Marine cargo claim documents: the checklist

This checklist is written for the person who builds and checks the file: the average adjuster, the P&I correspondent, the claims-settling agent and the insurer's claims handler. It sorts the documents by stage of the voyage. For each one it says which fact it records. That matters, because a claim is rarely decided by a single paper. It is decided by how the papers fit together.

The cargo claim checklist at a glance

The table lists the documents most cargo claims under a bill of lading need. Not every claim needs every row. A container claim may have no draft survey. A bulk shortage claim may have no packing list. Use the table to see what is in the file and what is still to come.

Documents from loading

Bill of Lading

The bill of lading is a receipt for the goods, evidence of the contract of carriage and, in its negotiable form, a document of title. Under the Hague-Visby Rules (Art. III r.3) the carrier must, on demand, show the leading marks, the number of packages or the quantity or weight, and the apparent order and condition of the goods. Under Art. III r.4 the bill is prima facie evidence of receipt as described. Once it has been transferred to a third party acting in good faith, proof to the contrary is not admissible.

For the file, the first question is whether the bill is clean or claused. A clean bill records the goods in apparent good order and condition. A claused bill carries remarks, such as wet or torn bags. A remark is the carrier's evidence that a defect existed at loading. Cargo insurers often ask for the original bill, or the full set, in a total loss claim; for a partial loss a copy may be accepted. Check what the policy and the insurer require.

Mate's Receipt

The chief officer signs the mate's receipt when the cargo is on board. Apparent defects are recorded on it, and the bill of lading is usually issued in line with it. When the bill is clean but the mate's receipt carries remarks, the file needs both. The difference is a point the parties will discuss.

Commercial Invoice and Packing List

The commercial invoice sets the value basis of the claim. The packing list shows how the goods were packed and marked. Together they let you check the quantity and value claimed against the quantity shipped. Compare the invoice, the packing list and the bill of lading early. Different quantities across the three are a frequent gap in a marine cargo claim file.

Documents from the voyage

Statement of Facts

The statement of facts is prepared by the port agent and signed by the master and the agent, sometimes also by shippers or receivers. It records the times of port events: arrival, notice of readiness, berthing, start and end of loading or discharge, rain stoppages and other interruptions. It is drawn up mainly for laytime, but its times are often the first evidence of when hatches were opened or closed.

Deck Log

The deck log is the ship's own record, kept by the officers of the watch. It covers navigation, weather and sea state, and in port the cargo operations, hatch openings and closings, and ventilation. In a wet damage claim, the weather entries and the hatch times are often the most important lines in the file. Ask for copies of the relevant pages early, together with any separate ventilation or hold records.

Documents from discharge

Draft Survey

For bulk cargo, the draft survey establishes the weight loaded or discharged from the ship's displacement. A survey at both ends is the usual basis of a shortage claim. Small differences between the two surveys, or between draft survey and shore scale figures, are often argued. Without a discharge draft survey, a shortage claim rests on shore figures alone.

Outturn Report

The outturn report records what was actually discharged, in quantity and condition, against the bill of lading or manifest. It is usually issued by the terminal, the stevedores or the agent. For a container or break bulk shipment it is the first record of a shortage or of visibly damaged packages.

Cargo survey report

The survey report describes the nature and extent of the loss and the surveyor's view of its probable cause. It is strongest when the carrier was invited to attend and a joint survey took place. Under the Hague-Visby Rules, written notice of loss is not needed if the state of the goods was the subject of a joint survey or inspection at receipt. A wet damage report should separate fresh water from sea water damage, record where in the hold the damage was found and include photographs.

When documents disagree

Two documents often record the same event, and they do not always agree. The example below is invented. It is the sample claim we use on this site and contains no real data.

Thirty minutes may not matter. If rain started at 14:20, it may. The two documents were written by different people for different purposes. The statement of facts serves laytime. The deck log is the ship's record. Neither is automatically right. The professional handling the file weighs them against the weather records, the survey report and any photographs. What the file needs is both entries side by side, each with its source, so that nobody has to search for them again. For a closer look at this pair, see our guide on statement of facts and deck log.

