How to nail your next cargo claim against a shipping line

[00:00:00] Kingsly: Hi, ladies and gentlemen. Welcome to yet another episode of the Cargo Rant Podcast. Today I want to talk to you about how to nail your next cargo claim against a shipping line. So many of you who are listening either by audio or watching the YouTube channel, you may not be a claims expert and irrespective of the field in which you find yourself, whether you are a fruit exporter or you are dealing in fish or meats or you are shipping through containers, you would find a lot of value. [00:01:07] Kingsly: in this very short video which I prepared for you. So the topic for today is how to nail your next cargo claim against a shipping line. Let's kick things off. So let's start with understanding the basics, and before we jump into it, let's make sure we really understand what the basics are all about. [00:01:33] Kingsly: What is a cargo claim? A cargo claim is a demand made by a cargo owner or their insurer to recover any loss or damage that occurred to their cargo in transit. And this can happen for a variety of reasons, so it could be a result of theft. Misdelivery contamination or even temperature violations if you're dealing with temperature-sensitive products [00:02:01] Kingsly: In certain cases, it could even be a delay in the delivery of your cargo. Now let's break down the tips on how to successfully file a cargo claim against a shipping line. And here I want to tell you about what I call the five Cs of cargo claims. [00:02:24] Kingsly: So the first C starts with the contract. First and foremost, ensure that you have a clear understanding of the contract with the shipping line. Now, depending on the type of contract, you could be a bill of leading contract. It could be a charter party contract, but whichever it is, you need to familiarize yourself with the terms and conditions, specifically the carrier's liability. [00:02:48] Kingsly: and any limitations or exceptions, these are typically where or what the carrier will rely on to reject your claim. The second C is to collect evidence, so you need to gather all relevant documents such as the bill of leading the commercial invoice, the packing list, and photographs of the damage. You need to keep a really detailed record of communication with the shipping line as this will help build a strong case. [00:03:21] Kingsly: I normally tell my clients that, You start preparing for a cargo claim before a claim arises. If you have to wait till a claim has a reason, then you're probably already very late. Either people have moved away from companies evidence has been lost or tampered with, so it makes it very difficult for you to investigate backwards what the cause of damage to your cargo was. [00:03:44] Kingsly: But if you are collecting this information at the beginning, then you stand a better chance of a successful claim against a shipping line. Now moving on to the third. The third C here is for calculation. So you need to accurately calculate your claim amount by taking to account the value of the cargo, any incurred expenses and potential loss of profit. [00:04:06] Kingsly: The value of the cargo here may be the declared value and the customs, or it could be a declared value plus a certain percentage depending on which country you are or who your cargo insurer is typically the value of your cargo or of your loss is, defined or is looked at as the arrived, sale market value of that cargo in the country of destination less, they arrived damaged value of the cargo in question. [00:04:41] Kingsly: So if you have these two figures, subtract one from the other, and then you get the true value of your loss. However, as I indicated earlier on, it is really important that you have, you keep the supporting documents to prove. , whether it's a commercial invoice to prove the value of the cargo, or if it is in a foreign country, then you have to look at the sound market value of your particular type of cargo. [00:05:09] Kingsly: This could mean going through websites price cons, and comparison websites. It could mean going to online shops just to see what the value of the cargo is at that particular point in time or that period now let's move to the fourth C communication. This is really relevant, and very important because you need to maintain open and professional communication with the shipping line throughout the process. [00:05:39] Kingsly: Now, your communication would typically be by, by email. There are certain cases where you could do it by phone call but I, wonder if you'd be able to handle or manage a claim from the beginning to the end using a phone conversation. The shipping lines wouldn't even allow you to do that, so you'd have to draft an email and send it through. [00:06:00] Kingsly: I couldn't overemphasize the importance of you drafting a properly written email, a well-written email. And remember that once you click sent on this email your reputation goes along with that email to the shipping line. How you are perceived is closely linked to how you present yourself in that email. [00:06:22] Kingsly: So this form of communication is really, I. If you want to be a good claims manager, you must be good at writing and putting your thoughts concisely. Putting your arguments logically in an email would help you go a long way. And this will show your commitment to resolving any issue or resolving the issue amicably. [00:06:46] Kingsly: And it will help establish goodwill, which is really important when it comes to cargo claims because a good amount of cargo claims good portion of cargo claims are settled out of court. So goodwill is very important. Then let's move to the Fifth Sea. The Fifth Sea is what I would call consulting your experts or consulting. [00:07:11] Kingsly: I know many of you who are listening today may not be claim experts. And cargo claims can be complex. They're maritime laws that are applicable. They are at least two jurisdictions. You're shipping from one country to the other. They are at least six parties that are involved in a cargo claim. [00:07:30] Kingsly: So it can get really complex. If you feel that it's getting to a complex suite for you, then I urge you to consult an expert. And if you're unsure of any aspect of the cargo claims don't hesitate to consult a recovery agent or a maritime lawyer. They can provide you with valuable guidance and support. [00:07:53] Kingsly: And please do not wait until the shipping line has rejected your claim. You have provided all the evidence that you have in your position to a shipping line, and then you turn to your consultant. At that point, you may have already jeopardized your claim beyond repair. So I'll urge you to contact them before you establish any sort of meaningful communication with your shipping line. [00:08:20] Kingsly: So let's talk about timing and the legal framework. [00:08:29] Kingsly: When it comes to cargo claims timing is crucial. Everything is, timing is really of the essence. So you make sure that you are aware of the time limits for filing a cargo claim. And this can vary depending on the jurisdiction. Oh, the applicable. in general haggan HIG vis rules. They will provide a one-year time bar time limit within which you need to bring a claim. [00:08:57] Kingsly: And this would typically ha be applicable in European countries or in more developed countries where you have cargo or cargo-carrying companies if you like. And then the Hamburg rules. So the ROTEM rules, which are not yet applicable, but the Hamburg Rules provide for a two-year limitation period [00:09:19] Kingsly: Lastly, but certainly not the list, remember that a successful cargo claim often requires a solid understanding of the legal framework governing your case. So say, for example, you are exporting cargo from Cali, from Cameroon, where I'm from, to. To the uk. Now as an exporter based out of Cameroon, you need to be aware of the laws that are applicable in Cameroon as far as the courage of goods is concerned but also the laws that are applicable in the UK. [00:09:59] Kingsly: The reason why this is important is that sometimes the laws of one country may not be favourable o. , but the laws of another could be favourable to you. In this particular example that I've given you, for example, Cameroon and the uk, in the UK you have the HIG and HIG VI rules that are applicable. [00:10:18] Kingsly: So you have a one-year time in the UK within which you need to bring a claim. Whereas in Cameroon, there's a two-year within which ha you can bring your claim. And the interesting thing here is Cameroon's biosignature to Hamburg. It allows you to be able to commence your claim in Cameroon and not go to a more expensive jurisdiction as the UK or English law on the England High London High Court. [00:10:49] Kingsly: So you can bring your claim in Cameroon and you are well within your rights to do so. having this understanding is really critical when it comes to managing cargo claims where you are filing yours. Could determine the outcome of your claim. [00:11:08] Kingsly: So I hope you found this very short video. Interesting for you. If you are earlier on in your cargo claims career or if you are an international trader that is looking to handle your claims by yourself you can remember, you remember to click on s. Or the notification bell. I'll be bringing up more videos like this one short enough for you to be able to go through it fairly quickly but with enough information to ensure that your interest is well protected. [00:11:43] Kingsly: My name is Kingsly, and I've been your host and you've been listening to the Cargo Rant podcast. Thank you all very much.