Shipping containers are the backbone of global trade, but sometimes, despite all precautions, damage container can occur during transit. Whether it is a minor dent or significant structural damage, knowing what steps to take when your container is damaged can help you resolve the issue swiftly and effectively.
In this guide, Azure Risk will walk you through the necessary steps to follow when you face a damaged container during shipping, ensuring minimal disruption to your supply chain.
Let’s get straight to the point!
Why Is It Important to Handle Damaged Containers?
Container damage can occur at any stage of transportation, leading to significant financial losses and operational disruptions.
According to the Allianz Global Corporate & Specialty (AGCS) Safety & Shipping Review 2020, improper handling during loading and unloading is the leading cause of container damage, accounting for 65% of related claims. In 2019, APM Terminals recorded over 1,200 incidents globally which is highlighting the major impact of container damage on the industry.
However, the consequences go beyond financial loss. Damaged containers can also pose serious safety risks, environmental hazards, and legal issues under international maritime regulations. To minimize these risks, logistics companies in Gujarat and worldwide must implement clear and effective procedures for handling damaged containers.
By addressing container damage proactively, your businesses can reduce financial risks, ensure safe operations, and comply with international standards.
What Causes Container Damage During Shipping?
Before diving into the steps to take when your container is damaged, it is crucial to understand the common causes of container damage during shipping. Knowing the reasons can help you better prepare for future shipments.
Here is what you should know:
1. Weather Conditions
Strong winds, storms, and heavy rain are some of the natural factors that can cause damage to containers.
2. Improper Handling
Rough handling during loading and unloading can lead to dents or cracks in the container.
3. Accidents and Collisions
If the container is involved in an accident during transit, it can sustain significant damage.
4. Overloading
One of the causes of container damage is overloading beyond its weight capacity, which can lead to structural damage, especially during transport
5. Environmental Conditions
Containers are at risk of heat damage or corrosion if not stored properly, particularly when placed near heat sources.
How to Handle a Damage Container During Shipping
Step 1: Document the Damage Immediately
When you first notice that your container has been damaged, the first thing you need to do is document it.
The following actions are required:
- Take Photos and Videos: Capture the damage from multiple angles, make sure you are showing external and internal issues with the container.
- Record the Shipping Details: Make sure to note the container number, shipment details, and the time the damage was discovered.
This documentation will be vital for your insurance claims or negotiations with the shipping company.
Step 2: Contact the Shipping Company or Freight Forwarder
Once you have documented the damage, your next step is to contact the shipping company or freight forwarder responsible for your shipment. Notify them about the damage and provide them with all the necessary documentation.
The following paperwork you must be prepared:
- First notice of intent to claim.
- Survey report from a surveyor that outlines the extent of the damage.
- Photographs.
- Commercial invoice.
- Claim statement which is filled with detailing the loss in commercial value.
- Packing list contents of the container.
- Delivery receipt as a proof of the successful delivery of the goods.
- Container de-stuffing tally sheet from the container during unpacking.
Here is what you need to do:
- Report the Damage: Provide the shipping company with the photos and videos of the damaged container.
- Request an Inspection: Ask for an official inspection to determine the extent of the damage and how it occurred.
Shipping companies often have a claims process in place, and they may offer compensation or assistance based on their findings. Prepare accordingly!
Step 3: Assess the Damage and Determine the Impact on Your Cargo
Once the shipping company has inspected the container, it is time to assess the impact on your cargo. If the container is compromised, you need to determine whether your goods have been damaged or if they are still safe for delivery.
Here is what needs to be done:
- Check for Leaks or Structural Issues: Inspect the container for any leaks or breaches that could damage your cargo.
- Check the Condition of Your Goods: Ensure that your goods are still intact and haven’t been harmed by exposure to the elements.
If your cargo is damaged, you may need to take additional steps, such as filing a claim for the goods as well. Get in touch with your insurer right away!
Step 4: File a Damage Claim With Your Insurance Company
After assessing the damage and confirming that your cargo is either safe or damaged, the next step is to file a claim with your transport insurance company. This is where having a robust insurance policy can make a difference.
Here are the steps you should follow:
- Review Your Insurance Policy: Make sure that the damage to the container is covered under your policy. The best policies will cover damages due to accidents, weather, and mishandling.
- Submit the Documentation: Provide all the photos, videos, and reports from the inspection to your insurance provider.
This process may take some time, but it is necessary to recover your losses and mitigate any financial impact from the incident.
Step 5: Prevent Future Container Damage
Once the damage has been dealt with, it is time to look ahead and prevent similar issues in the future.
Consider implementing the following measures:
- Choose a Reliable Shipping Company: Work with reputable shipping companies that have a track record of handling containers safely.
- Ensure Proper Loading and Securing: Make sure your goods are securely loaded and that containers are properly sealed before shipping.
- Consider Insurance Coverage: Assure that your transport insurance covers a wide range of potential risks.
Azure Risk – Your Trusted Partner in Shipping Insurance
Dealing with a damage container during shipping can be stressful, but by following these steps, you can resolve the issue efficiently and minimize the impact on your business. And having the right transport insurance is crucial for protecting them.
Azure Risk is the official Asia Pacific Broker for World Insurance, offering you comprehensive insurance solutions that protect your shipments against various risks, including damage containers.Contact Azure Risk today to ensure your shipments are adequately covered!
