What to Do If Cargo Is Damaged During Transport
Damage to cargo during transport is an unpleasant but very real situation in international logistics. The causes can vary: traffic accidents, sudden braking, shifting pallets, damage to the tarp, moisture ingress, temperature control violations, and errors during loading or unloading.
Moreover, the damage isn’t always obvious. Sometimes, deformed packaging, broken goods, or a leaking IBC container are immediately visible. In other cases, the cargo appears normal on the outside, but only after unpacking or further inspection is it discovered that the goods or raw materials have lost their original properties.
Therefore, if a shipment arrives damaged, the most important thing is not to try to immediately determine who is at fault. First, you must properly document the condition of the goods, gather the necessary documents, and determine exactly what happened.
Following the correct procedure is especially important for international road transport, since a single transport chain may involve the shipper, consignee, freight forwarder, actual carrier, and insurance company.
The first step is to properly document the damage
If damage is discovered during unloading, it is advisable not to move the cargo, remove the packaging, or discard damaged items until the initial documentation has been completed.
First, take photos and videos of the general condition of the cargo inside the vehicle or container. After that, separately document the damaged areas, the condition of the packaging, the markings, and the numbers of the pallets, IBCs, drums, or other cargo units.
It is important to document not only the defect itself but also how the cargo was positioned inside the vehicle. If there are signs of shifting, impact, moisture, or leakage, these must also be documented.
Even before shipment, it is important to follow the rules for packing and securing cargo, taking into account its weight, dimensions, properties, and the chosen mode of transport. Later on, the condition of the packaging and the method of securing the cargo may be important in determining the causes of damage.
If the vehicle has already been completely unloaded, the pallets have been moved, the damaged packaging has been discarded, and the vehicle has left, it will be significantly more difficult to objectively reconstruct the original situation.
What Must Be Included in the CMR
Photographs and videos are important evidence, but they do not replace written documentation. In international trucking, one of the main documents is the CMR consignment note. If damage or a shortage is discovered upon receipt, the relevant remarks must be detailed in the shipping documents.
Instead of a general note such as “cargo damaged,” it is better to provide specific details. For example: “During unloading, damage to the packaging of three pallets was discovered; one pallet was deformed, and there were signs of water damage.”
If specific IBCs, drums, or other identifiable cargo units are damaged, it is advisable to specify their numbers or markings.
Such documentation is particularly important because the CMR Convention and the carrier’s liability are closely tied to the documents, the circumstances of cargo acceptance and delivery, and other factual circumstances of the specific shipment.
When to Involve the Chamber of Commerce and Industry or a Surveyor
If the damage is minor and the circumstances are clear to all parties, photographs, documents, and an acceptance report may sometimes be sufficient.
The situation is quite different when it involves expensive equipment, a significant portion of a shipment, industrial or chemical raw materials, or when there is a likelihood of a dispute among the parties involved in the shipment. In such cases, it is advisable to involve an independent third party.
Depending on the country and circumstances, this may be a representative of the Chamber of Commerce and Industry, an independent surveyor, or a specialized expert organization.
An independent specialist inspects the vehicle, the arrangement of the goods, the packaging, pallets, IBCs, or other containers, and documents the actual nature of the damage. Based on the results, a report, surveyor’s report, or expert opinion is drawn up.
Such a document is important because the condition of the cargo is confirmed not only by the parties involved in the shipment—each of whom may have their own perspective—but also by an independent party. However, involving the Chamber of Commerce and Industry is not mandatory for every instance of damage. The need for an independent inspection depends on the nature of the incident, the extent of potential damage, the terms of the contract, and the insurance company’s requirements.
A Special Case: Damage to Chemical Raw Materials
The transportation of chemical raw materials requires special attention, as the condition of such products cannot always be determined visually.
For example, upon delivery, the recipient may discover that the raw materials have changed color or odor, or that they now have a different consistency, contain sediment, or have separated. Such signs must be documented during an independent inspection.
The report may note that a particular batch of product has an unusual hue, a specific odor, signs of separation, a leak in the container, or other objectively observable changes. However, an unusual color or odor alone does not prove that the product is actually unsuitable for further use.
The opposite situation is also possible: visually, the chemical raw material may look completely normal, yet its physical and chemical properties no longer meet the technical specifications.
