Navigating Cargo Claims: Best Practices for Shippers and Carriers

Cargo claims are an inevitable part of the logistics, transportation and supply chain journey. Damages, delays, or lost goods can disrupt supply chains and create tension between shippers and carriers. At Arete Adjusting, we believe proactive education and preparation are the keys to effectively navigating cargo claims. By following best practices, shippers and carriers can streamline the claims process and foster stronger relationships.

Understanding the Cargo Claims Process

A cargo claim is a formal request to a carrier for financial reimbursement due to loss, damage, or delay of goods during transit. To ensure a smooth process, logistics professionals must understand the steps involved and have the proper documentation in place.

Essential Documentation for Filing a Claim

  1. Bill of Lading (BOL): This is the primary document outlining the shipment details and terms of carriage.
  1. Proof of Delivery (POD): POD verifies the condition of goods upon delivery and can highlight any damage or discrepancies.
  1. Inspection Reports and Photographs: Visual evidence of damages and detailed inspection reports strengthen your claim.
  1. Commercial Invoice and Packing List: These documents validate the value of the cargo and its contents.
  1. Written Claim Submission: A clear and concise claim letter specifying the issue, damages, and requested compensation is vital.

Best Practices for Speedy Resolutions

  • Act Promptly: File the claim as soon as possible within the carrier’s required timeframe to avoid delays or denials.
  • Maintain Clear Communication: Collaborate with the carrier and provide requested information promptly to keep the process moving.
  • Understand Liability Limits: Familiarize yourself with the carrier’s liability under applicable laws or agreements, such as the Carmack Amendment or Hague-Visby Rules.
  • Engage Experts When Necessary: Professional adjusters like Arete Adjusting can provide valuable expertise to navigate complex claims efficiently.

The Role of Arete Adjusting

At Arete Adjusting, we manage cargo claims for shippers, carriers, and insurers. Our team provides expert guidance to minimize the impact of claims, expedite resolutions, and protect your bottom line. By leveraging our industry expertise, you can focus on your operations while we handle the complexities of claim management.

Cargo claims don’t have to derail your operations. You can navigate claims efficiently and maintain strong partnerships across your supply chain with proper documentation, timely action, and expert guidance. Ready to simplify your cargo claims process? Contact Arete Adjusting today for expert support in filing, managing, and resolving claims effectively. Let us help you keep your supply chain running smoothly.

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Why Asian Insurers Should Be Partnering with Arete Adjusting for U.S. and North American Claims Management

For insurers in the Asian market doing business in the U.S. or North America, managing claims and navigating the intricacies of these markets can be challenging. Ensuring that claims are handled efficiently, losses are mitigated, and local regulatory standards are met requires a reliable and experienced partner on the ground. This is where partnering with Arete Adjusting, a Third Party Administrator (TPA) specializing in logistics/marine cargo and liability claims management, provides valuable support.

Arete Adjusting is based in North America and focuses solely on delivering quality outcomes for our clients. Our expertise lies in end-to-end claims management, leveraging our deep local knowledge and well-established relationships with key figures in the claims process, such as brokers, loss adjusters, legal entities, and co-insurers. By partnering with us, Asian insurers gain a trusted local presence that ensures seamless handling of their North American claims portfolios.

Challenges of Managing North American Claims from Asia

For insurers and underwriters based in Asia, managing claims in the U.S. or broader North America presents several challenges. Time zone differences, varying legal frameworks, cultural distinctions, and a lack of local market insight can all lead to delays in claims resolution and inefficiencies in communication. Without an experienced partner on the ground, insurers risk incomplete claims processing, mismanaged recoveries, and unsatisfactory outcomes for their clients.

Partnering with Arete, clients remain informed and abreast of emerging risks that the marine/logistics industry is experiencing in real-time, which may be hard to identify from Asia.

One of the most significant issues is navigating the legal complexity of the U.S. and North American logistics sectors. Regulations and liability standards can differ drastically between regions, and insurers need a partner who understands these nuances to ensure compliance and successful claim outcomes. Arete Adjusting brings this local expertise to the table, ensuring that claims are handled in accordance with the highest standards.

Arete Adjusting: Your Local Expert in North American Claims

Arete Adjusting provides comprehensive claims management services, including surveying, technical investigation of losses, legal review, loss adjusting, and pursuing recoveries against third parties. Our international network of partners and in-house experts ensures that every claim is thoroughly assessed, documented, and resolved efficiently.

For example, we recently assisted an Asian insurer in a particularly challenging situation involving coverage denials. In the U.S., insurance regulations vary by state, meaning denial letters must be tailored to meet state-specific legal standards to avoid potential legal consequences. We worked closely with the insurer to draft legally compliant letters, ensuring that all denials met the necessary state regulations. Additionally, we helped explain the outcomes locally to the claimants, making the process smoother for everyone involved. Denials are always difficult, but we felt that our involvement was especially appreciated in this instance, as it helped the insurer navigate the complexities of U.S. regulations and provided clarity for the claimants.

The Benefits of Partnering with a U.S.-Based TPA

  1. Local Expertise: Arete Adjusting provides on-the-ground knowledge of U.S. and North American markets, helping Asian insurers navigate the complexity of claims processing in these regions.
  2. Seamless Communication: Time zone differences and communication delays are minimized, with a local partner handling claims in real time, ensuring smooth and efficient processes.
  3. Comprehensive Claims Management: From initial survey to final recovery, Arete Adjusting manages the entire claims process, offering Asian insurers peace of mind that their North American claims portfolios are handled with care.
  4. Customized Solutions: Every insurer has unique needs, and Arete Adjusting works closely with each client to tailor our services to meet those requirements.
  5. Sustainable Results: By providing consistent, high-quality outcomes, Arete Adjusting helps Asian underwriters build more profitable and sustainable portfolios.

