when they should have been delivered.

The starting point for a court is that if a claim is not settled amicably or is not lodged at court within the applicable time limit it cannot be made at all and while some courts may have the discretion to permit a claim which has been made out of time, persuading courts that claims should be allowed in such circumstances can be a lengthy and uncertain process. Missing a time limit can therefore have severe financial consequences.

How to protect cargo claim’s time bar?

Submit your claim and supporting documents as early as possible.

Follow up regularly with the carrier.

Always keep your time bar date in mind.

When your time bar date approaches, you have a right to request a time extension from the shipping line. Usually, it is 3 to 6 months.

If you believe you have a very strong claim, but an extension of time is not granted by the shipping line then your next option is to lodge your claim with a court before the time bar date.

Note: It is always the exporter’s and importer’s responsibility to protect the time bar.

Do not stay passive in the cargo claim process. Do not expect that if you submitted claim documents to the liable for the cargo damage carrier you will be paid someday. Nothing can be further from the truth.