Cargo Damage

Cargo Damage refers to substantial damage such as deformation, rupture, or damage to parts of goods caused by physical external forces (e.g., collision, extrusion, dropping, vibration) or environmental factors (e.g., moisture, high temperature, rust) during international cargo transportation, loading/unloading, and storage. This term commonly appears in sales contracts, letters of credit, insurance policies, bills of lading, and inspection reports to define liability attribution and claim basis. Usage scenarios include: the buyer discovers damage upon receipt and claims against the carrier, insurance company, or seller; the seller insures 'All Risks' or 'Damage Risk' before shipment; the carrier defends based on exemption clauses such as the Hague Rules. Notes: Distinguish 'Cargo Damage' from 'Total Loss', which means the goods are completely destroyed or irrecoverable; different from 'Shortage', as damage emphasizes physical form damage rather than quantity shortage; different from 'Deterioration', which is mostly caused by the inherent characteristics of the goods or time factors. In practice, photos should be taken immediately, notarized inspection conducted, and clean bill of lading remarks retained to avoid losing the right to claim.