If a shipment arrives damaged, short or not to specification, the first hour matters more than the next three weeks. Photograph everything before anything is moved, note the damage on the delivery receipt before signing, and notify the supplier and the carrier in writing the same day. Claims fail on evidence and timing far more often than on merit.
The uncomfortable truth is that most of the leverage was spent earlier — at inspection, at the balance payment, at loading. What follows is how to recover what can still be recovered.
Establish what kind of problem it is
Who you claim against depends entirely on this, so answer it before doing anything else.
| Problem | Likely responsible | Evidence that decides it |
|---|---|---|
| Wrong product or specification | Supplier | Purchase order, approved sample, specification sheet |
| Manufacturing defect | Supplier | Inspection report, approved sample, photographs |
| Short shipment | Supplier, or carrier if the seal was broken | Packing list, loading report, seal number |
| Transit damage, seal intact | Packing failure (supplier) or handling (carrier) | Loading photographs, packing specification, container condition |
| Transit damage, seal broken or mismatched | Carrier | Seal number on B/L vs seal at arrival |
| Water or condensation damage | Usually packing; sometimes container condition | Empty-container photographs from loading, packing spec |
| Crush damage | Stowage | Loading photographs showing the stack |
Notice how many rows resolve on documents created before the goods left China. A loading report with dated photographs of an empty, sound container is what separates “the packing failed” from “the container leaked” — and those are claims against two different parties.
Related: Container loading supervision: the last checkpoint before your cargo sails
The first hour
- Photograph the container before opening — exterior, doors, and the seal with its number legible.
- Check the seal number against the bill of lading. Record any mismatch immediately; this single fact changes who is liable.
- Photograph the load in place before anything is removed. Stowage evidence disappears the moment you start unloading.
- Photograph damage as found, in context and close up, with something for scale.
- Note damage on the delivery receipt before signing. A clean signed receipt is extremely hard to argue with afterwards.
- Count as you unload and reconcile against the packing list carton by carton.
- Keep damaged goods and packaging. Do not dispose of anything — insurers and suppliers may require inspection.
- Notify in writing the same day — supplier, forwarder, and insurer if cargo insurance is in place.
Step 5 is where most claims are quietly lost. A driver is waiting, the site is busy, someone signs. That signature is a statement that the goods arrived in apparent good order.
Time limits
Notification periods for carrier and insurance claims are short and strictly applied, and they vary by carrier, by insurance policy and by the convention governing the carriage. Assume the window is days, not weeks.
The practical rule: notify everyone in writing on day one, even before you know the full extent. An early notification can be expanded later. A late one is often simply barred, regardless of how good the underlying claim was.
Check your own cargo insurance policy for its specific notification requirement before you ever need it, not after.
This article is general guidance, not legal advice. Claim procedures, time limits and liability rules vary by contract, carrier and jurisdiction. Take advice on a specific claim of any significance.
Building the claim
A claim a supplier can act on, rather than argue with, contains:
- Order reference, invoice number and container number
- The specific line items affected, with quantities
- What was specified — quoting the PO, specification sheet and approved sample reference
- What arrived, with photographs
- The inspection report, if one was carried out
- The loading report and seal record, if held
- Delivery receipt showing the damage notation
- A quantified financial impact — replacement cost, rework cost, programme impact
- A specific remedy requested
Vague complaints produce vague responses. “The tiles are the wrong colour” invites a debate about lighting. “Lines 14 and 15, 380 m², delivered in a shade materially darker than approved sample REF-2214 dated 12 March, photographs attached, replacement required for 380 m²” does not.
Related: Getting samples from Chinese factories before you commit to production
What remedy to ask for
| Remedy | When it fits |
|---|---|
| Replacement shipment | The material is essential and the programme can absorb a second production and shipping cycle |
| Replacement in the next order | An ongoing relationship where the shortfall is not urgent |
| Credit note | You can source locally, or the affected quantity is small |
| Partial refund / discount | The goods are usable but below specification |
| Local rework at supplier cost | The defect is correctable on site cheaper than replacement |
| Insurance claim | Transit damage where cover is in place |
Replacement is the instinctive request and often the worst one commercially. On a live project, a replacement container that arrives eight weeks later may cost more in programme delay than accepting a discount and sourcing locally. Work out the actual cost of each option before deciding what to ask for.
What makes claims recoverable
Almost everything that determines whether a claim succeeds is put in place before shipment:
- A written specification and an approved sample with a reference number — the objective standard the goods are judged against
- A retained counter-sample in your possession
- A pre-shipment inspection report — if the goods passed inspection and arrived wrong, something happened after; if no inspection was done, the supplier will say the goods were fine when they left
- A loading report with photographs and the seal number
- Cargo insurance appropriate to the value and the risk
- A contract that states what happens on non-conformance — who bears rework cost, what the remedy is, what the notification period is
A buyer holding all six has a straightforward conversation. A buyer holding none has a disagreement about memory.
Related: Pre-shipment inspection for construction materials · What is a China quality inspection report and how to read one
Negotiating with the supplier
Keep it factual and documentary. A Chinese supplier facing a well-evidenced claim from a customer they want to keep will usually settle; one facing an angry email with no documents will stall.
Three things help. Put everything in writing rather than on calls. Reference the documents rather than describing them. And separate the commercial relationship from the specific claim — a supplier who believes the relationship continues has an incentive to settle that a supplier being fired does not.
Where a sourcing partner arranged the order, the claim runs through them, which changes the dynamic: they hold the inspection and loading evidence, they have the ongoing relationship with the factory, and they are dealing in Chinese with a party that depends on their repeat business.
Preventing the next one
Every claim points backwards at a control that was missing. No approved sample, no inspection, no loading report, packing left to the factory, balance paid before verification. The claim process is expensive and slow even when it succeeds — the return on fixing the upstream control is considerably better.
That sequence of controls is what JEES Global operates on a project order: specification and sample approval documented before production, inspection before the balance is released, loading supervised and photographed, and a reconciled document pack against the container — so that if something does go wrong, the evidence already exists. It applies across all 19 material categories.
Frequently asked questions
What should I do first when a shipment arrives damaged?
Photograph the container, seal and load before unloading, note the damage on the delivery receipt before signing, keep the damaged goods and packaging, and notify supplier, forwarder and insurer in writing the same day.
Can I refuse the delivery?
It is rarely the right move and can create storage and demurrage costs you then carry. Accept with the damage clearly noted on the receipt instead, which preserves the claim without creating a new problem.
Who is responsible — the supplier or the shipping line?
It depends on where the failure occurred. Seal intact with packing failure points to the supplier; seal broken or mismatched, or handling damage, points to the carrier. The loading report and seal record are what decide it.
How long do I have to make a claim?
Short, and it varies by carrier, policy and jurisdiction. Notify in writing on day one and check your specific policy and bill of lading terms rather than assuming.
Is cargo insurance worth it?
For project-value shipments, generally yes. Note that under CIF the seller’s minimum insurance obligation is limited — if your cargo warrants broader cover, arrange it yourself or specify a higher level.
Get the controls in place first
Send your material list and destination. Inspection, loading supervision and document reconciliation can be arranged before shipment, so the evidence exists before you need it.