[FAQ] Why Are the Refrigerated Container Cargo Claims Rising?

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In the past two years, the Britannia Club has opened just over 250 claims files for allegedly damaged refrigerated containerized cargo carried on operators’ vessels, with the number of such claims being on the rise recently, reports Safety4sea.

Cargo claims

Cargoes carried in refrigerated containers are many and varied, including meat, vegetables, fruit, live plants, flowers and medicines, all requiring their own bespoke temperature and atmosphere management.

Where there is the loss of the entire contents of a 40’ high cube container, the claim cost can be substantial. Dependent on the nature of the product, the refrigerated container will be assigned an appropriate “set-point” carriage temperature, either frozen or chilled as stipulated by the shipper.

This temperature is to be maintained from loading the container at the shipper’s facility, throughout the voyage until ultimate delivery to the receiver when the container is unloaded.

The other two settings that can be crucial to the successful outturn of certain products carried in refrigerated containers are the humidity and the air exchange rate.

The majority of claims arising, where a consignment is found in an apparent distressed condition upon receipt, are due to temperature abuse. This can occur due to a number of reasons:

  • Cargo stuffed into the refrigerated container whilst at a temperature significantly different from the carriage set-point temperature. Refrigerated containers are not designed to cool cargo to the set-point, with the result that it takes many days for the core of the cargo to be cooled to the required carriage temperature.
  • The temperature of cargo to be stuffed into a refrigerated container should be at or very close to the set-point temperature.
  • Incorrect set-point temperature.
  • Refrigerated container malfunction.
  • Refrigerated container failure.
  • Lack of electrical power, either post stuffing and prior to loading, whilst onboard due to the refrigerated container not being plugged in upon receipt on board, the socket being inadvertently switched off or the plug removed in error during the voyage, whilst in transit ports or while in transit to the receiver at/from the final discharge port.
  • Excessive voyage length, due to port congestion, deviation due to Covid restrictions or other reasons, or vessel breakdown, reducing the usable life of the product upon delivery to receivers, or causing its deterioration prior to delivery.

Read more here.

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Source: Safety4sea