Cargo Leakage

Cargo Leakage refers to the phenomenon in international trade transportation, loading/unloading, or warehousing where, due to packaging damage, poor container sealing, improper handling, or the inherent characteristics of the goods, liquid, gas, or powdered cargo seeps or escapes from its packaging. This term is commonly found in marine, air, and land transport insurance, bill of lading remarks, inspection reports, and claim documents. Usage scenarios include: the carrier making remarks on the bill of lading regarding leaking cargo to avoid liability; the consignee claiming compensation from the insurance company or carrier based on an inspection report; the buyer and seller agreeing on leakage rate and liability allocation in the contract. Notes: Leakage differs from 'Shortage', which emphasizes a shortage in quantity and may be caused by leakage, theft, evaporation, etc.; leakage also differs from 'Damage', which focuses on physical damage to packaging or goods, while leakage is the outflow of contents. In practice, distinguish 'Seepage' from 'Leakage': the former refers to slow oozing, the latter may refer to substantial loss. Additionally, leakage may constitute an 'Inherent Vice', for which the carrier may be exempt from liability, so the scope of coverage should be clearly defined when insuring.