Container repair bills can be an unwelcome surprise for importers and exporters. These invoices originate from the shipping company that own the containers used to transport your consignments globally.
Shipping Lines require containers to be inspected for any signs of damage by the depots they contract to receive them once the empty container has been de-hired. Should damage be noted, the Carriers then have scope (within their standard terms and conditions) to charge the previous user of that container for any repair work that’s deemed necessary.
This is problematic for importers and exporters. It can sometimes take carriers weeks or months to raise such invoices, by which time it’s difficult (if not impossible) to recall the condition of a container at time of unpack, or dispute the cause of the damage as being claimed. And the biggest challenge of them all…… the ability to dispute the repair cost itself.
We are seeing this situation arising more and more often in modern times. Fortunately, there are practical steps you can take to avoid such costs impacting your business.
What are container repair bills?
Maintaining safe and seaworthy container equipment is crucial to the safety of the cargo’s packed within. Containers are reused multiple times in their lifespans so keeping them in a seaworthy condition is essential.
Accidental container damage does happen from time to time – and can happen at any stage from loading goods to unloading goods. It’s important that everyone in the supply chain knows to report any container damage immediately.
If your suppliers notice any damage to a container, they should report it PRIOR to packing the goods inside.
If you receive a container at your premise and notice some exterior damage – report it before beginning the unpack.
The carrier should be given the opportunity to inspect for damage before any further action is taken.
Who is responsible for the container repair bill?
As mentioned, when damage occurs, the cost of repairing the equipment will often be passed onto the consignee by the shipping line. It is then the responsibility of the consignee to either pay or dispute the charge.
How do I avoid being charged for damaged containers?
Photos, Photos, Photos!
The best way to protect yourself and avoid repair costs, is to take photos of the container.
Best practice is to have your suppliers do this whenever empty containers are delivered to their facilities for packing, regardless of whether there is any damage.
Equally, warehouse staff on receival should do the same. Taking external pics followed by internal pics once the unpack is completed.
Tip -Ensure the photos are time stamped and that they include a picture of the container number.
By presenting solid evidence to the shipping line when noticed, you will be in a better position to dispute a container repair bill.
Sometimes, there’s no way to avoid paying for the repair if you genuinely damaged the container. However, if you have insurance, this may also be covered under the policy. A matter worth discussing with your cargo insurance broker or underwriters.
We’re here to assist you when these situations occur. so please reach out if you have any questions.
