Cargo damage is often discovered at the exact moment the scene is most likely to change: a truck is waiting to leave, container doors have just been opened, unloading continues or the terminal wants the position cleared. A few incorrect actions — signing a clean receipt, moving every package, discarding the seal or packaging, or photographing only after re-stacking — can break the evidence chain and make the loss location impossible to establish. A sound response must achieve four things at once: protect people, preserve the condition, enter a precise reservation and prevent further loss. This article converts those requirements into a time-based response process, damage-triage matrix, evidence pack and notification workflow for carriers, forwarders, ports/warehouses, sellers and insurers.

Prepared by TGIMEX · Updated 21 July 2026 · B2B cargo-loss incident response

QUICK FACTS

First 0–5 minutes

Stop activity at the exception point, isolate hazards and preserve cargo, seal, vehicle or container position.

Before cargo is moved

Photograph and film from overview to close-up; reconcile packages, marks and seal and identify witnesses.

Before signing receipt

Enter a precise reservation on POD/EIR/tally; do not use a vague remark or sign a clean receipt.

Within the discovery shift

Send preliminary notice, open a deadline register, arrange survey where needed and place cargo–packaging–samples on evidence hold.

SCOPE OF APPLICATION

Applies to visible or suspected loss discovered at a port, CY, CFS, air cargo terminal, bonded or ordinary warehouse, or delivery point, including denting, tearing, wetting, breakage, shortage, seal discrepancy, leakage and temperature excursion. The checklist is embedded in the operating process and does not replace dangerous-goods response plans, food/pharmaceutical safety decisions, authority requirements, conditions of carriage, warehouse contracts or the shipment insurance policy.

KEY TERMS

Term	Meaning	Operational role
Apparent damage	Damage visible at handover, such as denting, tearing, wetting, breakage or a missing package.	Record it at delivery whenever the operating conditions permit.
Concealed damage	Damage discovered only after opening the package or inspecting the contents.	Retain packaging and stow position and notify upon discovery; notice rules may differ from apparent damage.
Shortage / Short delivery	Packages, weight or quantity delivered below transport or commercial records.	Distinguish an entire-package shortage, an internal shortage and a data error.
Reservation / Exception remark	A condition reservation entered on POD, EIR, tally or receiving record.	Creates time-stamped evidence that receipt was not acknowledged as complete and sound.
Survey	Independent inspection or inspection appointed by insurer/carrier.	Documents condition, possible cause, scope and mitigation; does not by itself decide legal liability.
Mitigation / Sue and labour	Reasonable action to prevent loss from spreading or increasing.	Retain condition evidence, professional instructions and actual costs.
Salvage	Cargo or material retaining value through repair, recycling or sale after loss.	May affect loss calculation; do not dispose while inspection and recovery rights remain open.
Subrogation	An insurer’s recovery right after indemnity, subject to law and contract.	Do not release liable parties or destroy evidence that may prejudice recovery.

OPERATING PRINCIPLE

A cargo claim commonly involves at least four parallel relationships: sale contract, carriage contract, logistics/warehouse service contract and cargo insurance. Incoterms allocates delivery, risk transfer and insurance obligations between seller and buyer, but does not itself decide carrier liability. Carrier liability depends on the transport document, conditions of carriage and applicable convention or law; insurance recovery depends on insured risks, exclusions, deductible, cause and policyholder duties. Preliminary notice should therefore be opened in parallel to potentially relevant parties, with liability allocated later from evidence.

Relationship	Documents to review	Decision question	Operational output
Sale	Contract/PO, specification, Incoterms, invoice and packing list	What had to be supplied, to what quality, and where did sale risk transfer?	Replacement, credit note or seller claim route.
Carriage	B/L, sea waybill, AWB, conditions of carriage and route	Who is the contractual carrier and in what condition was cargo received and delivered?	Notice/claim to the carrier or transport-document issuer.
Logistics/warehouse	Service contract, SOP, POD, EIR, tally and CCTV	At which custody point did the discrepancy arise and who controlled count/storage?	Service-liability record and recovery dossier.
Insurance	Policy/certificate, clauses, deductible and claim instruction	Is the cause within cover and what notice, survey and mitigation duties apply?	Insurance claim and preserved subrogation rights.

