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Who is responsible for the inflow of the container and how should the owner deal with it?
Aug 10,2024
On the stage of global trade, container transportation plays a vital role. However, when the container is unfortunately flooded, the definition of responsibility often becomes a thorny and complex issue, and the shipper also faces many challenges in this dilemma.
Judgment of 1. Responsibility
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Liability of the Transporter
- Negligence during transportation is one of the common causes of container flooding. If the ship encounters bad weather during the voyage, and the transportation company fails to take sufficient protective measures, or the crew makes mistakes in the operation, causing the container to be damaged and enter the water, the transportation party is to blame.
- For example, in a transoceanic transport, because the crew did not bind the container firmly, the containers collided with each other in a strong storm, causing the box to rupture and enter the water.
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Responsibilities of Container Suppliers
- If the container itself has quality defects, such as lax sealing, aging materials and other problems, resulting in water ingress, then the container supplier should bear the corresponding responsibility.
- For example, a batch of newly put into use containers, due to the quality of the sealant is not up to standard, cracks appear under normal transportation conditions, resulting in rainwater infiltration.
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Responsibilities of port stevedores
- Improper handling in port handling operations, such as rough handling, use of damaged handling equipment, etc., may damage the container and cause water ingress.
- There have been cases where the crane hook damaged the top of the container during port loading and unloading, and then encountered rain during transportation, and the rain entered the container.
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Own responsibility of the owner
- The owner may also be responsible for the ingress of water into the container if the goods are poorly packaged, do not take effective waterproofing measures, or if the goods are loaded with moisture-generating properties and are not treated in advance.
- For example, when the cargo owner is loading, the chemical raw materials that are easy to absorb moisture are not fully moisture-proof packaging, resulting in moisture absorption and moisture generation of the goods during transportation, and ultimately causing the container to enter the water.
Coping strategies of 2. cargo owners
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Act quickly, keep the evidence
- Once the container is found to be flooded, the owner should immediately notify the relevant parties and rush to the scene as soon as possible. Take detailed photos and videos of the water inflow and the damage of the goods, and record every detail, including the location of the water inflow, the damage degree of the goods, the state of the packaging, etc.
- At the same time, collect and properly maintain all transport-related documents, such as bills of lading, contracts of carriage, insurance policies, cargo lists, etc., which will play a key role in the subsequent liability determination and claim process.
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Notify relevant parties in time
- Promptly inform stakeholders such as transportation companies, container suppliers, insurance companies, and consignees of container water ingress. In the notice, clear and accurate information should be provided, including the time and place of the water intake, the preliminary estimated loss of the goods, etc.
- For example, within 24 hours after the cargo owner discovered that the container was flooded, he sent detailed notices to all parties in writing and email to ensure that all parties can understand the situation in time and make corresponding preparations.
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Entrusted professional inspection institutions
- In order to accurately determine the cause of the water inflow and the extent of the loss of the goods, the owner should entrust the inspection agency with qualification and professional experience to carry out the inspection as soon as possible. The inspection agency will conduct a comprehensive inspection and evaluation of containers and goods through scientific methods and professional equipment.
- For example, a professional commodity inspection company through the inspection of the container structure and the analysis of the physical and chemical properties of the goods, to provide the owner of the authoritative inspection report, strong support for the follow-up claims.
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Accurate assessment of loss
- Work with a professional appraiser to make a comprehensive and accurate assessment of direct losses (e. g. damage to goods, scrap) and indirect losses (e. g. contractual breach of contract due to delayed delivery, loss of market share, etc.).
- Assuming that a batch of electronic products are completely scrapped due to water ingress, not only the value of the product itself must be calculated, but also the liquidated damages paid for failure to deliver to the customer on time must be taken into account.
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Actively carry out claims negotiation
- Negotiate claims with parties that may be liable based on the attribution of responsibility and the assessment of losses. In the process of consultation, we should remain rational and firm, and safeguard our own rights and interests in a legal and compliant manner.
- If the transport company acknowledges partial liability, the owner shall negotiate amicably with it on the amount and manner of compensation in order to reach a mutually acceptable solution.
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Seek legal assistance
- If the claim negotiation cannot reach an agreement, the owner should not hesitate to seek legal assistance and resolve the dispute through legal channels. In legal proceedings, the previously collected evidence and professional inspection reports and evaluation reports will become powerful weapons.
- For example, a cargo owner decisively hired a lawyer to file a lawsuit after the breakdown of the claim negotiation with the transportation company, and finally obtained due compensation through the court's judgment.
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Strengthening preventive measures
- After this incident, shippers should learn a lesson and strengthen preventive measures in future cargo transportation. This includes choosing more reliable transport partners, using better quality containers, and improving the way goods are packed.
- For example, shippers decided to cooperate with transportation companies with good reputation and safety records for a long time, and invested in the research and development of more advanced waterproof packaging materials to reduce the possibility of similar risks.
In short, when the unfortunate incident of container flooding occurs, it is not easy to clarify the responsibility. The shipper needs to take a series of countermeasures quickly and decisively to minimize losses and safeguard his own legitimate rights and interests. At the same time, by strengthening prevention, reduce the probability of such risks in the future, to ensure the smooth progress of trade activities.
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