Can You Really Claim Direct and Indirect damages from Shipping Lines?

At Seamark Associates, we’ve handled numerous cases involving both direct and indirect losses, and we understand the complexities that come with each type of claim. When clients come to us after their cargo has been damaged or delayed, their primary question is often whether they can be fully compensated for their losses. Based on our experience, the answer depends heavily on the type of loss and how well it aligns with the terms in the Bill of Lading (B/L) or relevant international conventions.

Direct Losses: A Case in Point

In one recent case, we represented a client whose shipment of high-value machinery arrived damaged due to improper stowage. The damage was substantial, impacting both the function and resale value of the equipment. The shipping line’s defense was that their liability should be limited under the Hague-Visby Rules, which cap the payout based on the weight of the damaged cargo, not its actual market value. However, we built a solid case by showing clear evidence of negligence in the carrier’s handling, which strengthened our position.

We documented every aspect meticulously, from photos of the damaged machinery to detailed repair invoices. Our team also highlighted the inadequacy of the carrier’s stowage practices, linking the damage directly to their handling failures. In the end, the carrier agreed to compensate our client for the full repair costs, despite their initial position to limit payout. This case underscores how direct losses are often recoverable, especially when negligence is involved, but it also shows the importance of building a strong, evidence-backed claim.

Indirect Losses: A Challenging Win

Indirect losses, however, are often more complex to pursue. For example, we handled a case where a client’s cargo was delayed, causing them to miss a crucial sales period. As a result, they faced lost profits and strained relationships with key buyers who expected timely deliveries. While the carrier acknowledged the delay, they argued that their liability didn’t extend to indirect damages like lost profits, citing the limitations in the B/L.

In this case, our strategy was to highlight the financial impact on our client’s business and to argue that the delay was both foreseeable and avoidable. We demonstrated that the carrier was informed of the time-sensitive nature of the cargo and could have taken alternative measures to meet the delivery window. Although indirect losses are harder to prove, we succeeded in securing a partial settlement, which covered a portion of the lost profits and storage fees. This outcome was possible only through thorough documentation and a deep understanding of the carrier’s obligations under maritime law.

Navigating Limitations and Defenses

In nearly every case, carriers rely on specific defenses to minimize their liability, often invoking “force majeure” clauses for events like weather disruptions or port congestion. In another case we handled, the carrier tried to avoid liability by claiming that a delay was due to “unforeseeable port congestion,” yet we uncovered that they had been aware of potential issues in that port. By highlighting this oversight, we were able to hold the carrier accountable, resulting in a favorable outcome for our client. It’s cases like these that emphasize the importance of understanding both the letter of the law and the practical realities of shipping operations.

How We Support You

At Seamark Associates, we approach each case with a customized strategy, knowing that every delay or damage incident impacts businesses differently. Our experience has shown that recovering losses—especially indirect ones—requires more than just a claim; it requires a well-documented, legally sound case that anticipates carrier defenses and pushes for accountability.

If you’re dealing with losses from a carrier’s actions, let’s discuss your options. We’ll draw on our experience to assess the specifics, identify the best way forward, and handle the entire process on your behalf to get you the compensation you deserve.