EXPRESSIONS USED IN DESCRIBING CARGO DAMAGE AND FILING CARGO CLAIMS

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1 EXPRESSIONS USED IN DESCRIBING CARGO DAMAGE AND FILING CARGO CLAIMS

2 INTRODUCTION Merchant shipping or carriage of goods by sea is the lifeblood of the world economy, carrying 90% of the international trade with approximately 100,000 commercial ships worldwide.

3 Carriage of goods by sea typically involves multiple parties and numerous related contracts. When cargo is lost or damaged it is not always easy to detremine who has been at fault or who should be liable.

4 TYPES OF CARGO Basically there are two types of cargo; bulk cargo and general cargo Bulk cargo is divided into liquid and dry bulk cargo Liquid bulk cargo (such as crude oil or fuel oils) is carried in tankers Dry bulk cargo (such as coal, grain, ore and sugar) is carried in dry bulk carries

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7 General cargo can be divided into containerised, noncontainerised and refrigerated cargo Non-containerised goods may be packaged in bags, bales, cases, steel drums, etc. and carried in general cargo vessels Perishable goods such as fruit, meat and dairy produce are carried in ships with refrigerated hold called reefers Containerised goods are packed in containers and carried in container ships

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11 TYPES OF CARGO DAMAGE AND THEIR TYPICAL CAUSES Most of the cargo loss or damage resulting in cargo claims can be prevented by a proper maintenance of vessels and proper care of cargo. If a vessel causes loss or damage to her cargo and if carriers are held responsible, carriers have to compensate cargo interests for their damages.

12 DAMAGE BY TEMPERATURE Some commodities may be affected by temperature fluctuations (which may cause condensation or accelerate deterioration) or extremes of temperature which may shorten the "shelf life" of the commodity, or even change its chemical composition. Some commodities are so susceptible to temperature change or the degree of temperature at which they may be carried, that controlled temperature may be a requirement. Some commodities are liable to spontaneous heating and should be stowed away from local sources of heat or protected from direct sunlight

13 CARGO MIXTURES Claims of this class are mostly associated with bulk grain and seed cargoes Such mixtures may also occur in spite of packaging, e.g. plastic granules infiltrating bags of rice. Cargoes of this kind should be separated in such a manner as to prevenet mixture.

14 RUST DAMAGE Due mainly to moisture, rain, fresh or salt water, and sweat (and the presence of oxygen) rust is a corrosion producing red discolouration and, in certain circumstances, heavy pitting. The moisture causing the rust may be introduced by: leakage, other cargo, packaging, green timber (dunnage), rain (when ashore, or when the hatches are open), or even the ventilation itself. Goods liable to damage by rust should not be stowed in the same compartment or container with cargo, packaging or dunnage which is liable to give off moisture.

15 PILFERAGE In order to protect the ship from blame and responsibility for pilferage occurring onshore the greatest vigilance by the Ship's Officers is necessary. Incoming cargo should be carefully examined - which is best done on the dock or wharf rather than on board - and every unsound or suspicious package rejected until its contents have been ascertained. When discharging, clean receipts for all packages delivered should be demanded except, of course, for hose actually found to be short of contents. To guard against pilferage on board ship, the Ship's Officers should organise a close watch on the holds and other cargo liable to be broached. When many holds containing broachable cargo are being worked, responsible ship's personnel (and where necessary special shore watchmen) should be employed in watching cargo.

16 RATS, MICE, SMALLER VERMIN In the interests of health as well as the preservation of cargo from rat damage, the fumigation of holds, peaks and accommodation generally is at times essential. Certain commodities are also liable to introduce vermin in the ship. Bales of rags, unless thoroughly fumigated, often harbour lice and other insects which are carriers of certain diseases For instance, timber dunnage from temperature regions may harbour eggs or larvae, so that some countries (particularly Australasia), have developed strict safeguards and regulations to prevent the import of these insects.

