When cargo damage is found during discharge, the first steps are to record it while discharge is still under way, segregate damaged from sound cargo and notify the parties concerned in writing without delay. The position and appearance of damage in the hold cannot be observed again once the cargo has left the ship, so what is done in the first hours underpins any later claim.
What should be done first when damage is noticed?
The priority is to record the situation before it changes. The location of the damage in the hold, the quantity affected and its appearance should be photographed, and where appropriate discharge of the affected area may be paused briefly until the parties have been informed. Any decision to pause rests with those running the operation.
If wetting is suspected, clues to the source of water matter. Whether the wet cargo is found only under the hatch cover, around the bilges or throughout the stow says a lot about the likely cause.
Why should damaged cargo be segregated?
Mixing damaged and sound cargo makes it harder to quantify the damage and can spread it. Wet bulk cargo blended with dry cargo, for example, increases the risk of heating and caking.
Segregated cargo should be kept in a separate area, covered if possible, and its quantity recorded. Decisions to destroy, sell or reprocess damaged cargo should not be taken before the insurers and other interested parties have been informed.
Who needs to be notified?
Cargo damage usually concerns several parties. Notice should be in writing and given within the time limits set by the contract or the applicable rules; the parties should rely on their own contracts and advisers for those limits.
It is also wise to avoid statements that could be read as admitting liability and to gather the key documents early. The bill of lading, mate's receipt, statement of facts, stowage plan, loading and discharge photographs and weather records are usually the first items requested when a claim is assessed.
- The master, or the agent on the vessel's behalf
- Cargo underwriters or their local agent
- The seller or cargo owner
- The terminal operator, where relevant
- The onward haulier or receiving warehouse
What is a letter of protest and when is it issued?
A letter of protest is a written notice in which one party informs another of damage, shortage or irregularity it has found and reserves its rights. At discharge it is usually handed to the master by the receiver or the receiver's representative.
It states the date, vessel, hold, a description of the damage observed and a short explanation. Masters commonly sign for receipt only, which does not mean the content is accepted. The legal effect of a protest depends on the contract and the circumstances.
Why is a joint survey recommended?
Where damage is significant, a joint survey attended by representatives of both cargo and ship interests limits the risk of conflicting reports about the same event. Even if the parties do not agree on findings, having seen the same cargo at the same time narrows the dispute.
Observations, samples and photographs should be recorded jointly as far as possible, with each party free to state its own view separately.
Which observations matter for each type of damage?
Each type of damage leaves different clues. Tailoring observations to the damage type makes it much easier to establish the cause later.
- Wetting: location and spread of moisture, condition of hatch covers and bilges, preliminary fresh water or seawater test
- Heating: cargo temperature, discolouration, odour and position of the affected area in the hold
- Contamination: foreign matter, previous cargo residues and the boundaries of the affected area
- Physical damage: marks indicating whether damage stems from stowage or from handling
- Shortage: unit counts, check for cargo remaining on board and ship versus shore figures
How do load port records help explain damage at discharge?
When damage occurred is often established by comparing discharge findings with load port records. Pre-loading hold condition, rain stoppages, mate's receipt remarks and loading photographs are the key elements of that comparison.
Karan Gözetim provides supervision at both loading and discharge from its base in Gemlik; which stages are covered is agreed at the quotation stage.
Frequently asked questions
What if damage is only discovered after discharge?
Concealed damage, for example inside packaging, can appear after delivery. Notice should still be given promptly and in writing, although showing that the damage occurred during carriage is usually harder.
Should samples be taken from damaged cargo?
Where wetting, contamination or quality issues are suspected, samples help establish the cause. Sealing samples and sharing them between the parties is common practice.
Does the surveyor decide who is liable?
No. The surveyor records what is observed impartially. Liability depends on the contract, the applicable law and the parties' own assessment.
Topics
- cargo damage at discharge
- what to do when cargo is damaged
- letter of protest to master
- joint survey cargo damage
- damaged cargo notification
- discharge damage report