Shipping Delay Claims: Can You Really Claim It?

Shipping Delay Claims: Can You Really Claim It?

Insights from Real Cases We've Handled, What to Expect, and How We Help You Recover

Many of you have reached out, wondering if you can truly claim for losses due to shipping delays, especially when working under the standard Bill of Lading (B/L) terms. Based on our experience handling cases like yours, it’s possible to recover costs if the claim meets certain conditions. Let’s break down what has worked for our clients, the specific elements that strengthen a delay claim, and the role we play in making it as smooth as possible.

What Constitutes a Shipping Delay Claim?

In the cases we've worked on, successful shipping delay claims often hinge on several factors. Delays don’t automatically mean you’re entitled to compensation, but if the right pieces fall into place, there’s a solid basis for a claim.

1. Contractual Provisions and Bill of Lading (B/L) Terms

   In most cases, shipments fall under the B/L terms rather than a detailed contract, but these terms still hold the carrier accountable for certain responsibilities. We’ve seen that many B/Ls include “reasonable dispatch” clauses, which require the carrier to act without undue delay. However, the specific wording can be vague, and interpretation is key.

   What Has Worked for Our Clients: In one instance, a client had a high-value, time-sensitive shipment that arrived late. We established that the carrier failed to communicate port congestion early on, which could have allowed us to arrange alternative transport. Since the delay led to direct financial losses, we were able to recover a substantial portion of the costs based on the B/L terms.

   Force Majeure Exceptions: Carriers often include clauses that limit liability for delays caused by factors like severe weather or strikes. In some cases, however, we’ve successfully argued that a delay was avoidable or that the carrier could have rerouted the shipment, which placed accountability back on the carrier.

2. Responsibility and Negligence of the Carrier

   For many of our clients, delay claims succeed when we can show that the delay was due to the carrier’s negligence or avoidable actions. Carriers have a duty to ensure timely shipment and avoid unnecessary detours or delays.

   Case in Point: One case involved a shipment where the carrier’s vessel required an unplanned mechanical repair, causing a significant delay. By proving that regular maintenance could have prevented this, we were able to hold the carrier accountable, and the client was compensated for lost sales and storage costs.

   Documentation and Handling Errors: In several cases, delays were due to the carrier mishandling required documents, resulting in customs delays. In these situations, we argued that the carrier’s lack of diligence contributed directly to the delay, which allowed us to file a stronger claim on behalf of our client.

3. Evidence of Financial Impact

   Even with a clear delay, claims require solid proof of financial loss. Through our experience, we’ve learned that meticulous documentation is essential to recovering damages.

   Practical Example: A client once shipped seasonal goods delayed past their peak sale period, resulting in considerable financial impact. By providing evidence of lost revenue, additional storage fees, and missed opportunities, we successfully claimed compensation, showing a direct link between the delay and the financial loss.

   Storage and Handling Charges: In another case, the delay led to extra storage fees at the destination. We documented these costs, highlighting that they were directly tied to the carrier’s actions. The evidence was clear and well-supported, and the claim was approved.

4. Reputational and Business Impact

   While direct financial losses are often straightforward to document, we’ve also worked with clients to showcase indirect impacts, such as reputational damage or strained customer relationships due to delays. Although harder to quantify, these effects help illustrate the full scope of loss to the carrier.

   Example from Our Work: For a client who frequently shipped high-value goods, a delay in a critical shipment led to missed deadlines for their own customer, weakening their business relationship. Although reputational impact doesn’t always result in compensation, we used this to emphasize the seriousness of the delay, securing a quicker and more favorable settlement.

5. International Conventions and Regulatory Considerations

   International shipping often falls under conventions like the Hague-Visby or Hamburg Rules, which influence what’s claimable. Based on our experience, knowing which rules apply can change the outcome of a claim.

   Hague-Visby Rules: In cases where the Hague-Visby Rules apply, we often face limitations on claim amounts. For example, if a client’s cargo missed delivery due to avoidable delays, we could still claim, but within specific weight-based limits.

   Hamburg Rules: Some jurisdictions follow the Hamburg Rules, which are more favorable to shippers. In cases governed by these rules, we’ve successfully argued for higher compensation due to the broader accountability placed on carriers for delays.

6. Specific Causes of Delay

   Through years of handling delay claims, we’ve encountered nearly every reason for shipping delays, from mechanical failures to customs issues. Understanding the specific cause and connecting it to a breach of responsibility by the carrier has often proven crucial.

   Customs Delays: One client’s shipment was delayed at customs because the carrier failed to provide correct paperwork. Since the delay directly impacted the client’s business operations, we used this documentation error to secure compensation for storage fees and additional handling costs.

   Port Congestion: Another case involved port congestion, where the carrier could have rerouted but chose to wait instead. By proving that alternatives were available, we argued that the carrier was responsible for the delay’s impact, allowing the client to recover part of their lost revenue.

7. Carrier’s Communication and Mitigation Efforts

   Timely communication and reasonable attempts to mitigate delays are basic expectations from carriers. Delays are often compounded when carriers fail to update clients or consider alternative options.

   Our Approach to Mitigation Claims: In a recent case, a carrier failed to notify our client about an expected delay due to a storm, even though rerouting was an option. The delay led to missed delivery deadlines. Since the carrier neglected to explore alternatives, we leveraged this oversight to secure a

   partial claim.

   How We Help Clients Maximize Their Claims

   From our experience, successfully claiming for shipping delays requires careful navigation of both legal and operational details. As your claims handlers, we help you build a clear, strong case by:

Thorough Documentation: We gather the necessary documents to show the financial impact of delays, from B/L terms to cost invoices and proof of lost business. Every case we handle involves a custom approach to gathering evidence, as we understand each delay impacts business differently.

Informed Negotiation: Carriers often resist paying out claims for delays, citing limitations in B/L terms. Our experienced team negotiates directly with carriers to achieve the best possible recovery within the contractual boundaries. With our in-depth knowledge of shipping laws and carrier practices, we navigate through potential pushbacks to help you achieve an optimal outcome

Clear Communication and Support: We know how frustrating delays can be, especially when navigating the claims process. We keep you informed at every stage, explaining each step and managing all communication with the carrier, so you don’t have to.

Whether it’s a missed deadline, an unforeseen customs issue, or a port congestion delay, we’ve likely seen it before and know the best ways to handle it. Our goal is to ensure that, when a delay occurs, you can recover as much as possible, maintain your business reputation, and mitigate future risks. If you’re dealing with a delay and wondering about your options, reach out to us to assess your case. With our experience and dedication to your recovery, we’re here to help you make the most of a challenging situation