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Tips to reduce cargo loss claims

On Behalf of | Aug 31, 2023 | Admiralty & Maritime Defense

Cargo shortage claims result when cargo is missing from a shipment, damaged or lost in transit. Defending against cargo shortage claims requires an understanding of proper procedures.

There are steps you can take to help defend your operation against these cargo claims.

Comprehensive documentation

Accurate, detailed records of the condition, quantity and packaging of any cargo throughout the transportation process help create a paper trail. Record these details during loading, unloading and any handling points in transit.

Thorough inspection

Before you leave the port, complete and document a thorough inspection of the cargo. Note any existing damage or shortages at the port. Compare the loaded cargo against the bill of lading and make a note of any discrepancies, such as count or weight.

Stowage plan compliance

Follow the stowage plan with your contractual agreement to ensure that the cargo is secure. Any shifting of the cargo in transit can lead to losses, so take proactive steps to ensure its security.

Visual protections

Apply tamper-evident seals to all of the containers during loading. This reduces the risk of unidentified theft before delivery. Record video or take photographs during loading and while securing the cargo to provide visual evidence of the condition.

Contract compliance

Review your contract carefully for any delivery terms, conditional requirements or documentation required with the cargo. Ensure that all cargo handling procedures comply with the contract terms.

According to a study published by Allianz, cargo losses are the third-largest cost driver for claims as of 2022. Protecting your business against cargo loss claims helps reduce your financial risk.