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> Container Services > Cargo Claim Procedure

Cargo Claim Procedure

HYUNDAI MERCHANT MARINE CO., LTD (HMM) provides professional and responsive claim handling to resolve any possible claim as accurately and fast as possible.

In the event of loss or damage to your cargo while in the care of HMM, these procedures will tell you what to do, how to set up a claim and finally what you can do in order to minimize the risk of damage and loss. The following procedures are designed to answer your questions and guide you through the claims process and will cover.

When taking delivery of cargo – make sure that any loss and damage is registered. You should

  • 01
    • Check that the container is externally sound and undamaged
  • 02
    • Check that the original and other seals, if any, are intact
  • 03
    • For reefer, check the temperature, humidity and ventilation settings (where applicable)
  • 04
    • If damage or loss is suspected or apparent, please make a note on the receipt before signing it and send a Notice of claim to HMM
  • 05
    • If damage or loss is not apparent, please make sure you notify HMM in written (Form of Claim Notice) as soon as you are aware of any loss or damage and in any circumstances no later than 3 days of taking delivery. Please refer to Clause 24 (A) of the HMM bill of lading.

In case of loss or damage – What should I do?

  • 01
    • Inform your insurance company
  • 02
    • Arrange for a survey – preferably, please take photos of the damaged condition of cargo and container boxes to support your loss and/or the probable cause of damages at the time of devanning. Unless HMM requests to hold the empty container, please return the empty container as originally scheduled. If possible, this should be a joint survey together with HMM. Immediately contact your local HMM office or agent to report the damage or loss in order to coordinate the survey. If you estimate the value of the damaged goods exceeds USD 3,000, HMM will order a survey to inspect the goods and the circumstances surrounding the damage or loss. If HMM do not assign a surveyor, please take photographs and document the extent and type of damage to the goods and to the container. The survey ordered by HMM is strictly for HMM internal use only.
  • 03
    • Determine whether or not you have a claim and wish to file a claim. The extent and possible cause of the damage have to be considered before submitting a fully-documented claim with your insurance company, or HMM directly if your cargo is not insured.
  • 04
    • If you wish to file a formal claim, it is highly recommended that you provide “Notice of Claim” including HMM B/L number, Container number, Vessel/Voyage number, a brief description of the nature of cargo damage, the estimated loss amount, if applicable.
  • 05
    • Minimize the loss by salvaging the remainder of your goods and take other relevant precautions to protect your cargo and its value for the purpose of loss mitigation
  • 06
    • Ensure that HMM receives a fully documented claim. Your claim may be subject to a time bar. Please refer to clause 24 (B) of HMM bill of lading

To whom should I send the claim?

  • 01
    • Submit the claim to your insurance company or directly to the contract party(s) suspected of causing the loss or damage (e.g,, ocean carrier, rail carrier, or trucking company)
  • 02
    • To file your claim with HMM, submit the documents to your local HMM offices. (Locations of our local offices are available at HMM Homepage)
  • 03
    • Depending on where your goods are discharged in damaged/loss, your claim will be handled by the HMM Claim Teams in regional headquarters
      • - Asia & Oceania Countries (Incl. East Russian area)
        HMM Marine Claims in Seoul(legal@hmm21.com)
      • - Europe & Africa Countries (incl. Gulf Area in the Middle East Asia)
        HMM Europe Claims in London (claims.eu@hmm21.com)
      • - North & South America Countries
        HMM America Claims in Dallas (claims@hmm21.com)
        (In this area, direct contact with HMMA Claims is highly recommended)

Documentation – What documents should I send?

  • 01
    • A well-documented claim will facilitate the claims handling process and speed up the outcome. No specific form is required, however, claims should be include the following
      • - A letter detailing the nature and extent of your loss or damage, as well as the amount being claimed. (any claim must be filed in writing)
      • - Copy of HMM original bill of lading or seaway bill (incl. House B/L, if any)
      • - Shipper’s commercial invoice
      • - Shipper’s packing list
      • - Trucker’s delivery receipt / Devanning tally with seal no. and exceptions, if any
      • - Export / Import declaration
      • - Customs declaration
      • - Survey report
      • - Photos of damaged cargo and the container if it is damaged as well. Digital pictures are acceptable and should be forwarded via e-mail.
      • - Reconditioning or Repair invoices (if applicable)
      • - Salvage invoice, if cargo was salvaged
      • - Destruction certificate or Statement describing disposition of the cargo, in case of unsalvageable cargo
      • - Veterinary certificate (if applicable)
      • - Other substantiating documents

What will HMM do when it receives the claim?

