Cargo Theft Claim

FORMAL NOTICE OF CARGO THEFT CLAIM

[YOUR COMPANY LETTERHEAD]

[DATE]

TO:

Ocean Carrier: [________________________________]
Address: [________________________________]
Email: [________________________________]
Attn: Claims Department

NVOCC / Freight Forwarder: [________________________________]
Address: [________________________________]
Email: [________________________________]

Terminal Operator(s): [________________________________]
Port(s): [________________________________]
Address: [________________________________]
Email: [________________________________]

Motor Carrier / Drayage Operator: [________________________________]
Address: [________________________________]
Email: [________________________________]

Freight Broker (if applicable): [________________________________]
Address: [________________________________]
Email: [________________________________]

Carbon Copy:
Insurance Broker / Cargo Insurer: [________________________________]
Address: [________________________________]

RE: NOTICE OF CARGO THEFT CLAIM

Bill of Lading / Waybill No.: [________________]
Vessel / Voyage / Tractor No.: [________________]
Shipment Reference: [________________________________]

I. CLAIMANT IDENTIFICATION

Legal Entity Name: [________________________________]

Business Address: [________________________________]

Email: [________________________________]

Authorized Contact Person: [________________]
Title: [________________]
Telephone: [________________]

Cargo Owner: ☐ Yes ☐ No
Consignee: ☐ Yes ☐ No
Insurance Recovery on Behalf of: [________________________________]

II. SHIPMENT PARTICULARS

A. Origin & Destination

Port/City of Origin: [________________________________]
Port/City of Destination: [________________________________]
Country of Origin: [________________]
Country of Destination: [________________]

B. Transport Mode(s)

C. Shipment Documentation

Bill of Lading Number: [________________]
Waybill Number (Inland): [________________]
Vessel Name: [________________]
Voyage Number: [________________]
Date of Loading/Tender: [__/__/____]
Expected Date of Delivery: [__/__/____]
Actual Date of Delivery/Discovery: [__/__/____]

D. Container / Conveyance Details

Container Number(s): [________________________________]
Seal Number(s): [________________]
Seal Condition on Discovery: ☐ Intact ☐ Broken ☐ Missing ☐ Unknown

Tractor Number (if road): [________________]
Trailer Number (if road): [________________]
Rail Car Number (if rail): [________________]

E. Cargo Description

Commodity Description: [________________________________]

Quantity Shipped: [________________] [Units: ☐ Pieces ☐ Kg ☐ Pallets ☐ Other: ________]

Declared Value (Invoice Value): USD [________________]
Currency If Not USD: [________________]
Freight Charges: USD [________________]
Insurance Premium (if separate): USD [________________]

SKU / Part Numbers (if applicable):

• [________________]
• [________________]
• [________________]

Total Weight: [________________] kg
Gross Weight vs. Net Weight Discrepancy: [________________________________]

III. FACTS OF THEFT

A. Discovery of Shortage

Date & Time Discovered: [__/__/____] at [____:____] [AM/PM]

Discovered by: [________________________________]
Title/Role: [________________]

Location Where Discovered:

• ☐ Port Terminal (Name: [________________])
• ☐ Warehouse / Distribution Center (Name: [________________])
• ☐ In Transit on Road (Location: [________________________________])
• ☐ Final Consignee Premises (Address: [________________________________])
• ☐ Other: [________________________________]

Description of Discovery:

[________________________________________________________________________]

[________________________________________________________________________]

B. Last Known Control & Seal Integrity

Last Known Point of Control by Claimant/Shipper: [________________________________]
Date/Time: [__/__/____] at [____:____]
Condition at That Time: [________________________________]

Seal Integrity Upon Receipt:

• ☐ Seal Intact – Contents Complete
• ☐ Seal Broken – Partial Shortage (Qty: [________________])
• ☐ Seal Missing – Full Shortage
• ☐ Seal Tampered – Evidence: [________________________________]
• ☐ Container Damaged – Entry Point: [________________________________]

