Effective cargo management across multiple ports involves complex operational and legal responsibilities. Forwarders must accurately document cargo movements, identify the point of damage if any occurs, and lodge claims under the appropriate liability regime.
Documenting Multi-Port Movements
When cargo passes through multiple ports, forwarders must keep records of various types of transport documents that segment a shipment’s journey. These include transshipment records, stevedore logs that capture interactions and movements at each port, and cargo condition reports that detail the state of the cargo at each transfer point. These records are not only kept for the forwarder’s reference but must be readily available to provide to customs authorities, insurance companies, and clients upon request.
Identifying Point of Damage
In the event of cargo damage, European logistics operators must trace responsibility by reconstructing the movement timeline and identifying where the damage or loss likely occurred. This process starts with examining the handover points where the cargo changed hands, including ports and terminals. At these points, forwarders focus on the specifics of cargo handling and storage conditions. They may initiate inquiries into the procedures followed during the cargo’s loading, assess whether appropriate equipment was used, and request access to CCTV footage to visually confirm the sequence of events reported by ground staff. Additionally, forwarders might assess the staffing levels during the cargo handling to see if there was adequate supervision and enough experienced personnel present.
In situations where the timeline indicates the cargo was damaged during a specific leg of the journey, forwarders must work to ascertain the operational conditions at that time. This might include reviewing weather reports to check if adverse conditions could have contributed to the damage or assessing if the cargo was scheduled during a particularly busy period at a port which might have led to hurried handling practices.
Lodging Claims
Forwarders are required to lodge claims against the responsible party under the appropriate liability regime, which, in the case of sea freight in Europe, typically involves the Hague-Visby Rules or the Rotterdam Rules. Under the Hague-Visby Rules, forwarders notify the carrier in writing of any visible damage or loss immediately upon cargo discharge or within three days if the damage is not apparent at the time of discharge. This notification should include all pertinent details of the claim, along with any supporting documentation. If the claim is acknowledged by the carrier, negotiations for compensation based on the liability limitations set by the rules (which are often calculated per package or per kilogram) will follow. If a resolution is not reached, legal action may be required and claims must be brought within one year of the delivery date or the date the goods should have been delivered.
In contrast, under the Rotterdam Rules which cover more than just the sea leg and apply to the entire door-to-door shipment, the claim process is broader. Forwarders must still document and notify the carrier of any losses or damage within seven days for non-apparent damage. However, these rules allow for a longer period for legal claims to be made—up to two years from the day the goods were delivered or should have been delivered.