  • 01
    • When HMM receives the claim, we will acknowledge receipt within 30 days in general and the claim will then be processed. We do not acknowledge preliminary claims or notices, but retain them pending receipt of any actual claim.
  • 02
    • Your claim can be resolved in a timely manner, if the initial claim is fully documented. HMM will let you know findings as soon as possible. In general, the claim will be assessed according to legal liability as set forth in HMM bill of lading, tariffs, and by-law and will be settled within 90 working days after receiving your fully-documented claim, except where HMM has demonstrated active discussions and/or communications with claimants.

Loss mitigation – Your responsibilities

  • 01
    • Mitigation of loss is the cargo owner’s responsibility. You must take all reasonable steps to mitigate the loss (e.g., separating wet goods, cleaning, repackaging, and salvage, if necessary)

Things to remember

  • 01
    • Time for claim / suit - Suit for cargo loss or damage must be filed within one year from the date the cargo was delivered or should have been delivered, unless a written request for extension has been received and granted by HMM.
  • 02
    • HMM Liability - HMM’s position on liability of cargo loss/damage will comply with terms and conditions of reverse side of HMM’s bill of lading and related international / local law such as Hague and Hague-Visby Rules, Korean Law, USA COGSA, etc.
  • 03
    • Per package / unit limitation - In the absence of a declaration of value at the time of shipment and payment of an ad valorem freight rate, HMM’s liability is limited to 500 SDR per package or for goods not shipped in packages, per customary freight unit. Where jurisdiction dictates application of the Hague Rules, per package / unit limitation is determined by applicable law.

Preventing loss and damage

Upon picking up empty containers or stuffing your goods to containers, please ensure that

  • 01
    • All cargo
      • - Ensure that you use a suitablecontainer size and type
      • - Check that cargo marks and numbers are identical with those of your documentation including the bill of lading
  • 02
    • Dry cargo
      • - Ensure that the containers are in a clean, odor free and sound condition before stuffing them
      • - Ensure that the cargo is suitable and packaged for container stowage
      • - Ensure that the container is stuffed in a proper and secure manner so that the cargo cannot shift during transportation ; in particular, should void space be filled by appropriate dunnaging?
      • - Ensure that the container is properly closed and sealed
      • - Ensure that all required notices (documentation are given for dangerous or precious cargoes)
  • 03
    • Reefer cargo
      • - WE recommend that you make a physical inspection to ensure that the actual ventilation setting corresponds to the requested setting
      • - Check the temperature requirements for your cargo type
      • - Pre-cool your cargo to the correct set temperature
      • - Stuff the container in a cold facility (i.e. ensure that the cold chain is never broken)
      • - Re-check the temperature before delivering the container
      • - Do not mix incompatible cargoes in the same container
      • - Do not stuff the cargo above the red load line
      • - Ensure that the containers are in a clean, odor fee and sound condition before stuffing them
      • - Ensure that the container is stuffed in a proper and secure manner so that the cargo cannot shift during transportation ; in particular, should void spaces be filled by appropriate dunnaging?
      • - Ensure that the container is properly closed and sealed
  • 04
    • Pursuant to Clause 11 (C) of HMM bill of lading, the Merchant, i.e. you should inspect each container before using it, and the Merchant, i.e. you are therefore deciding yourself that the container is in sound and suitable condition for the transport contracted for in this Bill of Lading. The Ocean Carrier, i.e. HMM shall have no liability for loss / damage to the cargoes arising out of the unsuitability of the container if the unsuitability would have been apparent upon reasonable inspection by the Merchant, i.e. you at or before the time of packing the container