Shipping damage is a massive threat to any products that travel on the supply chain.
As per a Statista survey, eighty per cent of consumers say they’d return a product they received that was damaged in shipping.
The more your products get damaged in shipping, the more money your company loses and the effects of that loss can spread throughout your organization, causing both direct and indirect expenses and affecting sales.
Here are 4 tips to reduce cargo damage and save money on shipping costs.
There are several reasons that cargo inside a container could damaged. It could be due to improper packing of cargo inside a container, incorrect container used for the cargo carried, but one of the main reasons for cargo damage inside a container is the condition of the container itself.
Wet damage due water ingress (rain, seawater etc) into the container ;
Wet damage due to condensation inside the container when an incorrect type of container is used like using a normal container instead of a ventilated container ;
Contamination due to adjacency risk or odor transfer ;
are some of the common types of damages reported on cargoes that are packed in containers.
As a general rule, shipping lines reject these claims confirming that the gate out documents of the containers were clean at the time of release to the shipper. Insurance companies use Unseaworthiness and Unfitness Exclusion Clause stated in ICC (A) not to cover similar claims either, unless the insured can prove that he was not aware of the condition of the container at the time of loading.
Obviously, this situation causes a lot of frustration, feelings of injustice, and could result in absorbed losses among shippers globally.
So should the shipper simply accept this rejection of claims and move on?
Cargo Damage is a very regular occurrence in shipping.. This guide explains the types of cargo damage and how to prevent it and also how to handle a cargo damage situation..
If your niche is in
• Handling containerised cargo as an exporter, importer, carrier or agent
• Packing of containerised cargo
• Transportation of containerised cargo
• Loss control
• Any kind of handling of containerised cargo