Particular caution is required if the product is classified as ADR dangerous goods. In such cases, during inspection, handling of damaged containers, and subsequent sampling, the properties of the substance and the relevant safety requirements must be taken into account.
What to Do with Damaged Chemical Raw Materials
After independently documenting the condition of the product, samples are collected for laboratory analysis as needed. This is particularly relevant when transporting goods in tank trucks, drums, and other industrial containers, where the external condition of the container itself does not always allow for determining the quality of the product inside.
If the potential damage is significant, it is not enough to simply place a small amount of raw material into a container and send it to the laboratory. It is necessary to ensure that the origin of each sample can be precisely determined: from which batch it was taken, from which IBC or drum, and where and when the sampling took place. The specific procedure depends on the product’s properties, applicable standards, and the requirements of the manufacturer and the laboratory.
In a disputed situation, several control samples may be collected—for the shipper, the consignee, the transportation company, the freight forwarder, and an independent laboratory. The samples are identified, sealed, or tamper-evident. The product name, lot number, IBC number or other container number, date, and place of sampling are specified.
This approach allows for repeat or parallel testing if one of the parties disagrees with the initial results.
Why an Independent Laboratory Is Needed
The sampled samples are sent to an independent laboratory.
The specific parameters to be tested depend on the product in question. These may include density, viscosity, pH, moisture content, active ingredient content, impurities, or other physical and chemical characteristics. The results are compared with the technical specifications, Certificate of Analysis, or quality certificate.
It is precisely this laboratory testing that allows for an objective determination of whether the product’s properties have actually changed.
This is particularly important for products that are sensitive to temperature conditions during transport. Outwardly, the raw materials may appear normal, but prolonged exposure to excessively high or low temperatures can affect certain product characteristics. However, even a negative laboratory result does not automatically mean the carrier is at fault.
The laboratory primarily answers the question: Does the product meet the specified characteristics?
After that, it is necessary to determine another point: why did the change occur, and at what stage of the logistics chain?
Who Is Responsible for Damage to the Cargo
The mere fact that the cargo arrived damaged does not automatically mean that the carrier must compensate for its full value.
In international truck transport, the shipping documents, circumstances of the incident, terms of carriage, and applicable regulations are analyzed. The cause may be improper securing of the cargo, damage to the vehicle, a traffic accident, or a violation of the agreed-upon temperature conditions.
However, the cause may also lie with the other party: inadequate packaging, actions by the shipper or consignee, improper loading or unloading, characteristics of the goods themselves, or failure to comply with storage conditions.
Therefore, the carrier’s liability for damage to the cargo must be determined only after analyzing the entire sequence of events.
For example, if chemical raw materials require a specific temperature, it is necessary to determine what conditions were specified by the manufacturer, what was agreed upon when arranging the shipment, and what temperature conditions were actually maintained during transit.
If the packaging is damaged, it must be determined whether it was suitable for the nature of the cargo and the conditions of transport.
How the Amount of Damage Is Calculated
The value of the entire shipment and the actual damage are not always the same.
Suppose twenty pallets of products were transported, three of which were damaged. This does not necessarily mean that the value of the entire shipment has been lost. It is necessary to determine which products have actually become unsuitable for further use, which can be repackaged or restored, and which part of the shipment was completely undamaged.
To confirm the damage, the following documents are used: commercial invoice, packing list, documents confirming the value of the goods, inspection reports, photographs, expert opinions, and, if necessary, laboratory test results.
When transporting chemical raw materials, it is particularly important to determine whether the identified problem affects a single IBC, several containers, or the entire shipment. Only then can an objective assessment of the damage be made.
When the Insurance Company Is Involved
If the cargo is insured or the incident may be covered by the liability insurance of the parties involved in the transportation, the insurance company must be notified in a timely manner in accordance with the terms of the specific policy.
The insurer may request the CMR, commercial invoice, packing list, photographs, a report from the Chamber of Commerce and Industry (CCI) or a surveyor, a damage assessment, and—in the case of damage to chemical raw materials—laboratory test results.
Therefore, cargo insurance for international shipments cannot be considered separately from the proper documentation of the incident. Even having insurance coverage does not eliminate the need to confirm the circumstances of the incident and the extent of the actual damage. For this same reason, damaged goods should not be disposed of immediately.
