Handling damaged containers is an important part of logistics and shipping operations. It involves a series of procedures and protocols that are aimed at ensuring safety, compliance, and efficiency. With the volume of containerized cargo on the rise, the need to handle damaged containers in the right way is very important to maintaining operational integrity and customer satisfaction.
Let us understand how this is done!
Why Do We Need to Handle Damaged Containers?
Container damage can occur at any stage of transportation, causing heavy financial losses and operational disruptions. The Allianz Global Corporate & Specialty (AGCS) Safety & Shipping Review 2020 reported that the improper handling of loading and unloading is the main cause of container damage, accounting for 65% of claims from incidents involving containers. In 2019, APM Terminals reported more than 1,200 incidents across its terminals globally. These statistics depict how damage can create a big deal in effective control.
Damaged containers go way beyond mere loss of financial currency. Damage is also connected to safety and health issues, environment contamination, and an international maritime agreement. Because of this, logistics companies in Gujarat have the need for formal procedures that apply to damage conditions.
What Is the Reason for Damaged Containers?
It is essential to know the most common causes of container damage for prevention and management. Some of the common causes are listed below:
- Improper Handling: Inadequate handling while loading and unloading leads to collisions and malfunctions, causing damage.
- Environmental Conditions: Containers are exposed to heat damage or corrosion if they are not kept properly, especially near heat sources.
- Road Accidents: The accidents occurring during transportation cause a great deal of damage to containers if proper stowage practices are not followed.
- Water Damage: Container exposure to dampness results in cargo deterioration.
How Should Companies Inspect Damaged Containers?
Prompt inspection is a pivotal step in cargo management in managing damaged containers. When receiving consignments, logistics personnel should observe as follows:
- Visual Inspection: The container exterior shows signs of obvious damages (if any).
- Detailed Observation: Open the boxes that are evidently damaged and describe the problems in your notes by taking pictures.
- Halt Unloading If Severe Damage Is Found: If serious damage is found, stop unloading and report it to concerned parties like carriers and insurance companies.
As per convention, it is recommended to check all containers very carefully before putting them in a warehouse so that no damage may be left out.
What Documentation Is Required for Claims?
When one files a claim for damaged containers, documentation has to be proper. The following paperwork has to be prepared:
- First Notice of Intent to Claim: Notify the carrier about the intention to file a claim.
- Survey Report: An in-depth report from a surveyor that describes the damage.
- Photographs: Visual proof of the damage.
- Commercial Invoice: Proof of the value of the cargo.
- Claim Statement: A detailed statement of loss in terms of commercial value.
- Packing List: A list detailing what was in the container.
- Delivery Receipt: Proof that the goods were delivered.
- Container Destuffing Tally Sheet: A record of items removed from the container.
Having these documents ready can streamline the claims process and increase the likelihood of successful compensation.
How Can Companies Prevent Damaged Containers?
Preventive measures are crucial in reducing the risk of container damage. Here are some strategies:
- Proper Training: Employees should be trained in handling procedures to minimize human error during loading and unloading.
- Quality Packaging Materials: Proper packaging materials will ensure cargo is safe from impact while in transit.
- Regular Equipment Maintenance: Proper maintenance of handling equipment reduces the possibility of mechanical failure leading to accidents.
- Risk Management Strategies: Companies should periodically review and analyze their shipping processes to determine areas vulnerable to weaknesses that can affect shipping.
All of these measures have been proven to significantly decrease cases of container damages.
What Should Be Done After Damaged Containers Is Detected?
When damage is detected, the company should do the following:
- Document Everything: Record every inspection, communication, and finding of the involved damaged container.
- Notify All Interested Parties: Inform carriers, insurers, and shippers immediately.
- Follow Through with Claims: Ensure that claim status checks in with the carriers and insurers until the claims are resolved.
- Implement Corrective Actions: Use findings from inspections and claims processes to improve future handling practices.
These steps ensure companies not only act on current situations but also attempt to prevent them from happening again in the future.
What Is the Impact of Not Managing Damaged Containers Correctly?
The result of not properly managing damaged containers can be detrimental:
- Financial Cost: Companies suffer financially from missing cargo or unresolved damages.
- Legal Problems: Shipping regulations might be violated, thus leading to court cases or legal fines.
- Reputation Damage: Poor handling practices will damage the reputation of a company in a competitive market.
Thus, it is a necessity for Indian shipping and logistics companies to have the right management of damaged containers. Understanding the causes and strict inspection protocols can ensure that there are minimal risks with container damage. The industry should focus on such practices for better efficiency in operation as well as in maintaining client and stakeholder confidence in this highly competitive market.
