Marine Claims Advocacy for Freight Forwarders
Global Trade in Goods Reached $28.5 trillion in 2021, with over 23 million TEUs being shipped around the world
After taking a hit from the pandemic, the logistics and transportation industry has seen encouraging signs of recovery.
But there’s a flip side to the coin: a significant increase in the frequency and severity of cargo claims.
• The e-commerce boom
• Supply disruptions
• Port congestion
These factors have led to shipping delays. And the longer cargo is in transit, the more likely it is that something goes wrong: freight loss, cargo damage, bulk cargo shortage, abandonment…
Cargo claims in shipping are no longer isolated occurrences. In fact, on average, 1% of shipments result in freight claims.
Now comes the tricky part. When an exporter or importer encounters lost or damaged freight, they turn to you, their carrier or forwarder. And they are likely to hold you liable for the incident.
But the question is: Are you actually liable?
When it comes to Freight Forwarder and NOVCC Liability, Nothing’s Black and White
Blurred lines. That may be your perception of the responsibilities involved in the transport of goods.
Check out this example.
A consignee abandons the cargo because the delivery costs are higher than the actual value of the goods.
As a freight forwarder, you’d be liable if the delivery costs increased due to your negligence. You’d be at fault if the cargo incurs demurrage, detention and storage because:
- You didn’t issue a cargo arrival notice
- You didn’t clear customs timely
However, if you couldn’t clear the cargo because the shipper or consignee didn’t provide you with the documentation needed, there shouldn’t be any liability for you.
Unless you have a thorough knowledge of the legal nuances that may shift liability from one stakeholder to another, you may end up paying for someone else’s mistake.
Moving Cargo on Behalf of Your Customer Entails a Number of Unique Risks and Responsibilities
Including but not limited to:
Cargo damage
Due to insufficient packaging of the cargo, bad stowage, inadequate ventilation, among others.
Freight loss
Due to containers going overboard or theft while in your custody
Cargo abandonment
Due to the receiver’s insolvency, delays or issues related to the sales contract.
Delays
Due to incorrect documentation being submitted to the customer or filed with customs.
Subcontracting liability
You may receive a claim for cargo damage and need to recourse against the subcontracting effective carrier.
Financial loss
If your customer doesn’t settle the bill after you provide your service.
All these exposures lead to your (already overloaded) team spending more and more time on cargo claims handling. With the resulting piles of paperwork and to the detriment of your customers.
The fact is customers rely on freight forwarders because of your experience in moving cargo from point A to point B using the most suitable resources and routing.
That’s what you excel at and where your focus should be.
Rather than on figuring out whether you’re liable for costly freight damage claims, while ensuring compliance with shipping laws and regulations.
Or on trying to decipher freight forwarders liability insurance policy wording to find out whether you are covered when cargo claims happen.
Stop Struggling with Legalese Seek Advice from a Legal Team Specialised in the Transportation Industry
Cost Savings
Our service fees are transparent. No hourly rates that cost you a fortune at the end of the month. Plus, we pursue your recoveries on the basis of "“No cure, No pay”.
Scalability
Freight claims and cover implications may be holding you back. Engaging our expert legal team allows you to keep developing your business, even in the face of catastrophic incidents.
Agreeable Settlements
We bring opposing positions closer together thanks to our legal knowledge (and common sense). We stay out of court and resort to alternative dispute resolution instead.
Visibility
You’ll receive monthly reports, so you are never left wondering how far along your recovery is. We have a data- and IT-centric approach to business.
Customer Care
A lack of legal knowledge may paralyse you at a time when your customer needs answers. We help you make educated decisions so you can act swiftly and show your customer that you care.
Global Presence
Shipping knows no borders. And neither does our expert legal team, who can support you anywhere in the world. You can address us in as many as 9 languages.
Expertise
Qualified legal advice for your peace of mind. Even the most complex cargo claims will lead to better outcomes for your business and your customers, thanks to our experience in the transportation industry.
Compliance
Keeping pace with fast-changing trade regulations is a challenge. And failure to do so may cost you a pretty penny. Rely on well-versed professionals to ensure your regulatory compliance
We Achieve the Best Outcome for Your Freight Loss and Damage Claims
Legal Consultancy
In your logistics operations, you may be faced with all types of cargo claims. Which means you have to stay on top of regulatory changes regarding:
- Liability – as you’ll need to prove there was no negligence of your part, and master the game of shifting liability.
- Deadlines – freight damage claims must be filed within a given timeline, based on the type of freight and contract provisions.
- Paperwork –incomplete or incorrect paperwork may result in marine cargo claims being denied.
- Evidence – if you want your forwarder liability insurance to protect you, you’ll need to provide proof that you aren’t to blame for the freight damage.
Let’s be clear. With the vast range of marine issues you may encounter and with all stakeholders involved in logistics, there are bound to be gaps in your in-house legal expertise.
Our legal team fills them by providing you with on-demand regulatory and transactional support.
Recoveries
- When freight charges aren’t settled due to cargo damage being used as a reason to delay payment
- When your customer’s insurance company attempts to recoup the cost for a claim they paid
- As a contractual carrier, you may receive a claim for cargo damage and need to recourse against the subcontracting effective carrier.
This is your puzzle
And we make sure all its pieces fit seamlessly with our services for insurance carriers
Customised Training
Good practices when you’re faced with freight loss and damage claims can reduce the likelihood of forwarder and NVOCC liability.
We help your in-house staff understand the implications cargo loss and damage may have, and give them tools to look out for your best interest.
The result of our training will be a black and white procedure to reduce risk in the event of freight damage.
• Getting written instructions from customers
• Managing subcontractors
• Monitoring the issue and release of documents
• Handling dangerous goods
• Dealing with insurance claims
In a nutshell, everything needed to keep your freight forwarder liability insurance coverage and prevent loss of profit.
Q & A Find Out How We Help You Deal with Cargo Claims
We only charge you a service fee, which is a small percentage of the amount we get you back.
You can count on it, as we safeguard your financial interests by:
- Protecting you against sanctions
- Ensuring you aren’t held liable for any freight damage claims where another party is at fault
- Collecting outstanding freight invoices on your behalf
- Pursuing your recoveries on a “No cure, No pay” basis.
We have a hands-on approach to providing legal advice. Being experts in logistics and transportation and having our own claims handling division, we understand the intricacies of international trade.
We’ll assess all possible scenarios and ensure we achieve the best outcome when you’re confronted with freight claims.