The carrier, insurance company, or an independent expert may request an additional inspection. If the cargo has already been destroyed, it will be significantly more difficult to confirm its original condition.
When the Claims Process Begins
After the damage has been documented, an independent inspection conducted, and the necessary investigations completed, the next step is to determine the causes of the incident and calculate the actual damage. After that, the claims process begins.
A claim against the carrier for cargo damage must be based not merely on the customer’s statement that the goods arrived damaged, but on a body of evidence.
Supporting documents may include the CMR, commercial invoice, packing list, photographs and videos, an independent inspection report, documents from the Chamber of Commerce and Industry (CCI) or a surveyor, laboratory test results, and a calculation of the actual damage.
If the shipment is arranged through a freight forwarder, the forwarder often serves as the liaison between the customer, the actual carrier, the insurance company, and other parties involved in the process.
This is one of the reasons why, when organizing international freight transportation, it is important to evaluate not only the cost of delivery but also the logistics company’s ability to professionally handle non-standard situations.
What the Entire Process Looks Like
If we combine all the stages, the sequence of actions will look like this:
- Identify and document the damage to the cargo. Take photos and videos documenting the overall condition of the cargo, packaging, pallets, IBCs, containers, or truck bed.
- Notify the parties involved in the shipment—the shipper, consignee, carrier, freight forwarder, and, if necessary, the insurance company.
- Make a note of the damage in the CMR or other transport document.
- Involve an independent party if the damage is significant or the situation is disputed: the Chamber of Commerce and Industry, a surveyor, or an expert organization.
- Obtain an inspection report or surveyor’s report documenting the actual condition of the cargo.
- Take control samples if the cargo consists of chemical raw materials or other products whose quality cannot be determined by visual inspection alone.
- Send the samples to an independent laboratory and obtain the test results.
- Determine the cause of the damage and identify at which stage of transportation or storage the problem occurred.
- Calculate the actual amount of damage based on the documents, the value of the goods, and the results of expert assessments and laboratory tests.
- Determine the liability of the parties, taking into account the circumstances of the shipment and the evidence gathered.
- File a claim and initiate the insurance settlement process if the incident is covered by insurance.
The first few hours after the damage is discovered are particularly critical. If the truck has already been unloaded and driven away, the cargo has been moved, the damaged packaging has been discarded, and the products have been disposed of, it will be significantly more difficult to reconstruct the original scene of the incident and prove the circumstances of the damage.
The key is to take the right steps from the very beginning
Damage to the cargo does not automatically mean the situation will end in a dispute between the customer, the freight forwarder, and the carrier.
The key is to systematically establish the facts.
First, the condition of the cargo must be confirmed; then, the nature of the damage and its causes must be determined; after that, the actual extent of the damage must be calculated and liability established. This approach is particularly important when transporting industrial products and chemical raw materials, where a visual inspection alone is often insufficient.
An independent report, properly selected test samples, and laboratory analysis allow us to move from a subjective claim that “the cargo is damaged” to documented facts.
Therefore, professional logistics is not just about delivering cargo from point A to point B. It also involves understanding how to respond correctly if something goes wrong during transit.
Frequently Asked Questions
What should you do first if a shipment arrives damaged?
You must document its condition with photos and videos, note the damage in the shipping documents, and notify the carrier or freight forwarder as quickly as possible. Until the initial documentation is complete, it is advisable not to alter the condition of the damaged portion of the shipment.
Is it necessary to involve the Chamber of Commerce and Industry?
Not for every instance of damage. However, in cases of significant potential damage or a disputed situation, an independent inspection by the Chamber of Commerce and Industry, a surveyor, or another expert organization can be crucial for further resolution.
What should you do if a chemical raw material has changed color or odor?
These changes must be documented during the inspection. Afterward, if necessary, control samples are collected and laboratory testing is conducted to compare the product’s actual characteristics with the established specifications.
If the laboratory confirms a change in the raw material’s properties, is the carrier automatically at fault?
No. Laboratory testing confirms the condition of the product. The cause of the change in its characteristics must be determined separately, as well as the stage in the supply chain where it occurred.
Can damaged cargo be disposed of immediately?
If the cargo does not pose a threat and there are no requirements for its immediate disposal, it is best to wait until the necessary inspections are completed and coordinate further actions with the insurance company and other interested parties.
