Cargo damaged in transit: claiming against the carrier the right way

When cargo is damaged or short, owners usually have two routes: claim on the cargo policy, and hold the carrier liable. They are not exclusive. After paying, the insurer subrogates against the carrier, so preserving the right to claim from the start affects both files.

On delivery

• Check the container, seals and packaging before signing.
• If anything looks wrong, write a specific reservation on the delivery receipt or equipment interchange receipt (EIR).
• Photograph the container number, seal number and external condition.
• Invite the carrier or its agent to a joint survey.

Notice of loss

Send written notice of loss and claim to the carrier as early as possible. For damage not apparent on delivery, the notice period is often counted in days, depending on the applicable law and bill of lading terms. The notice can be sent before the amount is known.

Time bar

For carriage by sea under a bill of lading, the time bar for suing the carrier under the common international conventions and Vietnamese maritime law is usually one year from delivery. If negotiations drag on, ask the carrier in writing for a time extension before it expires.

Exact time limits depend on the mode of transport, bill of lading terms and applicable law. Check them as soon as you discover the loss.

Documents to keep

• Bill of lading, commercial invoice, packing list
• Delivery receipt with reservations
• Joint survey or survey report
• Claim letters sent and the carrier's replies
• The damaged goods, until all parties agree on disposal

General guidance only. Your actual entitlement depends on your policy and the facts of each case.