CARRIER LIMIT OF LIABILITY FOR INTERNATIONAL SHIPPING?

 

CARRIER LIMIT OF LIABILITY FOR INTERNATIONAL SHIPPING?

(IN THE EVENT OF DAMAGE, LOSS, OR DELAY OF CARGO)

 

WHAT IS CARRIER LIMIT OF LIABILITY?

•      •       THE CARRIER LIMIT OF LIABILITY DETERMINES THE MAXIMUM AMOUNT OF MONEY THAT CARRIERS CAN BE HELD LIABLE FOR IN THE EVENT OF DAMAGE, LOSS, OR DELAY OF CARGO.
• •       HOWEVER, LIMITS OF LIABILITY VARY BETWEEN CARRIERS AND SITUATIONS.

WHAT IS COVERED?

• •       CARRIER LIMIT OF LIABILITY COVERS DAMAGE OR LOSS THAT OCCURRED DUE TO CARRIER NEGLIGENCE.
• •       TO SETTLE A CLAIM, THE RESPONSIBILITY IS TYPICALLY ON THE IMPORTERS / SHIPPER TO PROVE THAT THE DAMAGE WAS THE FAULT OF THE CARRIER.
• •       THERE IS ALSO NO OFFICIAL DEADLINE TO SETTLE A CLAIM SO THAT THE PROCESS COULD DRAG ON FOR MONTHS.
• •       FOR A CARRIER TO BE LIABLE FOR LOSS OR DAMAGE, IMPORTERS / SHIPPER HAVE TO PROVE THAT THEIR CARGO WAS IN GOOD CONDITION WHEN GIVEN TO THE CARRIER, BUT WAS DELIVERED DAMAGED, OR NOT DELIVERED, AND THEY MUST PROVE THE AMOUNT OF THE DAMAGE THEY ARE CLAIMING.
• •       IMPORTERS / SHIPPER MUST FILE CLAIMS WITHIN NINE MONTHS OF THE DATE UPON WHICH DELIVERY WAS OR SHOULD HAVE BEEN MADE.
• •       CARRIERS HAVE 30 DAYS TO ACKNOWLEDGE A CLAIM HAS BEEN MADE AND MUST RESPOND TO THE SHIPPER WITHIN 120 DAYS.

WHAT IS NOT COVERED?

• CARRIERS ARE NOT HELD RESPONSIBLE FOR DAMAGE OR LOSS THAT OCCURS DUE TO:

1. AN ACT OF GOD, LIKE EXTREME WEATHER OR A NATURAL DISASTER
2. FIRE
3. INTERFERENCE BY A PUBLIC ENEMY
4. ACT OF WAR, LIKE STRIKES, RIOTS OR CIVIL FUSSES.
5. IMPROPER PACKAGING OF CARGO BY THE SHIPPER
6. GOVERNMENT ACTION, LIKE ROAD CLOSURES, QUARANTINES, OR TRADE BANS.
7. GOODS THAT ARE PRONE TO SPOIL OR BECOME DEFECTIVE OVER TIME, LIKE CROP, TOBACCO, OR MEDICAL.
8. LATENT DEFECTS TO THE HULL OR MACHINERY (A LATENT DEFECT IS DEFINED AS A DEFECT WHICH EXISTS AT THE TIME OF ACCEPTANCE BUT CANNOT BE DISCOVERED BY A REASONABLE INSPECTION).
9. CRIMINAL ACTS OR NEGLIGENCE BY MASTER OR CREW

CARRIER LIABILITY CLAIMS PROCESS VS. CARGO INSURANCE CLAIMS PROCESS

 

A . IF YOU ARE MAKING A CLAIM AND YOUR FREIGHT IS ONLY COVERED BY CARRIER LIMIT OF LIABILITY COVERAGE:

1. YOUR CLAIM MUST BE FILED WITHIN NINE MONTHS OF DELIVERY.
2. THE DELIVERY RECEIPT HAS TO INCLUDE NOTICE OF DAMAGE.
3. PROOF OF VALUE AND LOSS IS REQUIRED.
4. CARRIERS HAVE 30 DAYS TO ACKNOWLEDGE YOUR CLAIM AND HAVE TO RESPOND WITHIN 120 DAYS.
5. CARRIER NEGLIGENCE HAS TO BE PROVEN.

B. IF YOUR SHIPMENT IS COVERED BY FREIGHT INSURANCE:

1. PROOF OF VALUE AND LOSS IS REQUIRED.
2. CLAIMS ARE TYPICALLY PAID WITHIN 30 DAYS.
3. YOU ARE NOT REQUIRED TO PROVE CARRIER NEGLIGENCE.