How to Handle Damaged Goods After Delivery

Your container from China just arrived. You open the doors and see it: crushed cartons, water-stained boxes, and a pallet of electronics that looks like it went through a washing machine. You paid $18,000 for this shipment, and now you're staring at $6,000 worth of unsellable stock. How you handle damaged goods after delivery determines whether you recover that money or eat the loss. This guide walks you through exactly what to do in the first 48 hours, how to file a claim that actually gets paid, and how to prevent this from happening again.

We'll cover inspection, documentation, claims against carriers and suppliers, insurance recovery, and the preventive steps that save you from repeating the cycle. No fluff — just the steps that work for importers in Lagos, Nairobi, Accra, and beyond.

Step 1: Inspect Immediately and Document Everything

The clock starts the moment the container is opened. Most carriers and insurers require you to report visible damage within 24–48 hours of delivery, and hidden damage within 3–5 days. Miss that window and your claim is dead. Do not let the truck leave before you've at least done a visual inspection of the container seals and exterior. If the seal is broken or the container looks damaged, note it on the delivery receipt before signing. That signature is your first piece of evidence.

Once the container is at your warehouse, do a full unpack. Photograph everything: the container interior, each damaged carton, the product inside, and the shipping label. Take wide shots and close-ups. Record a video walkthrough with a timestamp. This isn't paranoia — it's the difference between a $5,000 payout and a $0 payout.

Check the container seal number against the Bill of Lading (B/L) before opening. If it doesn't match, photograph the seal and note it.
Inspect the exterior of the container for dents, holes, or water stains. Photograph any damage.
Open the container and do a quick visual scan. If you see obvious damage, stop and document before unloading.
Unpack and inspect every carton. Separate damaged from undamaged. Count the damaged units.
Photograph each damaged item with a ruler or reference object for scale. Capture the shipping label and carton markings.
Record a video walkthrough of the entire process, narrating what you see. Save it with a date stamp.

What to Photograph (Checklist)

Container seal and door before opening
Exterior container damage (dents, rust, water marks)
Overall cargo load before unloading
Each damaged carton — top, sides, and any labels
Close-up of product damage (cracks, water damage, crushed components)
Shipping label and B/L number visible in at least one photo
The damaged item next to an undamaged one for comparison

Use your phone. Cloud backup immediately. If you're in a port city like Mombasa or Tema, consider hiring a local surveyor for $150–$300 to produce an independent report. That report carries weight with insurers and carriers.

Step 2: Determine Who Is Liable

Damage can happen at the factory, during loading, on the vessel, at the port, or during inland transport. The liable party depends on where the damage occurred and what terms you agreed to. If you bought FOB (Free On Board), your risk starts when the goods are loaded on the vessel in China. If you bought CIF (Cost, Insurance, Freight), the seller arranges insurance but you still need to claim. If you bought DDP (Delivered Duty Paid), the seller is responsible until delivery — but good luck enforcing that without a solid contract.

In practice, most damage claims fall into three buckets: carrier liability, supplier liability, or insurance. Carrier liability is capped by international conventions — often $500–$1,000 per container unless you declared a higher value. Supplier liability applies if the packaging was inadequate or the goods were defective before shipping. Insurance is your best bet if you bought all-risk cargo insurance.

Carrier liability: Limited to $500–$1,000 per container under Hague-Visby rules unless you declared a higher value. File a claim with the shipping line (Maersk, MSC, CMA CGM) within 3 days of delivery.
Supplier liability: If packaging was flimsy or the factory shipped defective goods, you can claim against the supplier. This requires a pre-shipment inspection report or clear evidence of poor packaging.
Insurance: If you bought all-risk cargo insurance (typically 0.3%–0.8% of cargo value), file a claim with your insurer. They will subrogate against the carrier.
Freight forwarder liability: If your forwarder arranged inland transport and damage occurred there, they may be liable. Check your contract.
Port authority liability: Rare, but if damage occurred during port handling, you can file a claim. Expect a slow process.