Why Asian Insurers Should Consider Arete Adjusting

Partnering with Arete Adjusting is a strategic move for insurers in Asia who manage claims in the U.S. or North America. Our in-depth understanding of local markets and our international capabilities mean that insurers can trust us to deliver quality outcomes for their clients. Whether it’s handling claims in the logistics sector or providing technical investigations and legal reviews, we offer a comprehensive solution that supports your business goals.

Businesses should keep in mind that in the US, there can be serious repercussions when US insureds file complaints with the State Department of Insurance (DOI) over their claim. If these State DOIs find that domestic/overseas insurers are not using licensed adjusters, it could lead to fines and reputational damages. Arete Adjusters are licensed across the US and are compliant with State Adjuster licensing requirements.

We understand the challenges that insurers face when operating across borders and are committed to simplifying the process for you. Arete Adjusting acts as your local partner, ensuring that you remain informed and in control without managing the complexities of claims processing from afar.

Looking to simplify your North American claims management? Contact Arete Adjusting today to discover how we can act as your trusted partner and ensure seamless claims handling for your business.

Posted in Claims, UncategorisedTagged in , , , ,

Protecting Your Cargo: The Importance of Accurate Documentation on Ocean Bills of Lading

In the world of international shipping, few documents are as critical as the ocean bill of lading (BOL). Serving as the contract of carriage between the shipper and carrier, this document not only outlines the terms of the shipment but also plays a crucial role in resolving claims when issues arise. For direct shippers, accurately declaring cargo piece counts on the B/L is vital to protecting their investment and avoiding costly errors.

The Impact of Inaccurate Documentation

One of the most common mistakes direct shippers make is allowing freight forwarders to declare the number of pallets instead of the individual pieces of cargo. Liam, CEO of Arete Adjusting, pointed out how this can negatively impact a shipper’s ability to file claims if something goes wrong. “I’ve seen claims not have their fullest outcome in the event of a loss because freight forwarders are putting the number of pallets, not necessarily the individual pieces of cargo,” Liam noted.

This distinction is crucial, especially considering that a carrier’s liability in ocean freight is often limited to around $500 per package. By documenting the number of pallets, shippers may unwittingly limit their recovery in the event of a claim. For instance, a shipment consisting of 13 pallets may actually contain thousands of individual items (cartons, drums, barrels, etc.), but if the B/L only lists the pallets, compensation in the case of damage or loss will be calculated based on those pallets—not the actual number of pieces.

Avoiding Claims Pitfalls: A Closer Look at Bills of Lading

Accurately identifying the cargo on the B/L is not just about ensuring proper liability coverage; it’s also essential for meeting customs requirements. Each country has its own import regulations, and failure to properly count and describe the cargo can lead to costly delays, fines, or even refusal of entry. This is particularly important when shipping high-value or sensitive goods.

For cargo bound for the United States, CBP regulations require the smallest individual unit of packaging be reflected not just on transport documents, but for electronic manifest and admissibility filings to the agency as well.

Freight forwarders are responsible for understanding the specific requirements of each destination country, but direct shippers must also take an active role in ensuring accuracy. While forwarders are often aware of country-specific regulations, they may not always provide the level of detail needed on the B/L, particularly when it comes to itemizing pieces of cargo.

Shippers should be proactive in reviewing the B/L draft before the document is issued. Double-checking that the actual number of pieces—not just the number of pallets—is clearly stated can prevent misunderstandings with customs authorities and reduce the risk of complications down the line.

Practical Tips for Shippers

Based on Arete Adjusting’s experience in handling claims for direct shippers, here are some key steps you can take to protect your cargo:

  1. Review the Draft B/L: Before your shipment is finalized, carefully review the draft BOL to ensure that the number of pieces of cargo, rather than just the number of pallets, is accurately documented.
  2. Work with Knowledgeable Forwarders: Choose a freight forwarder that is experienced in navigating international customs regulations. Freight forwarders connected to networks like the WCA are better equipped to handle complex documentation requirements.
  3. Understand Carrier Liability Limits: Be aware of the carrier’s liability, which can often be limited to a specific amount per package. Ensuring that each piece of cargo is properly accounted for on the B/L can help protect your rights in the event of a claim.
  4. Communicate with Your Forwarder: Maintain open communication with your freight forwarder to ensure that they understand the specific nature of your cargo and how it is packed, if there are overpacks involved and what quantity is being reported on both documents and in electronic declarations. This includes making sure they are familiar with the customs requirements of your destination country.

By following these steps, direct shippers can better protect their cargo and avoid the risks associated with inaccurate documentation.

At Arete Adjusting, we’ve seen firsthand how small mistakes in documentation can lead to big problems for shippers. Accurate bills of lading are critical for ensuring the proper handling of claims and avoiding delays with customs authorities. By taking a proactive approach and working with experienced partners, direct shippers can safeguard their cargo and reduce the likelihood of costly errors.

If you need guidance on navigating claims or ensuring your documentation is in order, Arete Adjusting is here to help. Our experience in handling claims for direct shippers allows us to provide expert advice and support every step of the way. Reach out today to learn how we can assist with your shipping needs.

Posted in Claims, UncategorisedTagged in , , , , , , , , ,

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