Mitigating Cargo Loss in Shipping Risks: 3 Best Strategies

Cargo loss in shipping is a concern because it not only leads to financial loss, but can also have a serious impact on the supply chain and business.

Reasons why cargo loss in shipping

1. Incorrectly filled in receiving address or zip code

In most countries and regions, parcels are usually delivered directly to the recipient’s address without prior contact with the recipient. If the zip code address is wrong, it is likely to lead to the return or loss of the parcel.
Another situation is that the recipient cannot receive the mail because of the error of the local post office.

2. Problems with customs clearance

The port department of the importing country has the right to inspect, detain, tax, fine or even destroy some special international parcels.
For some sensitive goods or items that are not considered to meet export requirements, such as name brands, branded digital products, etc., countries with stricter customs policies may require the return or destruction of these items.

U.S. Customs


cargo loss in shipping

cargo loss in shipping


3. Stolen goods

Occasionally, this happens: when the courier company delivers a parcel, it coincides with the recipient not being at home, but the person who delivers the parcel is not responsible for putting the parcel in a safe place, but casually puts it outside the house, which leads to pedestrians passing by casually taking away the parcel. This is especially likely to happen in areas with poor law and order. 

It is necessary for you to purchase cargo insurance during transportation to prevent losses caused by the cargo loss in shipping. Regarding freight insurance, you can refer to this article:

Difference Between Freight Insurance & Cargo Insurance 

Cargo loss in shipping responsibility and claims process

Customers are worried about the loss of goods, but do not know who to find the responsibility. In fact, cargo loss in shipping is also divided into several situations, here we come to give you an inventory of how to deal with:

01: Loss of cargo headway

▶Responsible party: the carrier
▶Response: Provide the appropriate materials to find the freight forwarder / carrier claims

Specific operation:

Goods lost in transit in two cases, one is found outlets more than 15 days is still not sent to the warehouse, you need to contact the freight forwarder or carrier directly to inquire about the goods, while the warehouse will also keep an eye on the goods to the warehouse, once received will be immediately scanned on the shelves.

If you find that the goods are short in quantity when the warehouse signs for them and counts them on the shelves, you can find the freight forwarder or carrier to make a claim according to the situation provided by the warehouse.

Provide information: tracking number / waybill number, box size & photos of the items, mailing receipt / confirmation email / proof of insurance, proof of the value of the items (invoice receipt …), etc., the more detailed the description of the commodity information, the faster the audit.

If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about the claims for  cargo loss in shipping:


02: Goods lost in the warehouse

▶Responsible party: Warehouse
▶Response: Compensation in accordance with the warehouse process approval

Specific operation

Due to the huge volume of goods stored in the warehouse, it takes 30 days to find the goods, and if the goods are not found within 30 days, the warehouse compensates in accordance with the agreement, and you only need to fill in the Refund and Claims Application Form and the documents proving the value of the goods.

03: Loss of Cargo Tailing

▶Responsible Party: Carrier
▶Response: Warehouse assistance in claiming compensation

Specific operation

If the shipment is delivered through the freight forwarder’s cooperative channel, then their warehouse can assist you in claiming compensation from the logistics carrier, but the result of the claim is subject to the approval result of FedEx, UPS and USPS.


What is special cargo?


Best practices for reducing cargo loss in shipping

1. use tracking technology and the Internet of Things (LOT):

A common practice is the use of tracking devices, such as GPS or RFID tags, in cargo packaging. Such devices allow for real-time tracking of the location and transportation of cargo to ensure its safe arrival. 

2. Enhance packaging and labeling

Proper packaging and labeling are key to preventing cargo loss in shipping . Goods can be encapsulated using sturdy packaging materials, and obvious markings, such as product name and destination, can be used on the packaging. This will reduce the risk of cargo being mishandled or misloaded during transportation.

3. Establish strict security control measures:

Logistics companies need to establish sound security control measures, including surveillance cameras, intrusion detection sensors and visitor control. These measures can effectively reduce the risk of internal and external theft and arson and improve cargo security.

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