It is a legal demand by a shipper or consignee to a
carrier for financial reimbursement for a loss or
damage of a shipment
Claims For Shortlanding
• If some cargo are found missing while taking the delivery, the
freight forwarder will notify the shipping company and lodge
a formal claim.
• The shipping company will take up with port authorities for
tracing cargo, if not traceable it will send tracers to ports
where the ship has visited.
• Port authorities will issue tally sheets and remark’s list to the
• If port’s tally is short and the missing packaging are not
traced, the port and company will confirm it.
• The port authorities will out-turn the missing goods as
“shortlanded” and will issue a shortlanding certificate.
Claims For Loss or Damage
• If a part of consignment is found defective while landing, the
consignee has to apply to the shipping company in a writing
requesting to hold a ship’s survey .
• Survey has to be sought within three days.
• A joint survey can be arranged.
• Consignee can thereafter clear the goods and submit to the
shipping company cargo claim for loss and damage.
• Refund of custom duties has to be claimed within six months.
• The appropriate measure for damage is the invoice price plus
freight, duty and profit on resale.
Who has the Right to Claim ?
• The endorsee of the Bill of Lading.
• The innocent holder of value.
Limitation of Liability
• According to Indian Carriage of Goods by Sea Act, unless
the value of goods is stated in the bills of lading, liability
of carrier is limited to 100 pounds sterling.
• After 1979, the amount was calculated in SDR.
• 2 SDR per kilogram of gross weight of the good.
• The limits of liability can be increased if :
If shipper makes a declaration of the value and nature of
goods to the carrier before shipment.
The declaration is stated in the bill of lading.
• Duty will have to be paid on dutiable goods at
rates specified under the customs act.
• Consignee can claim refund on lost or missing
• The customs will levy a penalty which the
shipowner will have to pay.
Prevention of Loss or Damage
• Strong packaging.
• Use quality ink or paint.
• Strict supervision.
• Proper Stowage.
• Proper Tallying.
• Proper stacking.
• Restricted circulation of Documents.
• Efficient Security system.