DAMAGE TRIAGE AND ESCALATION MATRIX

Exception	Immediate action	Critical evidence	Do not conclude too early
Dented, torn or deformed package	Segregate; photograph all sides, pallet and stow position; inspect contents under control; record affected packages and severity.	Reserved POD/tally, pre-movement photos, packaging, dunnage, shock/tilt indicator, QC or function test.	Dented packaging is not automatically a total loss; intact packaging does not exclude concealed damage.
Wet carton, pallet or cargo	Stop further ingress; mark wet areas; measure conditions where appropriate; collect samples only under survey/QC direction.	Water tracks, roof/floor/walls, seal, weather, logger, humidity, samples and salvage records.	Do not label it seawater, rainwater or condensation from appearance alone.
Missing packages at delivery	Pause tally; recount by marks/lot; reconcile seal, container/ULD, house–master documents, manifest and warehouse records.	Inbound/outbound tally, seal record, EIR, CCTV, weight/scan, POD, packing list and opening record.	An intact seal does not prove completeness; shortage may pre-date sealing or arise from bad data.
Missing/mismatched/tampered seal	Do not open unilaterally in a controlled area; notify carrier/terminal and authority under SOP; arrange witnessed opening.	Seal and locking-bar photos, document seal number, EIR, CCTV, exception report and witnesses.	Do not presume theft before excluding recording error, authorized resealing or documented inspection.
Leaking package or suspected dangerous goods	Isolate, do not touch or smell, use PPE/SDS and call safety/emergency personnel.	SDS, UN number, labels/marks, safe-distance photos and incident record.	Human and environmental safety overrides claim evidence.

DOCUMENTS AND EVIDENCE TO CHECK

Document/evidence	Issuer or creator	Fields to retain	Purpose
POD, EIR, warehouse receipt, tally sheet	Carrier, terminal, CFS, warehouse or receiver	Date/time, place, vehicle/container/ULD, seal, packages, precise remark, signature/witness.	Shows condition at custody transfer.
Site photos and video	Receiver, warehouse or surveyor	Overview to close-up, scale, marks/labels, seal, stow position, original files and timestamps.	Reconstructs condition and loss scope.
Transport documents	Carrier/forwarder	B/L, sea waybill, AWB, house/master document, booking and conditions of carriage.	Identifies parties, route, contractual carrier and time bars.
Commercial documents	Seller/buyer	Contract/PO, invoice, packing list, specification, Incoterms and named place.	Shows expected cargo, value, quality and sale risk.
Insurance documents	Insurer/broker/policyholder	Policy/certificate, clauses, insured value, deductible, voyage, interest and claim instructions.	Determines cover and insurer dossier.
Survey/QC records	Surveyor, QA/QC, repairer or laboratory	Possible cause, affected quantity, repair/salvage feasibility, samples and test method.	Quantifies loss and mitigation.
Loss calculation	Finance, procurement, QA and claim team	Invoice value, tax treatment, repair/repacking, salvage, disposal, quantity loss and credit note.	Supports actual claim amount and prevents duplication.
Notice and correspondence log	Claim owner	Recipients, time, subject, attachments, response and reservation of rights.	Shows timely notice and case control.