Photographs/Video Evidence Attached: ☐ Yes ☐ No

Number of Images: [____]
Dates of Images: [__/__/____] through [__/__/____]

C. Law Enforcement Notification

Police Report Filed: ☐ Yes ☐ No

Police Report Number: [________________]
Jurisdiction: [________________________________]
Date Filed: [__/__/____]
Investigating Officer: [________________]
Officer Contact: [________________]

FBI Notification (for thefts >$100,000): ☐ Yes ☐ No
FBI Case Number (if assigned): [________________]
FBI Field Office: [________________________________]

CargoNet Submission: ☐ Yes ☐ No
CargoNet Claim Number: [________________]
Date Submitted: [__/__/____]

D. Security & Documentation Preservation

Security Camera Footage:

• ☐ Requested from Terminal Operator
• ☐ Requested from Motor Carrier
• ☐ Requested from Warehouse Operator
• ☐ Not Available / Disabled During Period

Requested From: [________________________________]
Date of Request: [__/__/____]
Response Status: ☐ Pending ☐ Received ☐ Denied

Chain of Custody Documentation:

• ☐ POD (Proof of Delivery) Attached
• ☐ Gate Receipts Attached
• ☐ Tally Sheets Attached
• ☐ Weight Tickets Attached
• ☐ Inspection Reports Attached

IV. SHIPPING DOCUMENTS ATTACHED

V. QUANTUM CALCULATION

A. Valuation Method

Valuation Basis:

• ☐ CIF (Cost, Insurance, Freight) invoice value
• ☐ CPT (Carriage Paid To) invoice value
• ☐ DDP (Delivery Duty Paid) invoice value
• ☐ Replacement cost / Fair market value
• ☐ Other: [________________________________]

B. Cost Breakdown (USD)

C. Supporting Valuation Evidence

Invoice Date(s): [__/__/____]
Exchange Rate Applied (if foreign currency): [________________] to USD
Date of Exchange Rate Conversion: [__/__/____]

Market Value Documentation Attached:

• ☐ Original Invoice
• ☐ Commodity Price Index (Date: [__/__/____])
• ☐ Replacement Quotes (Number of Quotes: [____])
• ☐ Customs Valuation Form

VI. LEGAL BASIS FOR LIABILITY

A. Ocean Carriage – COGSA / Hague-Visby Rules

Under the Carriage of Goods by Sea Act, 46 U.S.C. § 30701 et seq., the ocean carrier is liable for loss or damage to cargo while in the carrier's care, custody, and control, subject to enumerated exceptions. Cargo theft constitutes loss of goods not covered by the statutory "Q clause" (quartermaster/crew theft exception) unless the theft was perpetrated exclusively by the carrier's own employees acting in the scope of employment.

Applicable Regime:

• ☐ COGSA (U.S. domestic ocean carriage)
• ☐ Hague-Visby Rules (international ocean carriage)
• ☐ Rotterdam Rules (if contracted)

Liability Cap (COGSA per-package): $500 USD unless higher value declared in writing on Bill of Lading. Ad valorem declaration present: ☐ Yes ☐ No

Bill of Lading Contained Declared Value: [$ ________________]
Markup Factor (if ad valorem applies): [________________]

B. Inland Carriage – Carmack Amendment

The Carmack Amendment, 49 U.S.C. § 14706, imposes strict liability on motor carriers for loss or damage to interstate shipments. A carrier is liable for the "actual loss or injury" to cargo under the carrier's receipt, absent valid contractual released-value limitations. Cargo theft constitutes loss squarely within the carrier's liability.

