Operational Guide · Registers & Logbooks

# Managing Cargo Claims

The difference between a claim that is rejected and one that costs the Company dearly is often decided in the first few days after discharge: the quality of the documentation gathered on board.

cargo claim P&I Club claims documentation

## Operational Explanation

A cargo claim arises when the cargo receiver alleges a loss, shortage or damage relative to what was declared on the bill of lading: standard P&I insurance cover protects the shipowner's liability for loss, shortage, damage or delay relating to the carriage of cargo on the insured ship.

The effective management of a cargo claim depends largely on the quality of the documentation gathered on board at the time of loading and discharge: the condition of the cargo at loading, any reservations noted on the bill of lading, temperature and environmental conditions during transport, and an objective account of events that neither the shipowner nor the receiver can credibly dispute.

Modern maritime intelligence tools (high-frequency AIS data combined with satellite imagery) have transformed the claims-handling function, making it possible to reconstruct with greater precision the voyage conditions relevant to a dispute.

## Regulatory Reference

Insurance cover under the P&I Club Rules (the rules of each Protection and Indemnity Club); carrier liability under the Hague-Visby Rules or the rules applicable under the bill of lading; timely notification of the claim according to the contractual terms and the applicable time-bar limits.

## Scope of Application

Every loading/discharging operation in which the receiver alleges a discrepancy relative to what was declared on the bill of lading, for any type of ship and cargo.

## Procedure / How to Complete It

1. Document the condition of the cargo at the time of loading, noting on the bill of lading any reservation relating to non-conforming condition, quantity or packaging.
2. Retain documentation of temperature, ventilation and relevant environmental conditions during transport for sensitive cargoes.
3. At the time of discharge, document photographically and in writing the condition of the cargo before delivery to the receiver.
4. Notify the P&I Club and the local Club Correspondent immediately upon receiving notice of a claim or observing a significant anomaly.
5. Collect and retain all relevant documentation (loading plan, temperature logs, photographs, correspondence) before it can be lost or overwritten.

## Practical Example

Example management case: at the discharge of a bulk cargo, the receiver alleges a shortage relative to the declared quantity; the crew immediately provides the draft survey documented at loading and discharge, the bill of lading with any reservations noted, and photographs of the holds before discharge, allowing the P&I Club to assess the merits of the claim on an objective basis.

## Real Cases

Handling complex cargo claim cases typically requires an objective reconstruction of events that neither the shipowner nor the receiver can credibly dispute: the growing use of high-frequency AIS data combined with satellite imagery has made it possible to independently verify the declared voyage conditions, reducing the scope for unfounded disputes.

## Common Mistakes Mistake Library

Mistake | Consequence | How to avoid it
--- | --- | ---
No reservation noted on the bill of lading despite the cargo's condition being visibly non-conforming at loading | Presumption of carrier liability for pre-existing damage | Always note every visible reservation on the bill of lading at the time of loading
Delay in notifying the P&I Club after receiving a claim | Loss of useful time for gathering fresh evidence and for optimal handling of the case | Notify the Club and the local Correspondent immediately upon receiving notice of the claim
Insufficient or missing photographic documentation of the discharge | Difficulty demonstrating the condition of the cargo at the time of delivery | Always photographically document the condition of the cargo before delivery to the receiver

## PSC Observations

The handling of cargo claims is not typically subject to direct PSC verification, being a commercial/insurance matter; however, the quality of cargo documentation (loading plan, draft survey, Cargo Record Book) verified in other PSC contexts is the same documentation that supports the handling of a claim.

## Operational Tips

- Always note every visible reservation on the bill of lading at the time of loading, even when it seems a formality.
- Notify the P&I Club and the local Correspondent immediately upon receiving notice of a claim: time lost is evidence lost.
- Photographically document the condition of the cargo before delivery to the receiver, not only for visibly problematic cargoes.

## Checklist

- Cargo condition documented and reservations noted on the bill of lading at loading
- Temperature and environmental condition logs retained for sensitive cargoes
- Photographic documentation of the discharge gathered before delivery
- P&I Club and local Correspondent notified immediately in the event of a claim
- All relevant documentation collected and archived before it can be lost

## FAQ

What does standard P&I insurance typically cover for cargo?
The shipowner's liability for loss, shortage, damage or delay relating to the carriage of cargo on the insured ship, according to the specific rules of the P&I Club to which it belongs.
Why is it important to note reservations on the bill of lading?
Because it formally documents the condition of the cargo at the time of loading, distinguishing any pre-existing damage from damage occurring during transport, and reducing the carrier's exposure to unfounded claims.
When should the P&I Club be notified of a possible claim?
As soon as possible, as soon as notice is received from the receiver or visible damage is observed during discharge: a delay in notification can compromise the Club's ability to intervene effectively and gather timely evidence.
🎬 Additional photos, videos and interactive diagrams for this topic will be available in a future version of the platform.

## Related Topics

Loading/Discharging Plan Cargo Record Book

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