17 MECHANICAL DAMAGE While special lifting and handling gear may be used for certain types of cargo, the improper use of such equipment may damage the cargo or its packaging. For instance, the use of cargo hooks may be indispensable in the handling of a large variety of break bulk commodities, but with bagged cargo, fine baled goods, hides, furs, roils of paper and liquid containers, crates and the like, packages whose contents are exposed or unprotected, the use of cargo hooks may cause great damage and should be strictly prohibited.

18 PHRASES ASSOCIATED WITH CARGO S POTENTIAL TO BE DAMAGED To + aux. v. be + liable + prep to + damage To + aux. v. be + susceptible + prep to + damage To + aux. v. be + subject + prep to + damage To + lend (v) + oneself (pron.) + prep to + damage

19 Examples: The cargo of steel is liable to damage by rust. Butter is susceptible to damage by heat. Nuts and beans are subject to damage due to heating. Furniture lends itself to mechanical damage.

20 CARGO CLAIMS Once a damage of cargo has ocurred, cargo claim should be filed A cargo claim is a written demand for compensation from a carrier for loss or damage to goods, which is alleged to have been caused by that carrier. Cargo claim may be filed by the shipper, consignee or the owner of the goods Shipper is the person or company who is usually the supplier or owner of commodities shipped. Also called Consignor. Consignee is the party shown on the bill of lading or air waybill to whom the shipment is consigned. Need not always be the buyer, and in some countries will be the buyer's bank. Carrier is a person or company that transports goods or people for any person or company and that is responsible for any possible loss of the goods during transport. Carrier can be a shipowner or a charterer.

21 Other terms used for cargo claims are freight claims, shipping claims, transportation claims, loss claims or damage claims. Each carrier typically provides a form specifically for filing freight claims. However, by law, no particular form is necessary, as long as the following four details are present: The shipment must be specified The loss or damage type must be specified The total of the amount claimed must be specified A clear demand for payment must be present

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23 Please print this letter with your letter-head Date : To : (Insert name and address of the carrier) Dear Sirs, Re : B/L (or AWB No) Voyage : Description of cargo damage Delivery date : This is to report that damage or loss is found on this shipment. Since the damage or loss might occur whilst the whole shipment was in your custody and control, we hereby hold you fully liable for our loss sustained and reserve the right to claim against your company. Our claims documents will be forward to you shortly. We hereby invite you to attend a joint survey with our assigned surveyor (xxx) at (time and location). Please confirm by return if you or your surveyor will be available to attend the joint survey. Yours truly, Authorized signature Contact numbers address

24 DESCRIBING CARGO DAMAGE Most common structure: Verb + Noun (object) collocations To cause damage To suffer damage To withstand damage To result + prep. in + damage The use of crowbars caused damage to both cargo and the packaging. Because of the generator failure, all the frozen, chilled and aircooled cargo suffered a great deal of damage. Crated fruit can withstand damage from overstowing. The use of hooks resulted in considerable damage to bagged cargo

25 Noun + Verb collocations Damage ensues Damage occures A number of bags of urea were badly torn and considerable damge/loss ensued/ocurred.

26 Verb be or become + adjective/past participle Some cargoes were affected by temperature fluctuations. (Passive) Tobacco has become soft, stale and mouldy. The ship became rat-infested Verb be + found + to be + adjective (Active: to find sth + adjective) The packages were found to be damaged/short of contents. (Passive)

27 Adjective + Noun collocations Processed steel may suffer irreparable/heavy damage if rust is permitted to gain hold. Air-cooled cargo suffered considerable/substantial damage.

28 Adjectival and adverbial Prepositional phrases expressing cause of damage Owing to negligent handling by Stevadores during discharge heavy damage has been caused to the goods. Cargo was damaged due to heating. The cargo was damaged because of exposure to rain.

29 CONCLUSION Transport of goods by sea is a complex endevour including many parties and documents and my different types of cargo that can be damaged. Once the damage occurs, the proper language should be used to identify and describe cargo damage and file appropriate cargo claims.