When it comes to managing the ins and outs of the global marketplace, cargo loss can disrupt supply chains, damage client relationships and lead to significant financial losses.
The first step in addressing cargo loss is determining who is liable. Liability often depends on the terms of a shipping agreement, which is commonly outlined in the bill of lading or contract of carriage. Such documents detail the responsibilities of the shipper, carrier and consignee engaged in a particular transactional relationship. Liability may rest with the carrier, freight forwarder or another third party involved in the logistics chain.
Additionally, the nature of the loss—such as theft, damage, or delay—plays a role in determining responsibility. International conventions and the terms of specific contracts govern the rights and obligations of carriers and shippers, often placing limits on recourse-related compensation based on a particular cargo’s value.
Obtaining compensation
When cargo is lost, businesses should act quickly to preserve their rights:
- Document the loss: Keep detailed records, including shipping documents, correspondence and evidence of the loss. This documentation can help to substantiate claims.
- File a claim: Notify the responsible party (e.g., the carrier or insurer) promptly. Most shipping agreements include strict timelines for filing claims, often ranging from a few days to a few months.
- Review insurance coverage: Cargo insurance can mitigate losses, covering scenarios like theft, damage or total loss.
If a satisfactory resolution isn’t achieved through negotiation, litigation or arbitration may be necessary. Experienced legal counsel can help assess jurisdictional issues, identify applicable laws and pursue claims efficiently. Unless the loss at issue is truly minor, there is no reason that businesses should feel compelled to pay the costs of cargo loss that they didn’t cause.