TIME-BASED INCIDENT RESPONSE PROCESS

Internal response point	Required action	Evidence/output	Hold point or escalation
0–5 minutes: safety and scene lock	Stop unloading or movement at the exception point; check leakage, odour, batteries/chemicals, door pressure, cargo fall-out or cold-chain failure; cordon the area and appoint one incident owner.	Untouched overview images, location sketch, discovery time, people present and work status.	Evacuate/isolate for people or environmental risk; claim preservation never overrides safety.
5–15 minutes: identity check	Match container/ULD/vehicle, seal, B/L–AWB–house document, marks, package count and handover location; do not unilaterally cut a discrepant seal where witnessed opening is required.	Seal number, container/vehicle/ULD ID, door/locking/exterior photos, packing list and initial tally.	Missing/mismatched seal, wrong unit or tampering signs require carrier/terminal and authority escalation under the applicable process.
Before re-stacking or relocation	Capture a sequence: overview → stow position → each package → labels/marks → damage → floor, roof, walls, pallet, dunnage and possible water source.	Original timestamped files, photo index, scale/reference object and CCTV preservation request.	Close-ups alone lack context and may not prove location or cause.
Before signing POD/EIR/tally	Recount by marks/lot and enter a specific reservation covering packages, condition, seal and unexamined scope. Suggested wording: “Received with reservation: …; pending joint survey and quantity/quality verification”.	POD/EIR/tally with remark and signatures, or record of delivery party refusing to sign, plus witnesses.	Do not sign clean because a truck or terminal is pressing for time; reservation is not automatically rejection.
Within 30–60 minutes: preliminary notice	Notify contractual carrier/forwarder, terminal/CFS/warehouse, seller, insurer/broker and internal stakeholders; state shipment ID, discovery place, damage type and evidence-preservation request.	Timestamped email/ticket, recipients, preliminary photos, joint-survey request and deadline register.	This is a proposed internal SLA, not a substitute for notice periods or time bars in transport/policy/service documents.
Within the discovery shift: mitigate and quarantine	Protect from water, move only to safety, maintain temperature or segregate suspect cargo under competent instructions; retain packaging, seal, pallet, samples and salvage.	Quarantine tags, movement log, before/during/after photos, logger/temperature data, mitigation cost and chain of custody.	Do not destroy, fully repair or sell salvage before inspection opportunity unless safety makes immediate action unavoidable.
When conditions permit: joint survey	Invite surveyor and relevant parties; agree package opening, sampling, testing, counting, weighing and repair/repacking/salvage assessment.	Attendance record, sample log, test protocol, site minutes and preliminary cause map.	A survey report is technical evidence; it does not by itself determine liability or payable amount.
After survey: quantify and open claims	Reconcile invoice, packing list, tally and transport records; calculate missing goods, repairable goods, reasonable costs, salvage, credit notes and actual loss; submit formal claims to the correct relationships.	Claim statement, loss calculation, invoices/quotes, survey report, correspondence and claim reference.	Avoid duplicate recovery and do not sign a release that prejudices carrier recovery or insurance rights.
Close-out and prevention	Track settlement/recovery, preserve originals and update CAPA for packaging, seals, loading, receiving, loggers and contract controls.	Closed claim file, recovery reconciliation, root-cause/CAPA record and revised SOP.	Close only after deadlines, evidence, salvage, releases, subrogation and accounting are reconciled.

CONTROL MATRIX BY DISCOVERY LOCATION

Location/situation	Mandatory checks	Witnesses/notifications	Do not
CY/terminal – FCL container	Seal, EIR, container exterior, doors before opening, stow position, roof/walls/floor and opening video.	Carrier/forwarder, terminal, trucker, consignee, surveyor and authority where required.	Move the unit away or open a discrepant seal without creating the required record.
CFS – LCL cargo	Marks, HBL–MBL mapping, stripping tally, devanning photos and over/short/damage report.	CFS, consolidator/NVOCC, consignee and surveyor.	Receive only by total package count without house-shipment and marks reconciliation.
Air cargo terminal	HAWB/MAWB, cargo damage/discrepancy report, ULD, scans/weight and pre-truck-out photos.	Airline/ground handler, forwarder, consignee and insurer.	Truck cargo out before visible damage is entered in the terminal record.
Warehouse receiving/road delivery	POD, seal, truck body/tarpaulin, cargo-on-vehicle photos, count/weight, CCTV and arrival/departure time.	Trucker, warehouse, consignee and forwarder.	Unload everything and mix sound and suspect cargo before tally.
Cold store/reefer	Set point, raw logger file, plug/unplug and door-open times, product temperature and quarantine decision.	Carrier/terminal, QA, cold-chain specialist, surveyor and insurer.	Rely only on the display temperature or reset a logger before saving raw data.
Leakage/DG or unsafe cargo	Labels/UN number, SDS, affected zone, PPE, emergency response and authority/specialist instructions.	Safety team, terminal/warehouse, emergency services, carrier and competent authority.	Touch, smell or open the package, or delay emergency action merely to preserve claim evidence.