Carmack Claim Elements Present:

• ☐ Shipment tendered in good condition
• ☐ Cargo received by consignee in damaged or short condition
• ☐ Amount of damages quantifiable
• ☐ Interstate commerce jurisdiction

Declared/Released Value (if less than actual): [$ ________________]
Carrier's Liability Ceiling under Released Value: [$ ________________]

C. Terminal Operator – Bailment & Statutory Duty

Port and terminal operators owe a duty of reasonable care as bailees of cargo in their custody. Additionally, terminal operators' statutory and contractual obligations (including SCOPIC – Special Casualty General Average Procedure – and terminal tariffs) impose affirmative duties to:

• Inspect containers and report discrepancies within contractual time frames
• Maintain security and prevent unauthorized access
• Provide surveillance of cargo areas
• Maintain audit trails of all in/out movements

Terminal Operator Named: [________________________________]
Terminal Tariff Reference: [________________________________]
SCOPIC or Similar Protocol Applicable: ☐ Yes ☐ No

D. Freight Broker / NVOCC Duty

Where a freight broker or Non-Vessel Operating Common Carrier (NVOCC) arranged the carriage, they bear duties as intermediaries including:

• Selection of competent and reputable carriers
• Proper transfer of liability risk to underlying carriers
• Fiduciary duty to disclose carrier financial conditions and claims histories
• Coordination of insurance coverage

NVOCC / Broker Duty Breaches:

• ☐ Failed to select adequate carrier
• ☐ Failed to arrange adequate insurance
• ☐ Failed to provide adequate instructions on cargo security
• ☐ Insufficient coordination with downstream handlers

VII. ANTICIPATED DEFENSES & COUNTERARGUMENTS

A. COGSA Section 1304 Statutory Exceptions (Ocean Carriage)

The ocean carrier may assert statutory defenses under 46 U.S.C. § 1304, including:

• ☐ "Q Clause" (Theft by Crew): Carrier argues only the carrier's own servants/employees stole cargo. Claimant's Response: [________________________________]
• ☐ Act of War/Public Enemy: Not applicable to commercial theft.
• ☐ Act of God / Force Majeure: Does not excuse theft.
• ☐ Deviation Claim: Carrier claims unauthorized diversion of vessel increased theft risk. Claimant's Response: [________________________________]
• ☐ Shipper's Negligence: Cargo was inadequately packed or sealed. Claimant's Response: [________________________________]

B. Carmack Exceptions (Inland Carriage)

The Carmack Amendment permits exceptions only for loss arising from:

• ☐ Act of God: Not applicable.
• ☐ Public Enemy / War: Not applicable.
• ☐ Shipper's Act or Negligence: (e.g., improper packaging). Claimant's Response: [________________________________]
• ☐ Released-Value Clause: Shipper agreed to reduced liability. Shipper's Response: ☐ No such agreement ☐ Clause is unconscionable ☐ Carrier breached duty despite clause

C. Criminal/Third-Party Actor Defense

Carrier asserts the theft was perpetrated exclusively by external criminal actors with no carrier negligence.

Claimant's Counterargument:

• ☐ Carrier failed to provide adequate security / surveillance
• ☐ Carrier negligently failed to inspect seals / containers
• ☐ Cargo left unattended in unsecured area
• ☐ Carrier's employees negligently facilitated access
• ☐ Carrier's security procedures were below industry standard

VIII. AD VALOREM DECLARATION & VALUE EVIDENCE

Was cargo value declared in writing on Bill of Lading? ☐ Yes ☐ No
Declaration Language (copy exact text from B/L):

[________________________________________________________________________]

Amount Declared: [$ ________________]
Date Declared: [__/__/____]

Shipper's Declaration of Higher Value (separate from B/L):
☐ Yes ☐ No

Form Submitted: ☐ Shippers Declaration of Value (CBP 3643) ☐ Carrier's Shipper's Letter of Instruction ☐ Other: [________________]

Date Submitted to Carrier: [__/__/____]
Carrier's Acknowledgment: ☐ Accepted ☐ Rejected ☐ Silent

If Rejected, Basis: [________________________________]

Insurance Policy Limits: [$ ________________]
Insurance Policy Number: [________________]

IX. NOTICE & COMPLIANCE WITH TIME BARS

A. COGSA 3-Day Rule (Ocean Carriage)

Under 46 U.S.C. § 30701, claimant must provide written notice to the carrier within 3 days of delivery (apparent loss) or 9 days (non-apparent loss) or lose the right to sue for loss/damage not apparent on face of delivery.

