What is maritime claims management?

Maritime claims management is the disciplined handling of a claim arising from the carriage of goods by sea — from first notice of loss, through evidence preservation and quantum, to recovery from the carrier, terminal, P&I club or cargo underwriter. In the UK it is usually run by a claims handler or in-house logistics manager working alongside the cargo insurer, a recovery agent and, where the claim is contested, solicitors instructed under English law.

What is the time bar for a cargo claim under English law?

Under the Hague-Visby Rules, given force in the UK by the Carriage of Goods by Sea Act 1971, the carrier is discharged from all liability unless suit is brought within one year of delivery (or of the date the goods should have been delivered). Notice of apparent loss or damage must be given in writing at or before the time of removal; for non-apparent damage, within three days. Extensions of the one-year bar are common but must be agreed in writing before the bar expires.

How much can I recover per package under the Hague-Visby Rules?

Carrier liability is limited to 666.67 SDR per package or unit, or 2 SDR per kilogramme of gross weight, whichever is higher — unless the nature and value of the goods were declared on the bill of lading. For containerised cargo the number of "packages" is normally the number of items enumerated on the bill, not the container itself. Convert SDR at the IMF daily rate on the judgment or settlement date.

Who pays a maritime cargo claim — the carrier, the P&I club or the underwriter?

Practically, the cargo underwriter usually indemnifies the assured first under the marine cargo policy, then exercises subrogated recovery rights against the carrier. The carrier's liability is in turn covered by its P&I club, which handles or funds the defence. Deciding whether to claim on the policy or pursue the carrier directly depends on deductible size, the strength of the bill of lading defences and whether the one-year bar can be protected in time.

What is the difference between a cargo claim and a demurrage claim?

A cargo claim concerns physical loss or damage to the goods and is governed by the bill of lading and Hague-Visby Rules. Demurrage is a contractual payment for detaining the vessel or container beyond agreed free time — under a charterparty it is liquidated damages for exceeding laytime; under a liner bill of lading it is a tariff charge levied on the merchant. Different contracts, different evidence, different time limits. Both should sit in the same claims register.

How are maritime disputes resolved in the UK?

Most contracts of carriage and charterparties choose English law and either London arbitration (commonly LMAA terms) or the Admiralty Court within the Business and Property Courts. Small-value cargo claims are usually settled commercially with the carrier or its club correspondent; charterparty demurrage and laytime disputes far more often go to LMAA arbitration, where the LMAA Small Claims Procedure gives a cost-capped route for lower-value matters.

What evidence should a UK claims handler preserve?

The bill of lading or charterparty, commercial invoice and packing list, mate's receipts, container interchange reports (EIR) at each gate move, the statement of facts and notice of readiness for charterparty claims, temperature or datalogger records for reefer cargo, survey reports (instruct a surveyor before unpacking where possible), photographs with metadata, and every piece of carrier correspondence. Issue a holding letter to the carrier immediately and diarise the one-year bar the day the file opens.

Maritime Claims Management: How UK Shippers Handle Cargo, Charterparty and Carrier Claims

Written for UK & EU practice · English law, Hague-Visby, LMAA

Maritime claims management is the process of identifying, documenting and recovering losses that arise from the carriage of goods by sea — cargo damage and shortage, delay, laytime and demurrage exposure, and disputed carrier charges. Under English law the decisive constraint is time: a cargo claim under the Hague-Visby Rules is barred one year after delivery unless suit is brought or an extension is agreed in writing, and charterparty demurrage claims are frequently barred in 90 days. Good claims management is therefore a diary discipline first and a legal argument second.

The maritime claims lifecycle

A claim file that follows these six stages settles faster and survives scrutiny from the underwriter and the club correspondent.

1. Notification

Log the incident the day it is reported. Give written notice of loss or damage to the carrier at or before removal of the goods — within three days where damage is not apparent. Notify the cargo underwriter and, where relevant, the P&I club correspondent at the discharge port.

2. Preservation

Appoint a surveyor before cargo is moved or unpacked. Secure the EIR, packing list, temperature logs and the original transport documents. Do not sign a clean delivery receipt; clause it.

3. Quantum

Build the loss: CIF invoice value, duty and freight paid, survey and disposal costs, salvage credit. Test it against the Hague-Visby package limitation before you make a demand.

4. Liability

Identify the contracting carrier from the bill of lading face and terms — not the vessel operator on the AIS feed. Check the Article IV exceptions the carrier will run, and whether the goods were unseaworthy-stowed.

5. Recovery

Present the claim with a documented demand. Seek a written time-bar extension well before the twelve months expire. Escalate to LMAA arbitration or the Admiralty Court only when the commercial route is exhausted.

6. Closure and learning

Record recovery rate, days to settle, and root cause by lane, carrier and terminal. Feed repeat causes back into the contract review and the free-time terms you negotiate next season.

Time bars that apply to UK maritime claims

These are the defaults under English law and the conventions the UK has enacted. Your bill of lading, charterparty or service contract can shorten every one of them.

