Claims to Supplier and Carrier: Building the Evidence Pack

A receiving report that finds a shortage or damage is only the first half of the job. The second half is getting a response from the people who can put it right: the supplier, the carrier, sometimes an insurer. Claims succeed or fail less on the size of the loss than on how clearly and how quickly the facts were presented. This article is a general guide to organising them, not legal advice. The rules that apply to your shipment depend on the contract, the delivery terms and the law, so take specific questions to your lawyer, your forwarder or your insurer.

Who a claim goes to

Different problems usually point to different parties.

• The supplier, for wrong goods, wrong quantities, defects, or packing that was inadequate when the goods left them, as set out in your contract or purchase order.
• The carrier or forwarder, for damage or loss while the goods were in their custody, under the terms of the transport document.
• The insurer, if you hold cover, under the policy.
• Your customs broker, for anything that happened after an inspection by customs.

More than one party may be involved, and the delivery terms in your contract often decide where the risk passed. That is why the contract should be read before the shipment and not after it.

Do not decide in advance who is to blame. List the facts, send them to every party that may be concerned, and let each answer for its own part.

The evidence pack

Gather the following into one folder, which we can call the evidence pack:

1. The contract or purchase order, and the invoice.
2. The packing list, and the bill of lading or waybill.
3. The receiving report with the counts and the quantity table.
4. The photograph album, with numbers that tie each picture to a line.
5. Any remarks written at the time of delivery, with the reply of the driver or site manager.
6. Container and seal details.
7. The correspondence so far.
8. The goods themselves, or samples of them, kept as they were.

These items need not all be complete on the day of receiving. What matters is to know where each one is, to start with what you have and not to delay the first message while waiting for what is missing.

The first message

Keep it short and factual. Say which shipment it is, what was found (with numbers), what is attached, what you are asking for (a replacement, a credit, an inspection) and the date by which you expect a reply. Send one message with the whole pack, with the attachments listed by number, instead of a stream of partial messages. Write to the supplier and to the carrier separately, each with the part of the evidence that concerns them. Say also where the goods are and who can show them, and when.

A conditional example

The invoice is for 1,200 units at USD 15, a total of USD 18,000. At receiving, 36 units are damaged: 36 / 1,200 = 3%. A request for credit on the damaged units would be 36 × 15 = USD 540, plus whatever your contract provides for. A short message with the report and photographs 31 to 44 is easier to answer than an angry one about "a lot of damage", and a credit of USD 540 is easier to agree than an open-ended dispute. Keep the arithmetic in the message itself: units, price and total. A supplier can accept a calculation more easily than a feeling.

Mistakes that weaken a claim

• Waiting until the deadline for notice has passed. Deadlines come from the contract, the carrier's conditions and the policy, and they can be short.
• Throwing away damaged goods or their packaging before anyone has seen them.
• Settling by phone and having nothing in writing.
• Mixing complaints about different matters (quantity, quality, delivery time) in one message.
• Changing figures after the first message has gone out.
• Leaving damaged goods in an open yard, where further damage can happen and be blamed on you.

In short

A claim is built from the evidence collected on the day the goods arrive. CargoChek prepares the facts: the report, the quantity table, the photograph album and the remarks record, in a form you can send to your supplier or the freight company. What to claim, and from whom, is your decision, taken on advice.