Handling Cargo Damage & Demurrage Claims: A Step-by-Step Guide

Cargo and demurrage disputes are among the most common commercial conflicts in shipping. Whether you are a shipowner, charterer, freight forwarder, or cargo interest, knowing how to handle a cargo claim or a demurrage claim correctly can be the difference between full recovery and a costly write-off. This guide walks through the practical steps that protect your position from the moment a problem appears.

Understanding Cargo Damage Claims

A cargo damage claim arises when goods are lost, short-delivered, contaminated, or physically damaged during the voyage. Liability usually turns on the contract of carriage and the applicable regime — most commonly the Hague-Visby Rules under a bill of lading. The carrier is generally responsible for loss or damage occurring between loading and discharge unless an exception (such as inherent vice, insufficient packing, or a peril of the sea) applies.

The strength of any claim depends on evidence gathered early. Key steps include:

—Note clausing on the mate's receipt or bill of lading to record the apparent condition of the goods.

—Hold a joint survey at discharge and photograph the damage before the cargo is moved.

—Secure the stowage plan, temperature and reefer logs, and any sea protest filed by the master.

—Serve a written notice of loss within the period required by the bill of lading — often three days for non-apparent damage.

Demurrage, Laytime and Detention

A demurrage claim compensates the owner when a charterer keeps the vessel at berth beyond the agreed free time. To calculate it you must first measure laytime — the time allowed for loading and discharging under the charterparty. Laytime begins when a valid Notice of Readiness (NOR) is tendered and the vessel is an "arrived ship," ready in all respects.