RISKS AND COMMON FAILURES

Common failure	Impact	Control
Signing a clean POD before photos	May evidence apparently sound and complete delivery.	Train receiving teams to enter precise reservations before vehicle departure.
Moving or cleaning too early	Destroys stow position, water source, impact point and chain of custody.	Move only for safety/mitigation and record before–during–after.
Notifying only the forwarder	Notice may not reach contractual carrier, warehouse liable party or insurer.	Use shipment notification matrix and obtain acknowledgement.
Waiting for survey report before notice	Preliminary deadlines may expire while cause remains unknown.	Notify immediately and quantify later.
Discarding cartons, pallets, seal or damaged goods	Removes evidence and inspection opportunity.	Apply evidence hold until written disposal authority.
Selling salvage or repairing all cargo unilaterally	Changes the loss amount and recovery position.	Obtain written guidance, quotations and salvage records.
Treating Incoterms as the liability rule	Confuses sale risk with carrier/insurer liability.	Run sale, carriage, service and insurance analyses separately.
Using one deadline for every mode	Sea, air, road, warehouse and insurance claims have different notices/time bars.	Create a deadline register from each controlling document and act to the shortest preliminary deadline.

LEGAL FRAMEWORK AND REFERENCE SOURCES

Official/authoritative source	Use	Application note
IMO/ILO/UNECE CTU Code	Global practice framework for receiving, packing, opening and handling CTUs.	Non-mandatory code; revision work is under way.
CTU Code – General precautions	Exterior, seal, tampering and pre-opening hazard checks.	Especially relevant to FCL receipt at a port or warehouse.
CTU Code – Unpacking a CTU	Documentation/notification of damage during unloading and response to leaking DG packages.	Safety, isolation and SDS take priority over claim scene preservation.
IATA Cargo Claims & Loss Prevention Handbook 2026	Specialist air-cargo claims and loss-prevention reference.	Review AWB, airline conditions and applicable convention.
ICAO – Air Cargo and Montreal Convention 1999	International air-cargo liability framework where MC99 applies.	Confirm route, state parties and governing regime.
IUA – Institute Cargo Clauses	Reference wording on cover, exclusions, mitigation, salvage and recovery rights.	Actual policy, certificate and endorsements control.
Vietnam Maritime Code 2015	Vietnamese framework for carriage of goods by sea.	Read with the transport document and governing law/convention.
Consolidated Insurance Business Law 31/VBHN-VPQH (2026)	Current Vietnamese insurance-contract framework.	The English description is operational only, not an official legal translation.

CTU Code Incoterms® 2020

FREQUENTLY ASKED QUESTIONS

Should the whole shipment be rejected when only a few packages are damaged?

Not automatically. First reserve rights, segregate and determine scope. Rejection depends on safety, contract, cargo control and reasonable mitigation.

Can unloading continue when the port or warehouse needs the position cleared?

Yes, under a controlled method when required for safety or to prevent additional cost/loss, provided the original condition is fully recorded and every movement is logged.

What makes a POD reservation useful?

State facts: package count, marks, damage type, seal, unexamined scope and joint-survey request. Avoid vague language such as “cargo problem”.

Does every loss require an independent survey?

No. Value, severity, commodity, policy and carrier/insurer requirements control. High-value, disputed-cause, cold-chain, shortage or dangerous-goods cases should be considered early.

Is notifying the forwarder enough?

Not necessarily. Identify the contractual carrier, port/warehouse party, seller and insurer/broker; send parallel notices and retain acknowledgements.

May wet or broken packaging be discarded to clear the warehouse?

Only after adequate recording and inspection opportunity or written approval, unless immediate disposal is required for safety, hygiene or authority directions.

Does an intact seal rule out a shortage?

No. Shortage can pre-date sealing, arise from packing/tally error or occur inside a package; reconcile weight, scans, CCTV and packing records.

APPLICATION NOTE: The minute/hour points are proposed internal response SLAs intended to prevent evidence loss; they are not legal notice periods or time bars. Deadlines, liability, survey rights and compensation depend on the B/L/AWB, carriage and warehouse contracts, sale contract, insurance policy, route and applicable law or convention. Dangerous goods, food, pharmaceuticals and temperature-sensitive cargo require competent safety and quality decisions.

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