Answer
if cargo is damaged at sea, the consignee should immediately notify the carrier and arrange a joint survey at discharge port. The cargo owner normally makes the claim against his cargo insurer. If the loss is covered, the cargo insurer pays him and then, by the principle of subrogation, recovers from the carrier if the carrier is legally liable. The shipowner's cargo liability is normally handled by the P&I Club. If the carrier has a valid defence, such as inherent vice or an excepted peril, recovery from the carrier may not be possible.”
The usual sequence is:
- At discharge port, the consignee notes the damage immediately and gives written notice to the carrier / shipowner / agent.
- A joint survey is arranged — normally involving cargo surveyor, carrier/P&I surveyor and cargo insurer’s surveyor.
- Evidence is preserved: Bill of Lading, mate’s receipt, cargo invoice, packing list, survey report, photographs, tally/delivery records, temperature logs if relevant, Letter of Protest, etc.
- Cargo owner submits the claim to his cargo underwriter/insurer.
- If the damage is covered by the cargo policy, the cargo insurer pays the assured according to the policy terms, excess/deductible and insured value.
- After paying the cargo owner, the insurer obtains subrogation rights and can recover from the party responsible — commonly the shipowner/carrier.
If damage was due to carrier fault, such as:
- seawater ingress because hatch covers were defective,
- improper stowage,
- failure to properly care for cargo,
- reefer machinery/temperature failure attributable to the carrier,
- unseaworthiness caused by lack of due diligence,
then the claim is against the carrier/shipowner.
In practice, the shipowner's cargo liability is generally handled by the P&I Club.
8.If the damage was caused by an excepted peril and the carrier has complied with its legal duties, the carrier may have a defence.
Examples may include:
- inherent vice of the cargo,
- insufficient packing,
- certain perils of the sea,
- shipper's fault,
- other applicable contractual/statutory defences.
In such a case, the cargo owner may still recover from his own cargo insurance, depending on the policy, but the cargo insurer may have no successful recovery against the shipowner.
9. If cargo is uninsured, then the cargo owner must directly claim against the carrier/shipowner and prove that the carrier is liable.
If the carrier is liable, payment would normally be made by or through the shipowner's P&I Club, subject to the applicable liability regime and limitation.