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How to break through the loss and damage of goods during international freight transportation?
2024/10/23

With the frequent occurrence of international trade and the vigorous development of the international logistics industry, the loss and damage of goods in international transportation also occur frequently. The vast majority of goods lost and damaged are due to non factors such as negligence by relevant personnel, improper packaging of goods, force majeure, etc. However, some are also caused by criminal acts such as theft. So, as the shipper or consignee, how can we better safeguard our legitimate rights when encountering loss or damage to the goods?


Firstly, the choice of whether to insure the goods should be based on their value when shipping. If the value of the goods sent is very high or important, the author suggests insuring the price. Because in the absence of insurance, if the goods are damaged, the carrier generally has the right to refer to a limit of compensation clause, except for intentional acts by the carrier. The carrier's compensation limit for the loss or damage of goods shall be calculated based on the number of pieces of goods or other freight units, with 666.67 units of account per piece or other freight unit, or 2 units of account per kilogram based on the gross weight of the goods, whichever is higher. At the same time, the Montreal Convention on the Unification of Certain Rules for International Air Transport in 1999 stipulates that if destruction, loss, damage, or delay is caused during the transportation of goods, the carrier's liability is limited to 17 special drawing rights per kilogram, unless the shipper specifically declares its interest in delivering the package to the carrier at the destination and pays additional fees if necessary. The loss of the shipper and consignee caused by damage without insurance cannot be fully compensated. The law stipulates a unified compensation scale to maintain the rapid and convenient development of commercial transactions, protect the development of international logistics business, reduce the carrier's responsibility and weaken the burden of proof of the parties, balance the economic interests of all parties involved in the transaction, reduce moral risks, and minimize litigation as much as possible.


Secondly, promptly raise objections to the carrier when discovering loss or damage to the goods. In the international transportation of goods, if there is loss or damage to the goods, the shipper or consignee should raise objections to the carrier within the specified time, otherwise it is deemed that the goods have been successfully delivered. The purpose of such legal provisions is to facilitate the parties to retain relevant evidence as soon as possible and resolve disputes, which can greatly avoid the loss of evidence after a long period of time when both parties have disputes. The 1999 Montreal Convention clearly stipulates that in the event of loss, the person entitled to claim checked baggage or goods must immediately raise an objection to the carrier upon discovering the loss. In addition, if there is a loss of checked baggage, it shall be raised no later than seven days from the date of receipt of the checked baggage, and if there is a loss of goods, it shall be raised no later than fourteen days from the date of receipt of the goods. If there is a delay, objections must be raised no later than 21 days from the date of delivery of the luggage or goods to the recipient for disposal. China's Maritime Law also clearly stipulates that if the loss or damage to the goods is not obvious, it shall be deemed successful delivery if the consignee fails to submit written notice within seven consecutive days from the day after the delivery of the goods or within fifteen consecutive days from the day after the delivery of the container goods.


Once again, pay attention to retaining evidence of loss or damage to the goods. Successfully proving the loss or damage of goods is a prerequisite for successfully obtaining compensation. So how can we prove that the goods have been lost or damaged? Relevant carrier contracts, payment certificates, luggage labels, logistics records, photos of the goods before shipment, and photos of the goods after arrival are all good evidence. For example, in a case of lost goods handled by the author, the luggage label issued by the carrier clearly stated a weight of 200 kilograms, but when it arrived at the destination, the luggage label stated 73 kilograms, with the number of pieces remaining unchanged. This fully demonstrates that the goods were lost during transportation. In terms of evidence retention, if the goods are damaged, methods such as shooting on-site videos can be considered to retain the evidence. Finally, selecting different solutions based on the reasons for the loss of goods and inviting lawyers to intervene can effectively protect the rights of the parties involved.


If there is a clear suspicion of intentional crime or suspicion of loss of goods, the parties involved can choose to report to the police, as this may be criminal responsibility, theft, or embezzlement. In international logistics, due to the large number of people who come into contact with the goods, theft often occurs if the relevant personnel know that the value of the goods in them is high and there is no quotation. If there is no obvious intentional crime, the parties can choose to negotiate with the actual carrier or contracting carrier to resolve it. Generally speaking, the actual carrier is a relatively large international company that tends to negotiate compensation. The earlier the lawyer intervenes, the better. Among them, the lawyer can guide the parties to retain relevant evidence, negotiate compensation matters with the carrier on behalf of the parties, and calculate the amount of compensation that can be obtained according to law.