4 tips to get your cargo damage claim paid faster
We are delighted to present our first guest blog: Lina Jasutiene, Recoupex CEO, is an excellent help for shippers and logistics companies that need to deal with freight damage claims but need more time or expertise to handle them.
Some of you may recall the stress of lost or damaged cargo, and you probably have incurred financial losses as well.
So, let’s talk about something near and dear to everybody’s heart: money. Every year, the process of claiming compensation for cargo losses or damages from shipping lines or transportation companies is becoming more overwhelming.
In this blog, you will learn how to accelerate freight claim refunds and collect no-brainer evidence that your cargo was delivered to the destination damaged, and it was not your fault. It’s like getting superpowers!
1. Speed matters
It is fine to claim compensation from the liable party every time. Whoever damaged your cargo has to be the party to pay for it. Not the insurance company, not you, but the liable party.
The truth is, the more you delay, the fewer chances you have to obtain the settlement. The faster you act, collect freight damage evidence, and have more time to protect the time bar (statutory time limit for enforcing a cargo claim through legal proceedings).
2. Show the cargo damage
Shipping lines and transportation companies deliberately “forget” to state in their official claim procedures a list of pictures they expect the claimant to present as evidence to settle the claim.
Often, cargo gets damaged during transport, and the receiver forgets to take pictures of unloaded goods and returns the container empty. Only then try to claim.
Guess what kind of compensation you will get? Right! Zero.
Have a look at the pictures below. These are typical pictures submitted by the claimant to the shipping line and have been rejected.
You may ask, “Why”? This picture does not make it clear to the shipping line that the cargo was carried and damaged by them. To avoid this happening to you, here are five steps to claim your freight damage efficiently.
- Step 1
To collect proper evidence, you need a smartphone only. Nothing more!
- Step 2
Take pictures of the container with a visible container number on the door and side panel. Show that the container was damaged (holed bent, dropped, corner post damages, etc.), in poor condition (e.g., heavy rust, dents, old door gaskets), or was submerged in water (e.g., visible water lines on side panels). Pictures should be taken from outside and inside a container.
- Step 3
The following picture has to show how the cargo was stuffed correctly inside the container. Showing if the shipper fulfilled an obligation to pack, stuff, and seal the container correctly at loading time.
- Step 4
Show the extent of cargo damage. Was only one bag of rice soaked in the water or half of the container?
- Step 5
Take all the pictures before you return the empty container to the yard. If possible, put the time stamp on each picture and send it immediately to the transportation company with the claim.
Cargosnap
is the right tool to take pictures and keep track of all your inspections in one place without changing your process. Your team will have all the cargo data securely and available to everyone.
3. Invite the shipping line to the party
A joint survey is a legal procedure that you need to comply with. Whether the liable party attends a joint survey at your warehouse or not, invite them. Make sure the container is available to be inspected during the joint survey.
4. Follow up on your cargo claims regularly
Follow up with the shipping line after you submit a claim and have a process in place.
We have seen too many suitable claims expire just because the claimant forgot to follow up on the claim or the shipping line wilfully dragged the case until it became time-barred.
If you submitted a copy of BL, commercial invoice, packing list, damaged cargo pictures, and all the necessary evidence witnessing your cargo loss, do not lose a battle due to failure to timely follow up. Don’t do it
mañana. Do it today.
Obtain your stress-free compensation
Obtaining compensation from the liable party when your cargo is damaged is not a mystical process. It doesn’t just happen. It’s intentional, not accidental.
In reality, most shippers put too much significance on being patient and wishing their cargo claim compensation would be paid, and not enough emphasis on settling the claim.
Curious to know how Suzano reduced their cargo damages by 81%?
Recoupex's mission is to boost global trade by creating a frictionless cargo claim refund experience through a network of lawyers and experts. The company makes claiming compensation straightforward for all customers unsure of their rights or expertise to embark on the claims process themselves.
