Your cargo arrives damaged. Maybe it’s a few wet boxes, maybe it’s a whole container of ruined goods. The carrier shrugs. The insurer says “prove it.” You’re left holding the bag.

This is where most small shippers give up and eat the loss. Don’t. The law is on your side if you follow the steps – and if you follow them fast.

Here’s exactly what to do, in order, to turn a damaged cargo into a paid claim.

Step 1: Stop and Document – The First 24 Hours

Before you move anything, before you sign anything, before you call anyone:

1. Photograph everything.
   • Exterior of the container or packaging (show any dents, holes, water damage, resealing)
   • Interior as you open it (show how cargo was stowed, any shift, any wetness)
   • Close-ups of damaged goods
   • Seals and seal numbers
   • The whole scene from multiple angles
2. Video is better. Walk through the damage with your phone recording. Narrate what you see.
3. Preserve the evidence. Do not throw away damaged packaging. Do not let the carrier take the container away. If you must move cargo, do it after photos and note where each item came from.
4. Get witnesses. Have at least two people present when you open and inspect. Get their written statements signed and dated.
5. Check the seals. If container seals are broken, mismatched, or resealed, that’s proof of tampering. Record seal numbers and compare to the bill of lading.

Step 2: Immediate Written Notice – Same Day

Now you notify everyone. Not by phone. Not by text. Written notice, email with read receipt, and certified mail if it’s big money.

Who to Notify:

1. The carrier (shipowner, charterer, or NVOCG who issued the bill of lading)
2. The insurer (your cargo insurer, if you have one)
3. The freight forwarder (if they arranged the shipment)
4. The supplier/consignor (they may need to claim on their insurance)

What to Say:

• Date and time of arrival
• Vessel name and voyage number
• Bill of lading number and container number
• Description of damage
• Statement that you are reserving all rights
• Request for joint survey

Sample wording:

“Re: Bill of Lading No. XYZ123, Container No. ABC456789, Vessel MV EXAMPLE.

We hereby notify you that cargo arrived damaged on [date]. External and internal inspection reveals [describe damage]. We reserve all rights under the contract of carriage and applicable law. We request a joint survey at [location] within 48 hours.”

Time Limits – The Killers:

Miss these deadlines and your claim is dead. No exceptions.

Step 3: Joint Survey – Within 48-72 Hours

Do not let the carrier survey alone. Do not let your insurer survey alone. Demand a joint survey where all parties inspect together.

Who Should Attend:

• Your representative
• Carrier’s surveyor
• Your insurer’s surveyor (if you have cargo insurance)
• Independent surveyor (if you hire one – and you should for big claims)

What the Survey Does:

• Documents condition of cargo and packaging
• Takes samples for testing (if needed)
• Estimates extent of damage and cause
• Produces a joint survey report

Hiring Your Own Surveyor:

For claims over $10,000, hire an independent marine surveyor. Cost: $500–$2,000. Worth every penny. They speak the language, know the tricks, and their report carries weight in court.

Step 4: Gather Your Paper Fortress

While the survey is happening, assemble every document that touches this shipment:

• Bill of lading (clean or claused?)
• Commercial invoice (proves value)
• Packing list (proves what was supposed to be there)
• Pre-shipment photos (if you have them – proves cargo was good when loaded)
• Loading survey report (if you did one)
• Correspondence with carrier, forwarder, supplier
• Delivery receipt (did you note damage at delivery?)
• Survey reports (joint and yours)
• Weather reports (if you suspect rough seas caused damage)
• Port records (if you suspect mishandling at terminal)

Golden rule: If it’s not in writing, it didn’t happen. If it’s not dated, it didn’t happen when you said it did.

Step 5: File the Formal Claim – Within 7 Days

Now you write the formal claim letter. Not an email. A formal letter, on company letterhead, sent by certified mail and email.

What to Include:

1. Header: Your details, carrier details, date
2. Reference: B/L number, container number, voyage
3. Statement of facts: When shipped, when arrived, what damage was found
4. Amount claimed: Specific dollar amount, with breakdown
   • Value of damaged goods (invoice value)
   • Cost of salvage/sorting
   • Cost of survey
   • Interest (if applicable)
5. Legal basis: “Under the contract of carriage and COGSA/Hague-Visby Rules, you are liable…”
6. Documents attached: List everything you’re sending
7. Deadline: “Please respond within 14 days”
8. Reservation of rights: “We reserve all rights including the right to arrest vessel and initiate legal proceedings”

Sample Claim Amount Calculation:

Claim for Cargo Damage – B/L No. XYZ123
Invoice value of 100 units @ $50 = $5,000
Less: Salvage value of damaged goods = -$500
Surveyor fees = $800
Sorting and repackaging = $300
Total claim: $5,600

Step 6: When They Deny (Because They Will)

Carriers deny first, ask questions later. Standard reasons:

• “Insufficient packaging.” They claim your goods were poorly packed and that’s not their fault.
• “Inherent vice.” They claim the goods were defective or prone to damage by nature.
• “Act of God.” They blame rough weather, even if the weather was normal.
• “Clean bill of lading.” They claim since you accepted a clean B/L, you can’t prove damage happened on their watch.
• “Time bar.” You missed the one-year deadline to sue.
• “Improper notice.” You didn’t notify them within 3 days.

How to Respond to Denial:

1. Don’t accept it. Write back: “We reject your denial. Here is evidence to the contrary.”
2. Counter their arguments one by one:
   • Packaging? Show photos of professional packaging.
   • Inherent vice? Show pre-shipment inspection certificates.
   • Act of God? Show weather reports that conditions were normal.
   • Clean B/L? Show that damage was not externally visible (internal moisture, shifting).
3. Escalate: Threaten to arrest the vessel if they continue to deny a legitimate claim.

Step 7: Engage a Lawyer – When and Why

You don’t need a lawyer for a $2,000 claim. You do for a $20,000+ claim, or if the carrier is playing hardball.

When to Call a Lawyer:

• Claim value exceeds $10,000–$15,000
• Carrier denies liability outright
• They’re blaming you (packaging, loading)
• They’re citing the 17 COGSA defenses
• You need to arrest a vessel
• The cargo is high-value or complex

What a Maritime Lawyer Does:

• Reviews your claim and evidence
• Drafts a formal demand letter (carries more weight than yours)
• Negotiates with carrier’s lawyers
• Files suit in federal admiralty court if needed
• Handles vessel arrest if required
• Maximizes recovery (often gets you more than you thought possible)

Step 8: The Insurance Interplay – Who Pays What

You may have both cargo insurance and a claim against the carrier. They are separate.

If You Don’t Have Cargo Insurance:

You’re relying entirely on the carrier’s liability. That’s why following all these steps perfectly is critical. You must prove the carrier was negligent and that the damage is not covered by their defenses.

Step 9: Settlement vs. Lawsuit – The Math

Most cargo claims settle before court. Here’s how to decide:

Accept Settlement If:

• Offer is 70% or more of your claim
• Legal costs would eat up the difference
• Time to trial is more than a year
• Carrier is financially shaky (better to get something than nothing)

Reject and Sue If:

• Offer is less than 50% and you have strong evidence
• Carrier is clearly at fault (e.g., container dropped at terminal)
• Claim is over $50,000 and you have a lawyer on contingency
• Carrier’s denial is obviously bogus

Step 10: Filing Suit – When Push Comes to Shove

If settlement fails, you file in federal admiralty court (U.S.) or the appropriate court under your jurisdiction clause.

The Lawsuit Process:

1. Complaint filed – sets out your claim and legal basis
2. Summons served on carrier
3. Answer filed by carrier (they deny everything)
4. Discovery – you demand documents, logs, maintenance records, crew statements
5. Depositions – you question their people under oath
6. Summary judgment motion – if facts are clear, ask judge to rule without trial
7. Trial – if needed, present evidence and witnesses
8. Judgment – win, lose, or settle during trial

Timeline:

• File within 1 year of delivery (COGSA)
• Discovery: 3-6 months
• Summary judgment: 6-9 months
• Trial: 12-18 months after filing

Most cases settle during discovery. The carrier doesn’t want you seeing their maintenance logs and crew depositions.

Common Pitfalls That Kill Claims

1. Missing the notice deadline. Even one day late can be fatal.
2. Missing the one-year suit deadline. No extensions, no excuses.
3. Throwing away damaged cargo. Insurer/carrier will claim you destroyed evidence.
4. Not documenting the scene. Photos from three days later are useless.
5. Accepting a clean B/L without checking. If you see damage at loading, note it on the B/L.
6. Signing a delivery receipt that says “received in good order.” Always note damage on the receipt.
7. Not hiring a surveyor for big claims. Your word vs. theirs is a losing battle.
8. Threatening but not following through. If you say you’ll arrest the vessel, be ready to do it. Empty threats destroy credibility.

James Wilson – small shipowner, cargo claimant, and man who’s collected from carriers who thought they could cheat him.