Types of Cargo Damage ( based on cargo damage claims)

                                                                                             Source:UK P&I Club

Physical Damage

Cargo is damaged as a result of dropping, rolling, breakages or being knocked by shifting cargo loads during transit. It represents the biggest reason for insurance claims.

The main cause is bad stowage or stuffing of goods inside the container. Bad stowage includes incorrect, insufficient and improper load securement(using lashing, dunnage or choking materials), incorrect weight distribution and improper goods loading configuration affecting the stability of the cargo .

Prevention

The quickest and most cost effective method is to secure the cargo loads inside the containers using dunnage bags, polyester lashings or a combination of both, depending on the cargo type and packing method.

Preventive Cost

The estimated cost of securing the cargo inside a 20’ container range from about USD10 for two dunnage bags or a set of 32mm woven polyester lashing to about USD30 for more complicated cargo loading configuration.

Conclusion

Prevention is better than cure. We should take preventive measures to ensure our cargo arrive at its destination in good condition as the real cost of cargo damage is many folds that of prevention. The financial loss incurred includes rework or replacement of the product, investigation & administrative cost, processing and penalty cost. The intangible cost is even greater in terms of customer goodwill , quality perception and credibility in the market place.