Claim type	Governing regime	Notice requirement	Time bar
Sea cargo — bill of lading	Hague-Visby Rules / COGSA 1971	Written notice at removal; 3 days if damage not apparent	1 year from delivery (extendable by written agreement)
Charterparty demurrage / laytime	Charterparty terms (NYPE, Gencon, Asbatankvoy)	Documented claim with statement of facts and NOR	Commonly 90 days from completion of discharge — check clause
Road carriage (UK–EU)	CMR Convention	At delivery for apparent damage; 7 days if not apparent	1 year (3 years for wilful misconduct)
Air carriage	Montreal Convention 1999	14 days damage · 21 days delay	2 years from arrival
Liner demurrage / detention invoice	Carrier tariff and terms of carriage	Dispute in writing per tariff (often 30 days from invoice)	6 years contractual (Limitation Act 1980) — but tariff windows bite first

Who does what: underwriter, P&I club, recovery agent

Cargo underwriter

Indemnifies the assured under the marine cargo policy (typically Institute Cargo Clauses A, B or C), then takes over the recovery by subrogation. Notify them early — a late notification can prejudice cover, and they will often instruct the surveyor.

P&I club (carrier side)

Mutual insurer covering the shipowner’s third-party liabilities, including cargo claims. In practice you deal with the club correspondent at the discharge port, who appoints surveyors and negotiates settlement or security.

Recovery agent or solicitor

Instructed where liability is denied or the sum justifies it. Under English law the route is usually LMAA arbitration or the Admiralty Court; the LMAA Small Claims Procedure caps costs on lower-value disputes.

Your claims register

One list, every open matter, with the bar date in the first column. Files are lost to diary failure far more often than to weak facts.

The claims most UK shippers never open: the invoice

Cargo claims are visible — a damaged pallet demands attention. Overcharged carrier invoices are not. Demurrage clocked while the container was not actually available, detention counted against the wrong free-time table, quay rent duplicated with terminal handling, currency and BAF applied to the wrong tariff line. These recover at a far higher rate than cargo claims because the evidence is documentary and the carrier’s own gate records prove it. Put one invoice through the audit and see what the register has been missing.

Audit an invoice free Open the invoice room

Maritime claims questions, answered

What is maritime claims management?: Maritime claims management is the disciplined handling of a claim arising from the carriage of goods by sea — from first notice of loss, through evidence preservation and quantum, to recovery from the carrier, terminal, P&I club or cargo underwriter. In the UK it is usually run by a claims handler or in-house logistics manager working alongside the cargo insurer, a recovery agent and, where the claim is contested, solicitors instructed under English law.
What is the time bar for a cargo claim under English law?: Under the Hague-Visby Rules, given force in the UK by the Carriage of Goods by Sea Act 1971, the carrier is discharged from all liability unless suit is brought within one year of delivery (or of the date the goods should have been delivered). Notice of apparent loss or damage must be given in writing at or before the time of removal; for non-apparent damage, within three days. Extensions of the one-year bar are common but must be agreed in writing before the bar expires.
How much can I recover per package under the Hague-Visby Rules?: Carrier liability is limited to 666.67 SDR per package or unit, or 2 SDR per kilogramme of gross weight, whichever is higher — unless the nature and value of the goods were declared on the bill of lading. For containerised cargo the number of "packages" is normally the number of items enumerated on the bill, not the container itself. Convert SDR at the IMF daily rate on the judgment or settlement date.
Who pays a maritime cargo claim — the carrier, the P&I club or the underwriter?: Practically, the cargo underwriter usually indemnifies the assured first under the marine cargo policy, then exercises subrogated recovery rights against the carrier. The carrier's liability is in turn covered by its P&I club, which handles or funds the defence. Deciding whether to claim on the policy or pursue the carrier directly depends on deductible size, the strength of the bill of lading defences and whether the one-year bar can be protected in time.
What is the difference between a cargo claim and a demurrage claim?: A cargo claim concerns physical loss or damage to the goods and is governed by the bill of lading and Hague-Visby Rules. Demurrage is a contractual payment for detaining the vessel or container beyond agreed free time — under a charterparty it is liquidated damages for exceeding laytime; under a liner bill of lading it is a tariff charge levied on the merchant. Different contracts, different evidence, different time limits. Both should sit in the same claims register.
How are maritime disputes resolved in the UK?: Most contracts of carriage and charterparties choose English law and either London arbitration (commonly LMAA terms) or the Admiralty Court within the Business and Property Courts. Small-value cargo claims are usually settled commercially with the carrier or its club correspondent; charterparty demurrage and laytime disputes far more often go to LMAA arbitration, where the LMAA Small Claims Procedure gives a cost-capped route for lower-value matters.
What evidence should a UK claims handler preserve?: The bill of lading or charterparty, commercial invoice and packing list, mate's receipts, container interchange reports (EIR) at each gate move, the statement of facts and notice of readiness for charterparty claims, temperature or datalogger records for reefer cargo, survey reports (instruct a surveyor before unpacking where possible), photographs with metadata, and every piece of carrier correspondence. Issue a holding letter to the carrier immediately and diarise the one-year bar the day the file opens.

Shipping into the United States?

US practice uses different vocabulary and different law — “freight claims” rather than maritime claims, the Carmack Amendment for inland legs, US COGSA for the ocean leg, and FMC rules (46 CFR 541) for billing disputes.

Read the US freight claims guide →