Compensation for Damaged Goods: What to Do and How to Get Compensation?

Unfortunately, damage to goods during delivery from China to Ukraine is not uncommon. This can happen to any cargo, regardless of its size, weight, or value. In this article, we will discuss what to do if you receive damaged goods and how to obtain compensation from the logistics company.

Determining the Responsible Party

First of all, you need to determine who is responsible for the damage to the goods. This could be:

• the seller if the goods were damaged before shipment;
• the carrier if the goods were damaged during transportation;
• the insurance company if you insured the cargo.

To determine the responsible party, it is important to study the terms of the transportation contract. It should clearly specify provisions regarding liability for damage to the goods.

Possible Causes of Goods Damage

Transportation of products always carries the risk of losing their marketable appearance. Let's consider the most common causes of goods damage during transportation.

• Improper packaging of the goods. Insufficiently strong and improperly sized packaging cannot protect the goods from impacts and other factors that arise during transportation.
• Careless handling. Careless loading, unloading, and transportation, throwing, and hitting the packaging will lead to mechanical damage.
• Adverse conditions. Improper temperature or humidity levels can cause product spoilage.
• Force majeure circumstances. Natural disasters, accidents, and other unforeseen events pose a risk of damage or loss of cargo.

Force majeure circumstances may be the reasons for the damage to the goods.

Loss of product quality during transportation causes significant financial losses for the cargo owner. Therefore, it is important to carefully choose a carrier, properly pack the goods, and insure them in case of force majeure circumstances.

Recording the Damage

If you have received damaged goods, it is important to record the violation of integrity as soon as possible. To do this, draw up an act of defects of the goods with the participation of representatives of the logistics company. Describe the nature of the damage in it and take detailed photographs of the packaging deformation and the goods themselves. Take photos from different angles.

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Keep all documents related to transportation and damage to the goods:

• bill of lading;
• act of damage;
• photographs;
• correspondence with the logistics company.

It is important to have all the necessary documents to confirm the fact of damage, determine the cause, and obtain compensation.

Submitting a Claim

The next step is to submit a claim to the logistics company. In it, describe in detail how and under what circumstances the goods were damaged, and attach a reference to the act of damage and photographs.

Formulate your demand for compensation for damages. Clearly state the amount you want to receive. Submit the claim for consideration in a timely manner. Usually, it needs to be submitted within 14 days from the moment of receiving the goods.

In our podcast "Let's Talk," we discuss what to do with damaged goods, provide practical advice and recommendations:

Can Damaged Goods Be Returned?

Returning goods with damaged packaging is a common question from customers. The issue is, how can one determine at which stage the goods were damaged? This will be subject to investigation by the insurance company. And there are two options here:

1. You received damaged goods at the warehouse. For example, let’s consider a situation with imports from China. This is the fault of the local logistics company/supplier. In this case, you can return the items and receive monetary compensation or a replacement.
2. The goods were damaged during transportation from China to Ukraine. You will need to prove that they left the port/airport intact and were damaged on the way. In this case, the insurance company will compensate the losses without returning the goods.

Each insurance case is individual, so it’s important to specify all conditions, risks, and compensations in contracts with suppliers and companies handling international logistics services.

Tips for Preventing Damage

To minimize the risk of damage to goods during transportation, it is recommended to:

• use high-quality and durable packaging materials;
• collaborate with trusted logistics companies;
• insure the cargo for its full value.

Insurance is your protection against risks associated with transporting goods.

Obtaining compensation for damaged goods is a process that requires knowledge of your rights and a course of action. Follow these tips, and you will increase your chances of successfully resolving the issue.

How to Deliver Goods Without Problems

DiFFreight is your reliable partner in logistics. We provide only professional and prompt organization of international cargo transportation. We know all the nuances of working with China and are ready to assist you with ordering and delivering any goods via sea or air freight deliveries.
If the goods arrive damaged, we will help you file a claim with the insurance company so you receive a fair compensation. The customs broker service includes document preparation and proper insurance.