Welcome to Insights from the Inside, where we spotlight the experts at EIMC who bring strategy, clarity, and deep technical knowledge to every challenge! In this edition, we turn to James J. Lynch-Burwell, Senior Cargo Claims Adjuster, for a focused discussion on General Cargo Claims Adjusting.
Q: How would you describe the role of a claims adjuster in the context of general cargo?
A: As an adjuster who handles general cargo claims, when you first get a new assignment, it could be anything from frozen fish to electronic equipment. Handling a general cargo claim is like opening a sealed, unmarked box, you don’t know what is inside. The claim could concern anything from clothing, fresh produce, and machinery to almost anything.
Once we know what is in the box, we need to determine what the claim is about. Is it a theft, damage, or something else claim? We review the documents received, confirm the assignment to the client, request additional documents from the claimant, and, if determined to be appropriate, assign a surveyor to contact the claimant to arrange for a survey of the damage.
Once the survey report has been completed, we forward the findings to the client and contact the claimant to determine the next best step forward. Can it be repaired, or should it be replaced or sold for salvage of the damaged cargo? Once all actions have been completed and the final claim determined, the final report is completed and forwarded to the client.
Q: What are some of the most common types of claims you see with general cargo shipments?
A: Considering I’ve done this for over twenty years, I’ve handled claims for saddles, textiles, steel plates, machinery, coffee, and even a few for damaged vehicles. The most common claims I am currently handling are machinery and coffee claims. Sometimes the most complicated claims can be for personal effects.
Q: What factors make investigating and resolving cargo claims especially challenging?
A: There are times, although rare, we receive assignments but not enough information can be obtained to determine the actual cause of the loss. Claims that involve wetting can be the most challenging. If the cargo is shipped within a container, we need to determine how the cargo within the container became wet. Was it condensation, a hole in the roof, did the container sit in water, or was there a gap in the seal of the door? These are some of the variables that have to be considered when dealing with wet cargo.
Q: What best practices can companies adopt to reduce the frequency or severity of general cargo claims?
A: To reduce the frequency or severity of general cargo claims, I would suggest:
- Photos of the cargo should be taken prior to shipping.
- A complete examination of the container prior to loading the cargo.
- A discreet tracking mechanism should be placed with the cargo.
- Always confirm you are dealing with the correct freight forwarder and carrier.
I’ve had several claims where the shipper thought they were working with carrier ABC and were actually dealing with company XYZ, who compromised the website of carrier ABC. All shipments should be confirmed twice, first by telephone call, and second by confirmed email. IDs of the drivers should be verified at the time the cargo is picked up from the shipper, and paperwork reviewed for any discrepancies.
Q: What sets EIMC’s claims adjusting approach apart in the general cargo space?
A: I believe we are more personable when it comes to handling general cargo claims. We take a more hands-on approach to keep the flow of information open. We reach out to the claimant, the insured, and additional parties to obtain all the necessary information to provide a total and complete report to our client. We keep the flow of information open.