Cargo claims are lost on timing far more often than on merits. Notice periods are short, the one-year limitation under the carriage regime is unforgiving, and the evidence that proves the claim — a joint survey at the moment of discharge — cannot be recreated a fortnight later.

If a container has arrived short or damaged, what you do in the first days decides whether you have a claim at all.

Establish who is actually liable

Three parties, three different regimes.

The carrier, under the bill of lading, for loss or damage occurring during carriage. Liability is governed by the applicable carriage regime and is subject to package limitation — a cap per package or unit — which frequently means the recoverable amount is well below the value of the goods.

The freight forwarder or NVOCC, depending on whether they contracted as principal carrier or merely as agent. This distinction is decided by the documents, and it determines whether you have a claim against them at all.

The insurer, under a marine cargo policy. Where cover exists, this is generally the fastest and most complete recovery, and the insurer then pursues the carrier by subrogation.

Also possible, depending on facts: the terminal or port operator for damage after discharge, the haulier for inland damage, and the supplier, where the goods were defective or inadequately packed before shipment.

Look at whose custody the goods were in when the loss occurred — that is the question everything turns on.

Give notice immediately

Notice of loss or damage must be given to the carrier promptly, and where damage is not apparent, within the short period allowed after delivery.

Failure to give notice does not automatically extinguish the claim, but it creates a presumption that the goods were delivered in good order — which is a serious evidential handicap.

Give notice in writing, to the carrier and to the agent, immediately, even before the extent of loss is known. A holding notice costs nothing.

The survey is the case

Arrange a joint survey with the carrier's and the insurer's representatives at the point of discharge or delivery, before the cargo is moved or the container unstuffed and dispersed.

Record and photograph:

  • The container seal and its number, and whether it matched the documents
  • The container condition — holes, dents, water ingress, previous repairs
  • The stowage as found on opening, before anything is removed
  • The damage, in situ
  • Any weighing or tally at discharge

Once cargo is unstuffed and moved into a warehouse, proving that damage occurred during carriage rather than afterwards becomes very difficult. Surveys arranged a week later are the most common reason otherwise good claims fail.

The time bar

Claims against the carrier under the applicable carriage regime are subject to a one-year limitation, running from delivery or from the date the goods should have been delivered.

That period is short, it is applied strictly, and it passes quickly while correspondence goes back and forth. Where a claim is not resolved and the year is approaching, either obtain a written extension from the carrier or issue proceedings. Correspondence alone does not stop time running.

Where the vessel is the target

The admiralty jurisdiction of the High Court of Sindh allows a maritime claim to be pursued against the vessel, including by arrest — which secures the claim and frequently produces prompt security or settlement.

Arrest is time-critical in a different sense: a vessel is in port for a limited window, and an application not ready when she berths is of no use. Preparation, not the court, is the constraint. See shipping and admiralty.

Insurance points

Read the policy before the shipment, not after the loss.

  • Check the cover level — all-risks versus named perils
  • Note exclusions, particularly inadequate packing, inherent vice and delay
  • Comply with the notification requirement, which is usually immediate
  • Do not dispose of damaged goods or complete repairs before the surveyor has attended
  • Preserve the subrogation position: do not sign a release in favour of the carrier without the insurer's agreement, as that can prejudice your own claim

Documents to assemble

The commercial invoice and packing list, the bill of lading, the insurance policy or certificate, the survey report, the delivery order and gate documents, photographs, tally and weighment records, evidence of the loss quantified, and the notice correspondence.

Claims presented as an organised bundle settle materially more often than claims presented as an assertion.

Practical advice

Notify immediately, survey before unstuffing, calendar the one-year bar the day the goods are delivered, and check whether your forwarder contracted as carrier or agent before you assume you have a claim against them.

If the consignment is also being held by customs, deal with release first — the demurrage clock runs regardless of who is right. See customs disputes at Karachi port.

How the firm can help

The firm has practised at Pakistan's principal port since 1959. We act for cargo interests, insurers, forwarders and carriers in cargo claims: notices, survey coordination, claims against carriers and forwarders, insurance recovery and coverage disputes, and proceedings including vessel arrest in the admiralty jurisdiction of the High Court of Sindh.

Time bars are short. If a consignment has arrived damaged or short, contact the firm or telephone the chambers before the cargo is moved.