As cargo claim attorneys in New York City, we can assist you if your business has suffered financial losses due to damaged or missing cargo. We can navigate the complex landscape of maritime law and help you recover the compensation you deserve from carriers responsible for your lost or damaged goods. With extensive knowledge of international treaties, federal regulations, and industry practices, we can build a compelling case on your behalf, negotiating with carriers and insurers to reach a fair settlement or, if necessary, aggressively litigating your claim in court.
Various types of cargo are transported by sea, including containerized cargo, which consists of standard shipping containers (20-foot and 40-foot) and refrigerated containers for perishable goods. Break-bulk cargo refers to goods that are not shipped in containers, such as steel, lumber, and machinery. Bulk cargo includes loose, unpackaged goods like grains, coal, and oil. Roll-on/Roll-off (RoRo) cargo consists of wheeled cargo, such as automobiles, trucks, and trailers. Project cargo involves large, oversized, or uniquely shaped items that require special handling.
Cargo loss and damage lawsuits under maritime law can be complex due to the involvement of multiple parties, including shippers, carriers, stevedores, and insurers. Determining liability can be challenging due to the numerous handoffs during the shipping process. International treaties and domestic laws govern maritime shipping, creating a complex legal framework. Cargo claims are also time-sensitive, as they are subject to statutes of limitations. Gathering evidence and documenting losses can be difficult, especially when damage occurs during transit.
Several international treaties, conventions, and domestic laws govern the legal aspects of cargo claims in maritime shipping. These include:
The Carriage of Goods by Sea Act (COGSA), enacted in 1936, governs the rights and responsibilities of carriers and shippers in maritime trade. It applies to all contracts for the carriage of goods by sea to or from ports in the United States, establishing a statutory framework for the allocation of liability in case of cargo loss or damage. Under COGSA, carriers are liable for loss or damage to cargo caused by their negligence or failure to exercise due diligence, but they can limit their liability to $500 per package or customary freight unit, unless the shipper declares a higher value.
The Harter Act, enacted in 1893, regulates the liability of carriers engaged in maritime trade and applies to the carriage of goods by sea to or from ports in the United States. It prohibits carriers from inserting clauses in bills of lading that would relieve them of liability for negligence in the care and custody of cargo to exercise due diligence in making the vessel seaworthy and properly manned, equipped, and supplied.
The Hague-Visby Rules are a set of international rules governing the carriage of goods by sea, adopted in 1924 and amended in 1968 and 1979. They apply to the international carriage of goods by sea under bills of lading or similar documents of title and establish a uniform set of rules for the allocation of liability between carriers and shippers. Under the Hague-Visby Rules, carriers are liable for loss or damage to cargo caused by their negligence or failure to exercise due diligence, but they can limit their liability based on the weight or value of the cargo, subject to certain exceptions.
The Hamburg Rules, adopted in 1978, also provide another set of international rules governing the carriage of goods by sea. These rules were developed by the United Nations Commission on International Trade Law (UNCITRAL) to address perceived inequities in the Hague-Visby Rules and to strike a better balance between the interests of carriers and shippers. The Hamburg Rules apply to contracts for the carriage of goods by sea between ports in different states, if either the port of loading, the port of discharge, or one of the optional ports of discharge is located in a contracting state. Under these rules, carriers are liable for loss, damage, or delay in delivery of goods occurring while the goods are in their charge, unless they can prove that they took all reasonable measures to avoid the occurrence and its consequences. The liability of carriers is based on the principle of presumed fault or neglect, and the burden of proof is on the carrier to show that they were not at fault.