Notice of claim and the time bar

Under the Hague-Visby Rules (Art. III r.6), written notice of loss or damage should be given to the carrier or its agent at the port of discharge before or at the time the goods are removed into the receiver's custody. If the loss or damage is not apparent, notice should follow within three days. Without notice, removal of the goods is prima facie evidence that they were delivered as described in the bill of lading. The claim is not lost, but the burden of proof gets heavier.

The same rule discharges the carrier and the ship unless suit is brought within one year of delivery, or of the date when the goods should have been delivered. The parties may extend the period by agreement after the cause of action has arisen. Other regimes, such as the Hamburg Rules, and the terms of the bill of lading or charter party can set different rules. We cover the details in our guide to cargo claim time bars.

Not legal advice. This is general information. Check the bill of lading, the governing law and any agreed extension, and confirm the time bar for each claim with the people responsible for it. Track the time bars you have confirmed.

Preserving recovery and subrogation

Once a cargo insurer pays, it steps into the assured's rights against the carrier. Under English law this is subrogation (Marine Insurance Act 1906, s.79). The Institute Cargo Clauses (1/1/09, clause 16) make it the assured's duty to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised. In practice, cargo recovery depends on a few steps taken at discharge:

• Note remarks on the delivery receipt or tally before signing it clean.
• Give written notice to every carrier in the chain, including on-carriers and the terminal.
• Invite the carrier to a joint survey and keep the invitation.
• Keep the damaged goods and packaging until the carrier has had a chance to inspect them.
• File every reply from the carrier and every time extension, with its date.
• Obtain a signed subrogation receipt or letter of subrogation when the insurer pays.

Common gaps in a cargo claim file

1. A shortage claim on bulk cargo with no draft survey at discharge.
2. A clean bill of lading, but remarks on the mate's receipt that nobody has asked for.
3. No notice to the on-carrier or terminal where the cargo was transhipped.
4. Quantities on the invoice, packing list and bill of lading that do not match.
5. A survey held without inviting the carrier, so the report is one-sided.
6. Hatch times in the statement of facts and the deck log that were never compared.

Hull and machinery claims need a different set of papers. See our checklist of hull and machinery claim documents.

FAQ

Which documents does a shortage claim need?

At least the bill of lading, the mate's receipt, the outturn report and, for bulk cargo, draft surveys at loading and discharge. Add the commercial invoice for value and the notice of claim.

How does an outturn report differ from a survey report?

The outturn report records what was discharged and in what condition. The survey report examines the loss, its extent and its probable cause.

Is a copy of the bill of lading enough?

Often for a partial loss. Cargo insurers frequently ask for the original or the full set for a total loss. Check the policy.

Who sends the notice of claim?

Usually the receiver, or its agent or cargo insurer, in writing to the carrier or its agent at the port of discharge.

How long is the time bar for sea cargo claims?

Under the Hague-Visby Rules, one year from delivery, unless extended by agreement. Other regimes and contracts differ. Confirm it for each claim.

Dossima files these documents into one claim file and shows what is still missing, with the source of each entry. The decision stays with you.

Sources

Public sources this guide relies on. Check the current text before you rely on a rule.

• Carriage of Goods by Sea Act 1971, Schedule: Hague-Visby Rules (legislation.gov.uk)
• Marine Insurance Act 1906, s.79 Right of subrogation (legislation.gov.uk)
• Institute Cargo Clauses (A) 1/1/09
• West P&I: Bills of Lading, P&I guide
• The Swedish Club: Clausing bills of lading, practical guide
• American Club: Dry bulk cargo shortage guidance

More guides

• Statement of facts vs deck log: when the records disagree
• Time bars in marine cargo claims: notice, suit and extensions
• Hull and machinery claim documents: the checklist