How to Read Your Bill of Lading for Liability Clues

The B/L is your contract of carriage. Look for the clause that states the carrier's liability limit. It's usually on the back. If it says "$500 per package" and you have 200 packages, your max recovery is $100,000 — but only if you can prove the carrier was at fault. If the B/L says "shipper's load and count," the carrier is not responsible for how the goods were packed. That shifts liability to you or your supplier.

Step 3: File a Claim with the Carrier

If you believe the carrier is liable, file a claim immediately. Most shipping lines require written notice within 3 days for visible damage and 7 days for hidden damage. Miss that and you lose your right to claim. Send a formal letter via email and courier to the carrier's local agent. Include the B/L number, container number, delivery date, description of damage, and your demand amount. Attach your photos, surveyor report, and commercial invoice.

Carriers rarely pay the full claim. They'll offer a settlement — often 30%–50% of your claimed value. You can negotiate, but be prepared to prove your loss. If they deny the claim, you can escalate to the carrier's head office or hire a maritime lawyer. For claims under $5,000, legal fees often exceed recovery, so weigh the cost.

Send written notice to the carrier's local agent within 3 days of delivery. Use email with read receipt and follow up with a courier letter.
Include the B/L number, container number, seal number, delivery date, and a detailed description of damage.
Attach your photo evidence, surveyor report (if any), commercial invoice, and packing list.
State your claim amount clearly. Use the CIF value plus freight and insurance if you're claiming full loss.
Request a written acknowledgment within 7 days. If no response, escalate to the carrier's regional claims department.
If the carrier denies liability, request a written explanation citing the specific clause. Use that to decide your next step.

Timeline and Expectations

Carrier claims take 30–90 days to resolve. You'll likely get a lowball offer first. Don't accept it immediately. Counter with your evidence. If the claim is under $2,000, many carriers will settle quickly to close the file. If it's over $10,000, expect a fight.

Step 4: File a Claim with Your Supplier

If the damage is due to poor packaging or defective goods, go after your supplier. This is common with fragile items like ceramics, glassware, or electronics. Your leverage depends on your relationship and payment terms. If you paid via Alibaba Trade Assurance or used a Letter of Credit, you have more power. If you paid by bank transfer with no inspection, you're in a weaker position.

Start by sending a polite but firm email with photos and a clear demand: replacement, refund, or credit on your next order. Give them 7 days to respond. If they stall, escalate. Threaten to leave negative feedback on Alibaba, report them to the platform, or file a dispute. For orders under $5,000, many suppliers will offer a partial refund to avoid bad reviews. For larger orders, you may need to involve a third-party mediator or your bank.

Document the damage with photos and a written report. Compare the packaging to what was agreed in the contract.
Send a formal claim email to your supplier within 48 hours of delivery. CC your sourcing agent if you used one.
Demand a specific remedy: replacement, refund, or credit. Give a deadline (7 days is standard).
If they refuse, file a dispute on Alibaba Trade Assurance (if you paid through Alibaba) within 30 days of delivery.
For orders paid by L/C, contact your bank about a discrepancy claim. This is complex and may require legal help.
Leave honest feedback on the supplier's Alibaba profile if they don't resolve. This is your strongest leverage for small orders.

Using Alibaba Trade Assurance

Trade Assurance covers orders paid through Alibaba.com. You must file a dispute within 30 days of delivery (or 60 days for some categories). Alibaba will mediate and can force a refund if the supplier is at fault. Keep all communication on the platform. If you paid outside Alibaba, you're on your own.

Step 5: Claim on Cargo Insurance

If you bought all-risk cargo insurance, this is your fastest path to recovery. Premiums run 0.3%–0.8% of cargo value — on a $20,000 shipment, that's $60–$160. File a claim with your insurer as soon as you discover damage. They'll send a surveyor or ask for your documentation. Most insurers pay within 30–60 days for straightforward claims.