Theft Apparent or Concealed: ☐ Apparent ☐ Non-Apparent

Notice of Loss Sent to Ocean Carrier: ☐ Yes ☐ No
Date Notice Sent: [__/__/____]
Method: ☐ Email ☐ Certified Mail ☐ Hand Delivery
Recipient: [________________________________]

Timely Compliance: ☐ Yes (within 3/9 days) ☐ No – Days Elapsed: [____]
Claimant's Justification for Late Notice (if any): [________________________________]

B. COGSA 1-Year Statute of Limitations

Claimant must commence legal action within 1 year of delivery or the bill of lading date (whichever is later) or the claim is barred. 46 U.S.C. § 30701(a)(5).

1-Year Deadline Date: [__/__/____]

Days Remaining for Litigation: [____]

C. Carmack 9-Month Filing Requirement (Inland)

Under 49 U.S.C. § 14706(e)(1), shipper must file written claim within 9 months of delivery or lose the right to sue.

Carmack 9-Month Deadline: [__/__/____]

Date This Claim Submitted: [__/__/____]
Timely Compliance: ☐ Yes ☐ No

Carmack 2-Year Litigation Deadline (from denial of claim): [__/__/____]

D. Bill of Lading Time Bars

B/L Terms & Conditions – Time Bar Provision:

[________________________________________________________________________]

Carrier's Custom Claim Period: [____] days / months
Deadline for Claim: [__/__/____]

Compliance Status: ☐ Within deadline ☐ Approaching deadline ☐ Expired

X. CRIMINAL COORDINATION & LAW ENFORCEMENT NOTIFICATION

A. Police Report

Formal Report Filed: ☐ Yes ☐ No
Police Department: [________________________________]
Report Number: [________________]
Date Reported: [__/__/____]
Investigating Officer: [________________]
Officer Phone: [________________]

Report Status: ☐ Open Investigation ☐ Under Investigation ☐ Closed ☐ Referred to DA

B. FBI Cargo Task Force (for thefts >$100,000)

Cargo Theft Task Force Notification: ☐ Yes ☐ No

FBI Field Office: [________________________________]
Contact Agent: [________________]
Phone: [________________]
Case Number (if assigned): [________________]

Theft Classification: ☐ Class 1 (≥$100K) ☐ Class 2 ($50K–$99K) ☐ Class 3 (<$50K)

C. Industry Intelligence – CargoNet

CargoNet Member Submission: ☐ Yes ☐ No

Submission Date: [__/__/____]
ClaimSearch Claim Number: [________________]
Incident Category: ☐ En Route Theft ☐ Terminal Theft ☐ Warehouse Theft ☐ Drayage Theft

CargoNet Report: [Available at https://www.cargonet.com/]

D. Suspected Criminal Intelligence

Suspected Perpetrator(s):

• ☐ Organized Crime Ring (describe connection): [________________________________]
• ☐ Inside Job / Carrier Employee: [________________________________]
• ☐ Terminal Employee: [________________________________]
• ☐ Independent Thieves / Dockworkers: [________________________________]
• ☐ Unknown / Under Investigation

Related Thefts at Facility:
☐ Yes – Other cases: [________________________________]
☐ No

Pattern Suspected: ☐ Yes ☐ No (Describe): [________________________________]

XI. DEMAND FOR PAYMENT & RESERVATION OF RIGHTS

A. Total Claim Amount

Total Amount Demanded: [$ ________________] USD

Breakdown:

• Cargo Value: [$ ________________]
• Freight: [$ ________________]
• Insurance: [$ ________________]
• Handling/Port Fees: [$ ________________]
• Drayage: [$ ________________]
• Other: [$ ________________]

Less: Recovered Salvage: -[$ ________________]
NET DEMAND: [$ ________________]

B. Payment Terms & Response Deadline

Claimant demands full payment of the above amount within 30 calendar days of receipt of this notice, together with interest at the statutory rate ([____]% or applicable rate per [Connecticut Maritime Act] or state law) accruing from the date of discovery of the theft.

