Navigating Shipping Cargo Claims for Smooth Operations

International shipping is a long and complicated process, it is common for cargo owners to file cargo claims in order to protect their interests.

Cargo insurance is the owner of the goods all benefit and no harm in your current cooperation with the China shipping  agent, be sure to ask are able to buy cargo transportation insurance for you.

When purchasing transportation insurance, you must understand the scope of cargo claims.


cargo claim

cargo claim


General cargo claim coverage

Physical Loss or Damage

Insurance companies are responsible for compensating for physical loss or damage to goods during transportation due to accidents, fires, ships hitting the rocks, collisions, sinking and other reasons. This includes total loss, partial loss, and repair costs of the goods.

Theft or Loss

The insurer is liable to pay for goods that are stolen or unrecoverable during transportation. This includes loss or theft of goods from ships, docks, warehouses, etc.

Pollution or contamination

The insurer is liable for pollution or contamination of the goods during transportation due to leakage, seepage, chemical reaction, etc. This includes cases where the goods come into contact with other substances. This includes damage or loss of quality due to contact with other substances.

Transportation delays

Certain insurance contracts may include compensation for losses due to transportation delays, such as commercial losses due to ship delays or stranded cargo.

War and Strike Risks

In certain insurance contracts, insurers may be liable to indemnify against loss of goods due to risks such as war, terrorism, strikes or political unrest.

Different insurers and insurance programs may offer different scope of liability and additional options, so the selection of a suitable insurance program should be fully compared and evaluated.


cargo claim

cargo claim


If you want to learn more about shipping claims, here is an article on Shipping Insurance Cost Calculation Formula:

Shipping Insurance Cost Calculation Formula 

International shipping cargo claim process

Notify the insurance company immediately after the discovery of cargo damage

Contact the insurance company as soon as possible after the damage to the cargo occurs and provide them with a detailed notice of claim. According to the provisions in the insurance contract, there may be a specified period of notification, be sure to notify the insurance company within the specified time.

Provide claim documents

Prepare and provide the required claim documents and supporting materials as requested by the insurance company. This may include claim application forms, transportation documents (e.g., bills of lading, packing lists), proof of value of the goods, photographs of the damage, cargo inspection reports, copies of insurance policies, etc. Ensure that the documents provided are complete, accurate and submitted as required.

Investigation and Assessment

The insurance company may conduct investigation and assessment of the claim to determine the extent of the loss and the amount of compensation. They may ask you to provide further information or assist them in their investigation.

Negotiate the amount of compensation

Once the insurance company has completed their investigation and assessment, they will make a recommendation on the amount of compensation to be paid. You can then negotiate with the insurance company and reach an agreement on the amount of compensation. If no agreement can be reached, further negotiation or arbitration may be required.

Payment of Claims

Once both parties have reached an agreement on the amount of compensation, the insurance company will pay the compensation to you or directly to the relevant beneficiaries.

If you need,there is the Cargo Claims platform.

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 shipping cargo claim process:


Common Reasons for Rejection of Cargo Claims

  • Whether it is basic or comprehensive insurance, the insurer will not be responsible for losses caused by the following reasons
  • War or military action.
  • Defects or natural wear and tear of the insured goods themselves.
  • Intentional acts or omissions of the insured.
  • Nuclear incident or nuclear explosion.
  • Other losses which are not covered by the insurance liability, etc.


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Cargo dispute settlement methods are as follows

  • Negotiation. The parties themselves negotiate to resolve contract disputes.
  • Mediation. Both parties voluntarily under the auspices of a third party by a third party to persuade, reach a settlement agreement.
  • Arbitration. According to the parties in the contract arbitration clause or voluntarily reached an arbitration agreement, in accordance with the provisions of the law on the contract dispute matters for the mediator to adjudicate.
  • Litigation. Litigation is the final form of dispute resolution
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