Legal aspect of claims against the Carrier
The legal aspects of recovery against the carrier for loss or damage to cargo are governed by the terms of the bill of lading, which is the contract of carriage between the shipper and the carrier. The bill of lading typically sets out the carrier’s liability for loss or damage to cargo, as well as the shipper’s obligations to file a claim and provide documentation.
In general, the carrier is liable for loss or damage to cargo under the following circumstances:
- If the loss or damage is caused by the carrier’s negligence: This includes negligence on the part of the carrier’s employees, agents, or subcontractors. For example, the carrier may be liable if the cargo is lost or damaged due to improper packing, handling, or storage.
- If the loss or damage is caused by an act of God: This includes natural disasters such as hurricanes, floods, earthquakes, and tornadoes. The carrier is not liable for loss or damage caused by an act of God if the carrier took reasonable precautions to prevent the loss or damage.
- If the loss or damage is caused by a public enemy: This includes war, terrorism, and piracy. The carrier is not liable for loss or damage caused by a public enemy if the carrier took reasonable precautions to prevent the loss or damage.
However, the carrier may be able to limit its liability under the following circumstances:
- If the shipper fails to properly pack or mark the cargo: The carrier is not liable for loss or damage to cargo that is improperly packed or marked if the improper packing or marking contributed to the loss or damage. For example, the carrier may not be liable for loss or damage to fragile cargo that is not properly packed.
- If the shipper fails to declare the true value of the cargo: The carrier is not liable for loss or damage to cargo if the shipper fails to declare the true value of the cargo in the bill of lading. This is because the carrier’s liability is limited to the declared value of the cargo.
- If the shipper fails to file a claim within the time limits specified in the bill of lading: The carrier is not liable for loss or damage to cargo if the shipper fails to file a claim with the carrier within the time limits specified in the bill of lading. These time limits are typically very short, so it is important to file a claim as soon as possible.
In addition, the carrier may be able to avoid liability altogether if the loss or damage is caused by an inherent vice of the cargo, such as a defect in the cargo itself. For example, the carrier is not liable for loss or damage to cargo that is inherently defective, such as perishable goods that spoil due to their own nature.
If the shipper is able to prove that the carrier is liable for loss or damage to cargo, the shipper may be able to recover the following damages:
- The value of the lost or damaged cargo: This is the amount of money that the shipper would have received if the cargo had been delivered in good condition.
- The cost of repairs: If the cargo can be repaired, the shipper may be able to recover the cost of repairs.
- The loss of profits: If the loss or damage to the cargo prevents the shipper from making a profit, the shipper may be able to recover the lost profits.
- Other consequential damages: In some cases, the shipper may be able to recover other consequential damages, such as the cost of storing the damaged cargo or the cost of renting replacement cargo.
The shipper may also be able to recover attorney’s fees if the shipper is successful in its claim against the carrier.
Filing a claim against the carrier for loss or damage to cargo can be a complex process. It is important to consult with an attorney who specializes in cargo claims law to ensure that your claim is filed properly and that you recover the full amount of damages to which you are entitled.
Here are some additional tips for recovering against the carrier:
- File the claim as soon as possible: The sooner you file the claim, the more likely it is that you will be able to recover your losses. This is because the carrier may be able to more easily investigate the claim and gather evidence if the claim is filed promptly.
- Gather all relevant documentation: The more documentation you can provide, the stronger your claim will be. This documentation should include a copy of the bill of lading, a copy of the commercial invoice, a copy of the packing list, photographs of the damaged cargo, a report from a surveyor or inspector, and any other documents that support the claim.
- Be prepared to cooperate with the carrier’s investigation: The carrier will need to interview you and inspect the damaged cargo in order to determine if your claim is valid. It is important to be cooperative with the carrier’s investigation and to provide the carrier with all of the information that it needs.
- **Consider hiring a cargo