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A freight claim or cargo claim is a legal demand by a shipper or consignee against a carrier in respect of damage to a shipment, or loss thereof. [1] [2] [3]Typically, the claimant will seek damages (financial compensation for loss), but other remedies include "specific performance", where the cargo-owner seeks delivery of the goods as agreed.
The Lloyd's Open Form, formally "Lloyd's Standard Form of Salvage Agreement", and commonly referred to as the LOF, is a standard form contract for a proposed marine salvage operation. Originating in the late 19th century, the form is published by Lloyd's of London and is the most commonly used form for international salvage.
The Hague Rules of 1924 effectively codified, albeit in a diluted form, the English common law rules to protect the cargo owner against exploitation by the carrier. Nearly 50 years later, the Hague-Visby "update" made few changes, so that the newer Rules still applied only to "tackle to tackle" carriage (i.e. carriage by sea) and the container ...
Freight claims are an inevitable part of logistics. They often lead to frustration and stress due to delays, miscommunications, and incomplete documentation. Communicating with carriers about claims often further confuses and delays settlements, which has a detrimental effect on customer satisfaction and the bottom line.
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Laches is a form of estoppel for delay. A person fails to arrest the ship within a reasonable time may result in cancellation of the original claim. The time of delay will be determined on a case-by-case basis. The idea is that the holder must show diligence exercising the lien. Another method is an execution sale in a rem. This also removes ...
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First-party shipping-insurance services offered by postal services and courier companies may have many more restrictions than third-party shipping-insurance services. First-party insurance services may not pay out on claims unless the item was packed very carefully. Claimants also may need to provide proof of an item's value. [2]
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