Key: your policy likely has a deductible ($200–$500) and requires you to mitigate further loss. That means you must dry out wet goods, repack salvageable items, and dispose of unsalvageable ones properly. Don't just let everything rot. Insurers hate that.

Notify your insurer within 48 hours of discovering damage. Check your policy for the exact deadline.
Submit a claim form with photos, surveyor report, commercial invoice, packing list, B/L, and delivery receipt.
Cooperate with the insurer's surveyor. If they ask for additional evidence, provide it within 7 days.
Mitigate further loss: separate damaged goods, attempt repairs where possible, and document disposal of unsalvageable items.
Negotiate the settlement. Insurers often offer 70%–90% of claimed value. Push back if you have strong evidence.
Receive payment. Most insurers pay via bank transfer within 30 days of agreement.

What If You Didn't Buy Insurance?

Then you're limited to carrier and supplier claims. Carrier liability is capped low, and supplier claims are hit-or-miss. This is why we always recommend all-risk insurance for any shipment over $5,000. The $100–$200 premium is cheap compared to a $10,000 loss.

Step 6: Salvage, Repair, or Resell

Not all damaged goods are a total loss. Sometimes you can repair, repackage, or sell as-is at a discount. This reduces your claim amount (insurers pay based on actual loss), but it also recovers some value. For electronics, a local technician might fix water damage for $20–$50 per unit. For clothing, a good wash and repackage might make it sellable. For food or cosmetics, if the seal is broken, toss it — health risks aren't worth it.

Assess repair cost vs. resale value. If repair is under 30% of resale price, it's usually worth it.
For electronics: check for water damage, corrosion, or cracked screens. A local repair shop can often salvage 50%–70% of units.
For apparel: wash, iron, and repackage. Sell as "minor damage" on local marketplaces at 30%–50% off.
For food/cosmetics: if the seal is broken or there's any sign of contamination, dispose of it. Don't risk customer health.
Document your salvage efforts. Insurers will reduce your payout if you don't mitigate loss.
Consider selling salvage as a lot on Facebook Marketplace or local WhatsApp groups. Even 20% recovery is better than zero.

Common Mistakes to Avoid

Signing the delivery receipt without noting damage. Once you sign clean, you've accepted the goods as delivered in good condition. Always write "subject to inspection" or note visible damage before signing.
Waiting too long to inspect. Carriers require notice within 3 days. Insurers often require 48 hours. If you wait a week, you're likely out of luck.
Not photographing the container seal. If the seal is broken, that's evidence of tampering or carrier fault. Without a photo, it's your word against theirs.
Throwing away damaged goods before the claim is settled. Insurers and carriers may want to inspect. Keep everything until you have a written settlement.
Failing to mitigate further loss. If you let wet goods sit and mold, the insurer can reduce your payout. Dry, separate, and document.
Not reading the B/L liability clause. Many importers assume the carrier is fully liable. In reality, it's capped at $500–$1,000 per container unless you declared a higher value.
Paying the supplier in full before inspection. Always hold back 20%–30% until you've inspected the goods. This is your leverage if damage occurs.

These mistakes happen because importers are busy, trust too much, or don't know the rules. The fix is simple: build a standard operating procedure for every delivery. Inspect, document, claim. Every time.

Conclusion: Next Steps

Handling damaged goods after delivery is a race against the clock. The importers who recover money are the ones who inspect within 48 hours, document everything, and file claims immediately. The ones who lose money wait, hope, and accept the loss.

Inspect your container within 24 hours of delivery. Photograph everything, especially the seal and damaged items.
File claims with the carrier within 3 days, your supplier within 48 hours, and your insurer within 48 hours. Don't wait.
Mitigate further loss: repair, repackage, or salvage what you can. Document your efforts.
Prevent future losses: buy all-risk cargo insurance, do pre-shipment inspections (QIMA, SGS cost $200–$400), and hold back 20%–30% payment until you inspect.

Your next step: create a one-page checklist for every delivery. Include the inspection steps, photo list, and claim deadlines. Print it and tape it to your warehouse wall. When the next container arrives, you'll be ready.