Domestic maritime laws in the United States include the Shipping Act of 1984, which regulates the practices of ocean carriers and marine terminal operators, prohibits carriers from engaging in unfair or discriminatory practices, and requires carriers to file tariffs with the Federal Maritime Commission and adhere to the published rates and terms. The Ocean Shipping Reform Act of 1998 amended the Shipping Act of 1984 to promote competition and fairness in the maritime industry, allow shippers to negotiate confidential service contracts with carriers, and reduce regulatory burdens on the shipping industry while maintaining essential protections for shippers. The Admiralty Extension Act extended admiralty jurisdiction to include damage or injury caused by a vessel on navigable waters, even if the damage or injury occurs on land, and allows for the application of maritime law to cargo claims arising from accidents that occur during the loading, unloading, or storage of goods at a marine terminal. It specifically covers injuries sustained during the loading, unloading, or storage of cargo, and property damage to structures like bridges or piers caused by a vessel.
Assessing cargo claims and scrutinizing insurance policy provisions necessitates a thorough examination of the circumstances surrounding the loss or damage, a meticulous review of the relevant insurance policies, including their specific terms, conditions, and exclusions, and a determination of the extent of coverage for the loss or damage. This process also involves evaluating the legitimacy and fairness of the claimed damages, counseling insurers on their responsibilities and potential defenses under the policy, collaborating with experts, such as surveyors and adjusters, to investigate and document the loss or damage, analyzing the potential ramifications of applicable laws, treaties, and regulations on coverage issues, and furnishing insurers with coverage opinions and recommendations based on the comprehensive evaluation of the claim and policy terms. Notably, carriers are legally obligated to acknowledge claims within 30 days of receipt and to pay, decline, or propose a settlement in writing within 120 days. All involved parties must take steps to mitigate product loss or damage and salvage what they can to prevent a total loss, as failing to attempt to save the freight can provide a carrier with justification for denying the claim.
Providing insurance companies with coverage positions entails:
Pursuing subrogation claims for insurance carriers involves:
Defending marine terminal operators and stevedores against cargo loss and damage claims requires:
Representing freight ocean carriers and shippers in loss and damage claims involves:
The Law Offices of Albert Goodwin represents clients with cargo loss and damage claims, including damage to cargo during loading, unloading, or storage; loss of cargo due to theft, pilferage, or misdelivery; damage to cargo caused by improper stowage, handling, or securing; damage to cargo resulting from vessel accidents, collisions, or groundings; loss or damage to cargo due to fire, explosion, or other casualties; damage to perishable goods due to improper temperature control or ventilation; loss or damage to cargo caused by natural disasters, such as hurricanes or floods; damage to cargo resulting from improper packaging or labeling by shippers; loss or damage to cargo due to customs delays, inspections, or seizures; and damage to cargo caused by inherent vice or defect in the goods themselves.
For shippers, we offer guidance on proper packaging, labeling, and documentation of cargo, assist in the preparation and filing of cargo claims, represent shippers in negotiations with carriers, insurers, and other parties, and litigate on behalf of shippers to recover losses or damages. When working with ocean carriers, we can defend against cargo claims brought by shippers or consignees, advise on the proper handling, stowage, and securing of cargo, assist in the investigation and documentation of cargo incidents, and represent carriers in limitation of liability proceedings.
Cargo claims are subject to strict time limits for filing suit, which vary depending on the applicable law and the terms of the contract of carriage. We can ensure that claims are properly investigated and documented within the required timeframes, and they can also advise on the strategic timing of filing suit or engaging in settlement negotiations to maximize the chances of success. Calculating damages in cargo claims can be complex, involving factors such as the value of the goods, the extent of the loss or damage, and any associated costs or expenses. We can accurately assess the damages and gather the necessary evidence to support the claim and identify any potential issues or defenses that may affect the recoverability of damages.
If you seek representation in a cargo claim, the Law Offices of Albert Goodwin can help you. We represent businesses, insurers, maritime terminals, shippers, carriers, and stevedores throughout the state of New York, including all five boroughs of New York City (Manhattan, Brooklyn, Queens, The Bronx, and Staten Island), Long Island, and Upstate New York. You can call us at 212-233-1233 or send us an email at [email protected].