Why Ocean Carrier Rejected Your Cargo Claim?
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Filing a cargo claim can be a stressful process, and it can be even more disheartening when ocean carriers reject your claim for compensation. Understanding the reasons behind these rejections is crucial for protecting your interests and finding ways to overcome potential obstacles. In this article, we cover the common factors that lead ocean carriers to reject cargo claims and provide insights what to do.
- Insufficient or Inaccurate Documentation
One of the most common reasons for claim rejections is insufficient or inaccurate documentation. Ocean carriers require detailed and accurate records to substantiate your claim, including bills of lading, commercial invoices, packing lists, and inspection reports. Incomplete or incorrect documentation can undermine the validity of your claim and provide carriers with grounds for rejection. It is vital to collect all documents and ensure they align with the carrier’s requirements.
- Lack of Proof of Liability
Ocean carriers may reject claims if shippers fail to provide adequate proof of liability. It is essential to establish a clear link between the damages and the carrier’s negligence or breach of duty. Thoroughly document the condition of the cargo before shipping, collect photographs, videos, or independent inspection reports, and demonstrate that the damages occurred during the carrier’s custody and control.
- Limitations and Exclusions in Contractual Terms
Ocean carriers often use, and abuse limitations and exclusions stated in their contractual terms and conditions such as “act of god”. It is important to counter back with the legal arguments clearly demonstrating when the carrier’s defense line if not applicable.
- Inadequate Packaging or Improper Handling
Claims may be rejected if carriers can attribute the damages to inadequate packaging or improper handling by the shipper. It is essential to ensure that your goods are properly packaged, taking into consideration the nature of the cargo, the challenges of ocean transportation and the best industry practices. Have evidence available to prove exporter loaded cargo properly and in good condition.
- Seeking Legal and Expert Assistance
When faced with a rejected cargo claim, early on seeking legal or expert assistance can be invaluable. These professionals specialize in cargo claims and have experience in dealing with carrier rejections. They can evaluate the grounds for rejection, assess the strength of your claim, and guide you through the necessary steps to challenge the decision. Their expertise can significantly increase your chances of recovering your losses.
Understanding why ocean carriers reject cargo claims is essential for shippers seeking fair compensation. By addressing common rejection factors such as insufficient documentation, lack of proof of liability, limitations in contractual terms, and inadequate packaging or handling, you can strengthen your claim and navigate the claims process effectively. Seeking professional assistance when faced with rejection can provide you with the support and expertise needed to counter a carrier’s initial rejection successfully.
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.
