Sea cargo claims in the UAE: documents and first steps

1.Start with the route and the contracting parties

Cargo arriving damaged, short or late does not, by itself, establish who is responsible. The seller, freight forwarder, contractual carrier and actual carrier may have different obligations. Federal Decree-Law No. 43 of 2023 concerning the Maritime Law provides an important UAE framework, but the route, contracts and applicable rules still need review. Record who booked the shipment, issued the transport documents and delivered the goods.

2.Read the complete bill of lading

The bill of lading is important evidence of receipt of the goods and the carriage terms. Review its reverse-side conditions and documents incorporated by reference, alongside the front page. Identify the cargo description, package count, weight, carrier and person entitled to receive the goods. Where a charterparty is involved, check its relationship with the bill of lading. Review the sale contract separately to establish who suffered the loss and is entitled to claim.

3.Preserve evidence and check each deadline

Record visible damage or shortages on delivery and retain photographs, seal details and relevant temperature records. A survey may be needed to establish the cargo’s condition and the possible cause of damage. The Maritime Law distinguishes reservations for apparent damage from notification of concealed damage. Written notice and the deadline for bringing proceedings are separate issues; delay claims also need their own assessment. Do not assume that correspondence with the carrier or settlement discussions, by themselves, protect a legal deadline.

4.Separate carrier liability from insurance cover

Cargo insurance does not mean every loss is covered, and a carrier’s liability does not necessarily equal the full invoice value. Check the policy wording, insured risk, exclusions, deductible and notification requirements. Liability limits and their exceptions may also affect recovery from the carrier. Keep records of reasonable steps taken to prevent further damage, and consider the effect on the insurer’s rights before signing a settlement or releasing a claim against the carrier.

5.Prepare a file for legal review

A legal review can then identify the appropriate parties, applicable terms and action needed to preserve the claim.

Put together a clear set of records containing:

• The complete bill of lading, booking confirmation and carriage or charter agreement;
• The sale contract, invoice, packing list and payment evidence;
• Delivery receipts, photographs, survey findings and a chronology of key dates;
• The insurance policy, claim notices and correspondence with the carrier and insurer.