Whether lost or damaged cargo can be compensated, and how much, doesn't depend on cargo value — it depends on which leg liability falls on and how the BOL and insurance are written.
What Loss and Damage Look Like
Entire packages lost, partial shortage, outer carton damage, cargo dampened or contaminated.
There are also cases where the outer carton is intact but contents are short, mostly during transloading or sorting.
Damage mostly occurs during loading/unloading and multiple transfers; dampness mostly occurs during ocean transit or the rainy season.
When the anomaly is discovered matters a lot — it often decides whether the claim succeeds.
How Liability Is Divided
| Stage | Liable Party |
|---|---|
| Pickup to gate-in (First Leg) | Forwarder / carrier |
| Ocean transit | Carrier, per BOL terms |
| Customs clearance / exam | Determined by the specific cause |
| Last Mile delivery | Courier or truck carrier |
| Damage from improper packaging | Shipper (seller) |
| Force majeure | Generally exempt |
Compensation Has a Cap — Not Necessarily Cargo Value
Ocean claims are paid per BOL terms, usually with a compensation cap, often calculated on a per-package or per-weight basis.
Courier claims are paid per the carrier's terms; whether you declared a value directly affects the payout amount.
Specific compensation standards are subject to the contract, BOL terms and carrier rules.
To get compensation close to cargo value, you need separate cargo insurance.
Claims Process: Who Does What
Step one: inspect the goods on the spot at receipt, photograph and note the anomaly, then sign.
Step two: notify the forwarder and file the claim immediately — the sooner the better.
Step three: prepare the claim materials: claim letter, invoice, packing list, BOL, damage photos, receipt record.
Step four: if necessary, obtain a loss assessment report from a third-party inspection agency.
Step five: the carrier accepts and investigates, then makes a compensation decision.
Step six: accept the compensation per the outcome, or submit additional materials to continue the appeal.
Time Limits
Claims have a time window; late submissions may not be accepted.
Time limits differ by carrier and by terms; specifics are subject to the BOL terms and carrier rules.
Ocean claims and insurance claims often have different time limits — the two tracks must be filed within their respective deadlines.
Filing the claim the same day you discover the loss or damage is the safest approach.
Preventive Actions Sellers Can Take in Advance
Reinforce packaging; reinforce heavy and fragile goods separately — don't let packaging become a reason for claim rejection.
Insure high-value cargo with cargo insurance, with the insured amount based on cargo value plus freight.
Keep complete documents and receipt records — these are the basic materials for a claim.
Always inspect on arrival; don't wait until after listing to find a shortage, when evidence is hard to obtain.
