Meaning
Legal defense and insurance exclusion that releases a carrier from liability when cargo is damaged because its protective packaging was inadequate protects transport operators from poor shipper preparation. This claim of insufficiency of packing is raised when goods are damaged because crates or desiccants were too weak. It requires proving the packing failed to meet standard guidelines.
Protective Failure
Packaging design must be engineered to withstand the mechanical and environmental stresses of the entire transit route. When a shipper uses single-wall cardboard boxes for heavy goods or fails to include enough desiccants for a tropical sea voyage, the packaging is likely to fail. The carrier can use the defense of insufficiency of packing to reject claims for the resulting damage.
This rule applies even if the cargo suffered from water or physical impact, provided the carrier operated within normal parameters.
Industry Benchmark
To succeed with this defense, carriers compare the shipper’s packaging methods against established industry standards and best practices. If a shipper fails to follow the recommended guidelines for desiccant placement or load securing, their claim for moisture damage will be denied. This standard of care requires shippers to use packaging that is fit for the specific cargo and route.
Testing and certifying the packaging before shipment is the best way for a shipper to protect against this defense.
Cost Consequence
Using cheap, uncertified packaging to reduce production costs often leads to a total loss of the shipment with no possibility of insurance recovery. When an audit reveals that the packaging was insufficient, the shipper must bear the entire financial loss of the damaged goods. This loss includes both the cost of the ruined products and the disposal fees at the destination port.
Investing in high-quality packing and proper moisture control is always more economical than risking a rejected claim, as it ensures the cargo arrives intact and maintains the relationship with the customer.