Cargo Damage Survey Procedure

A. Actions for the consignee when a shipment is damaged

1. Notify the carrier

1. Give notice of loss or damage. At the discharge port, damage may be apparent on receipt or may only be discovered later:

• Apparent loss or damage: examples include broken or damaged goods and torn packaging. Record the condition jointly with the vessel and port where possible, using a Cargo Outturn Report (COR) or equivalent record. State the date, bill of lading number, affected quantities and general nature of the damage. Seek the master's acknowledgement and notify the carrier as soon as possible within the applicable time limit. If the master does not sign, record that fact and arrange an independent survey of the condition. Preserve evidence before or during delivery and send written notice separately where required.
• Non-apparent loss or damage: where internal damage is discovered or suspected, promptly send written notice or a letter of reservation to the carrier or its authorised agent. A three-day period is a historical reference; the applicable period must be checked against the bill of lading, governing law and insurance requirements.

Note: a failure to give timely notice may affect the evidential position and recovery prospects, but it must not be described as automatically extinguishing every right to claim. For example, Article III(6) of the Hague-Visby Rules treats delivery without the prescribed notice as prima facie evidence of delivery as described in the bill of lading. Notice periods and time limits for bringing proceedings are distinct. Notify the relevant parties immediately and obtain advice for the particular shipment.

• The consignee should also promptly notify the insurer or its appointed agent. Depending on the insurer's arrangements, its local representative may be a survey company.

2. Take reasonable measures to mitigate the loss and prevent further damage.

3. Preserve the insurer's rights of recovery against parties potentially responsible for the cargo loss.

4. Survey the damage and issue a certificate

4. After receiving notification, the insurer may conduct the damage survey itself or appoint a representative. Overseas insurers commonly appoint a local insurer or survey company in Vietnam. The survey certificate should identify the quantity or weight affected, the extent of damage and the assessed cause. Where appropriate, the surveyor can advise on measures to limit further deterioration.

5. Assess the claim under the insurance contract

5. The insurer reviews the survey findings against the insurance contract. Where the loss is covered, it considers the assessed damage and applicable policy terms when determining compensation.

B. Preparation and work sequence for the surveyor

1. Review the documents

Before attending the survey, review the necessary documents to establish:

• Whether the survey request is complete and accurate.
• Whether supporting documents are correct, complete and consistent.
• The reported condition of the packaging and goods.
• The quantity or weight of cargo affected.
• The customer's requested scope.
• Cargo properties relevant to the possible direct cause of damage.
• The agreed survey location, date and time.

2. Make preliminary enquiries

Contact the warehouse, cargo owner, carrier and other relevant parties to establish:

• The mode of transport.
• The condition and reported cause of damage.
• Actions already taken by the warehouse or cargo owner.
• The anticipated work and appropriate specialist equipment.
• Survey report forms.
• A record of events during the survey.
• Weighing records, sampling reports and sample handover forms.
• Sampling tools and sample containers.
• Measuring equipment, a calculator, a camera and other necessary tools.

3. Attend the survey location and take samples as required.

C. Documents that may be relevant to the survey

• Bill of lading.
• Packing list.
• Cargo damage or outturn report relating to discharge from the vessel.
• Report on receipt of cargo from the vessel.
• Sales contract.
• Quality certificate.
• Commercial invoice.
• Insurance contract or policy.
• Open-cover or framework agreement for marine cargo insurance.
• Insurance payment voucher.
• Premium invoice.
• Premium payment notice.
• Notice of loss or damage.
• Site survey report.
• Survey certificate.
• Certificate of cargo quantity and condition.
• Cargo weight survey certificate.
• Sampling record.
• Test results.
• Calculation of the value of damaged cargo, recoverable salvage and additional costs incurred.
• Container unstuffing results.
• Claim for compensation.
• Power of attorney.

Reference: Hague-Visby Rules, Article III(6)