International freight forwarding is a thriving industry. There are both large and small market players offering customized freight forwarding solutions to export-importers worldwide. They play a very important role in keeping your business running. But what if your freight forwarder loses your cargo on transit?
Mishaps can happen despite the best efforts made from both ends. The freight forwarder can lose track of the cargo between POL and POD due to several factors. What are your options if something like this happens to your consignment?
In most cases, if the cargo is lost in transit the carrier is responsible for compensating you for the losses. But a lot of legal complications can arise as well if the carrier denies the responsibility or the consignment is found later on. You must learn about your options to secure your interest if such a thing happens.
Bill of lading: The Bill of Lading is an important document that can serve a crucial purpose in determining the fate of your lost cargo claim. Each shipping line has their own set of terms and conditions which are mentioned in the Bill of Lading. The bill will also describe the shipper’s responsibility in the event of lost consignment and therefore, it will also determine the amount of compensation that you can expect from your freight forwarder.
Marine cargo insurance: Most cargo liners cover themselves for losses like this with marine cargo insurance. Your compensation will be governed by the terms and conditions of the policy. Normally, there is an upper limit of compensation set for each type of loss and that is the maximum amount you may expect to receive. Depending upon the laws, sometime you can claim under both your cargo insurance and that of your carrier’s.
Cargo insurance: When you are sending your cargo from one destination to another you must cover yourself with cargo insurance. Depending upon the type of policy you choose you can expect full recovery for your lost cargo. Cargo insurance…