Breakage in foreign trade typically refers to physical damage to goods during transportation, loading/unloading, or storage, such as cracking, shattering, or deformation. It is one of the insured risks under cargo transportation insurance, often listed alongside TPND (Theft, Pilferage and Non-Delivery) and Rain Fresh Water Damage. Usage scenarios include marine, air, and land cargo insurance clauses, quality objection clauses in sales contracts, and carrier liability determination. Notes: 1) Breakage differs from 'Shortage'—the former emphasizes physical damage, the latter emphasizes quantity shortage; 2) It differs from 'Leakage'—leakage mainly refers to liquid goods escaping from containers, while breakage can cover both solid and liquid goods; 3) When insuring, it is necessary to clarify whether breakage falls under 'All Risks' or requires additional coverage such as 'Breakage Risk'. In practice, the consignee should inspect immediately upon taking delivery and obtain a survey report, otherwise claims may be affected.
📝 Examples
1. Contract clause: The seller shall ensure that the packaging of the goods is sufficient to prevent breakage during transportation. If breakage occurs due to improper packaging, the buyer has the right to reject the goods and claim compensation. (Note: Clarifies liability for breakage and the right to claim.) 2. Insurance claim: About 15% breakage was found in this shipment of glassware upon unloading, and the consignee has filed a breakage risk claim with the insurance company based on the commodity inspection certificate. (Note: Demonstrates the actual claim process for breakage risk.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner