When cross-border transactions are marred by damaged goods in international shipping, the complex interplay of interests between buyers, sellers, carriers, and freight forwarders makes liability determination crucial. This guide examines responsibility allocation, compensation rules, and key considerations for claims.
I. Core Liability Allocation: A Multidimensional Analysis
Determining responsibility for damaged international shipments requires careful examination of root causes, relevant regulations, and industry practices.
1. Carrier (Courier Company) Liability
The most common scenario involves carrier negligence during transit, including:
- Improper handling: Rough loading/unloading, careless sorting, or failure to follow special handling instructions (e.g., keeping items upright)
- Transport equipment failure: Vehicle vibrations, ship movements, or aircraft turbulence causing collisions or crushing
- Protection failures: Ignoring packaging labels or special requirements (temperature control, moisture protection, shock absorption) leading to deterioration; incorrect logistics information causing delays or misdelivery
Under Article 832 of China's Civil Code and Article 18 of the Montreal Convention, carriers bear responsibility for damage during transit unless they can prove it resulted from force majeure, inherent product characteristics, or shipper/recipient fault.
2. Shipper (Sender) Liability
Shippers must ensure proper protective measures before dispatch. Liability typically falls on shippers when:
- Inadequate packaging: Fragile items without sufficient cushioning or boxes too weak for transit stresses
- Misdeclaration: Falsifying product attributes (e.g., labeling hazardous materials as ordinary goods) preventing proper safeguards
- Product defects or natural deterioration: Items prone to damage even under normal shipping conditions
Notably, if freight forwarders provided clear packaging guidelines that shippers ignored, shipper responsibility becomes more definitive.
3. Recipient Liability
Recipients must inspect goods upon delivery. They assume responsibility when:
- Failing to inspect: Accepting shipments without examining for visible damage, then later discovering issues without proof damage occurred pre-delivery
- Improper handling: Damaging items during post-delivery unpacking, movement, or storage
Recipients retaining evidence of pre-delivery damage may still pursue claims against carriers.
4. Force Majeure & Third-Party Liability
- Force majeure: Earthquakes, tsunamis, or wars typically exempt carriers, provided they demonstrate direct causation
- Third-party faults: Damage caused by transfer agents, port operators, or other intermediaries falls on the responsible parties. The Montreal Convention may impose joint liability on contracting and actual carriers
5. Freight Forwarder Liability
As intermediaries, forwarders face responsibility for:
- Customs errors: Incorrect declarations prompting inspections that damage goods
- Transfer mistakes: Mishandling during handoffs causing loss or damage
- Packaging negligence: Failing to provide adequate packaging advice
- Coordination failures: Poor transfer management leading to delays or misroutes that cause damage
II. Insurance & Compensation Rules: Defining Payment Boundaries
1. Insured Shipments
When senders purchase insurance, compensation reflects the ratio between insured value and actual loss, capped at the insured amount. Carriers acting intentionally or with gross negligence may face full liability beyond insurance limits.
2. Uninsured Shipments
Without insurance, compensation typically involves:
- Multiples of shipping fees: Often 3-5 times the base freight cost
- International convention limits: For air shipments, the Montreal Convention sets compensation at 17 Special Drawing Rights per kilogram
III. Efficient Claims & Evidence Collection: Protecting Rights
Prompt action and thorough documentation are essential when pursuing damage claims:
1. Immediate Inspection
Examine packaging upon delivery. Document any damage with photographs (showing exterior, damaged areas, tracking numbers) and request delivery personnel note "damaged" on receipts.
2. Timely Reporting
Submit written claims to carriers/forwarders within 7-14 days, including shipping documents, invoices, photos, and loss inventories.
3. Identifying Responsible Parties
Initially approach the contracting carrier (the company that issued the shipping contract). For actual carriers (e.g., airlines), pursue claims under relevant conventions. Hold forwarders accountable per agency agreements.
4. Legal Recourse
If negotiations fail, pursue litigation or arbitration per contract terms. Key evidence includes documentation proving when damage occurred, its causes, and financial losses. Preserve all shipping records, visual documentation, and correspondence.