Why fruit damage claims are rejected by shipping lines.

Over the past months, we have been studying our portfolio to determine some of the causes of rejections of cargo claims recoveries.

What was immediately apparent to us was that the leading reason for rejecting fruit claims was lack of supporting documents. So action needs to be taken and taken fast.

There are a few behavioural changes that have to be made by international traders of fruits and marine cargo insurers to help improve on recovery outcomes.

Exporters

  • Collect meticulous details on the quality and handling of the cargo from farm to port. Record harvest dates, keep cold storage receipts, record firm stack dates etc
  • Take photographs, a lot! Take photographs depictingFruit external quality
  • Where temptales are placed in the reefer containers
  • External condition containers
  • Confirming the presence of scrubbers or not

 

Importers

  • Take pictures of the external conditions of the container before opening it.
  • During discharge, take pictures confirming the locations of temptales before removing them.
  • Keep meticulous details of damaged fruits
  • Salvage sale accounts and receipts
  • Destruction certificates

 

We cannot overemphasise the importance of being able to demonstrate that the claimant (insurer, exporter or importer) holds the rights to claim. So do well to collect all contracting documents early enough to avoid jeopardising the outcome of the claim in future.

 

Ship safe!