If the carrier lost my cargo can I hold them liable..?? This is the question from a reader Erik.. His problem is as below..
HUGE issue with a carrier.
The carrier lost track of their container with our cargo load, soon after departure. The container was not found within 9 months and declared the cargo ‘lost’ and the carrier confirmed responsibility for all cost and damages.
Then somehow the container was found 2 months later at a random port between POL and POD. The cargo is now in an unusable state and has to be destroyed.
The carrier does not deny responsibility, but does not want to reimburse our cargo value, removal costs and only repay the shipping costs.
Their advice is, that our marine insurance should cover the cost of the cargo and its destruction.
In my opinion, because the carrier declared the cargo ‘lost’ they are responsible for all cost regardless if they found the container.
Especially since the 9 month BL term has lapsed. My question is, should we hold the carrier liable for all costs and push this towards court or is the carrier right?
Curious to see if there’s any similar experience out there and if there is some basic advise available for such an issue.
Erik, there are several factors involved here, chief among which, will be the shipping line, the type of bill of lading issued and the terms and conditions of carriage.. You also mentioned that the carrier confirmed responsibility of all costs and damages (before the container was eventually found).. How exactly did they confirm this responsibility..??
Each line has their own set of terms and conditions governing the bill of lading and the contract of carriage.. These terms and conditions will outline the carriers responsibility and also the compensation and limits of liability of the carrier.. Generally the carriers have a limit of compensation that they will provide and it might not cover the value of your cargo..
Your best option would be to approach your insurance company who will do the needful to ascertain how, where and by whose actions this loss occurred and take remedial action..
Anyone else has any other suggestion, please feel free to add..