Payment Due Date: [__/__/____]

Payment Instructions:
Wire to: [________________________________]
Bank: [________________________________]
Account: [________________]
Routing: [________________]

Or send check payable to: [________________________________]

C. Reservation of All Rights

Claimant reserves all rights and remedies under:

• ☐ COGSA, 46 U.S.C. § 30701 et seq.
• ☐ Hague-Visby Rules
• ☐ Carmack Amendment, 49 U.S.C. § 14706
• ☐ Bill of Lading terms and conditions
• ☐ Cargo insurance policy
• ☐ Common law bailment principles
• ☐ Applicable state law (tort, contract, restitution)
• ☐ Federal maritime law

Nothing herein shall be construed as a waiver, limitation, or settlement of any claim, counterclaim, offset, or defense.

D. Preservation Notice & Litigation Warning

Claimant provides this notice to preserve all legal claims and expressly reserves the right to:

1. Pursue administrative remedies (if applicable);
2. File suit in federal or state court within applicable statute of limitations;
3. Name additional defendants (co-carriers, terminal operators, brokers, etc.);
4. Seek consequential damages, punitive damages, and attorney's fees if fraudulent concealment or intentional misconduct is proven;
5. Coordinate with criminal prosecution authorities;
6. Report the incident to industry databases (CargoNet, SIU, etc.) for future shipper protection.

Litigation may be filed in:

• ☐ U.S. District Court (diversity or admiralty jurisdiction)
• ☐ State Superior Court
• ☐ Arbitration (if B/L mandates)
• ☐ Other: [________________________________]

XII. DUTY OF SALVAGE PRESERVATION

Claimant hereby requests that all defendants preserve and produce, within 10 business days, any recovered cargo, partial shipments, or goods salvaged from the theft. All such items shall be inventoried, photographed, and made available for inspection.

Recovered Cargo to Date: ☐ Yes ☐ No – Description: [________________________________]

Anticipated Salvage Value: [$ ________________]

Warehousing / Storage Location: [________________________________]

Insurance Inspection Arranged: ☐ Yes ☐ No – Date: [__/__/____]

XIII. PRIVILEGED COMMUNICATIONS & CONFIDENTIALITY

This letter and attached documents are addressed to legal counsel and claims professionals and are intended to be treated as privileged and confidential attorney-client communications and work product. If received in error, please return immediately to sender and notify claimant's counsel.

Counsel Representing Claimant:

Name: [________________________________]
Firm: [________________________________]
Address: [________________________________]
Phone: [________________]
Email: [________________]

SIGNATURE BLOCK

IN WITNESS WHEREOF, claimant submits this formal notice of cargo theft claim and demand for payment:

[CLAIMANT / COMPANY NAME]

By: ________________________________________________________________________

Print Name: [________________________________]

Title: [________________________________]

Date: [__/__/____]

SOURCES AND REFERENCES

• 46 U.S.C. § 30701 - Carriage of Goods by Sea Act (COGSA)
• 49 U.S.C. § 14706 - Carmack Amendment Liability
• Carriage of Goods by Sea Act - Wikipedia
• The Carriage of Goods by Sea Act (COGSA): Your Ultimate Guide to Ocean Cargo Liability
• Understanding the Importance of the Carriage of Goods by Sea Act
• Carriage of Goods by Sea Act Fundamentals | Blank Rome LLP
• Cooper & Scully, P.C. - A Primer on "Carmack Claims"
• Carmack Amendment Overview
• National Insurance Crime Bureau - Cargo Theft Prevention
• Federal Bureau of Investigation - Cargo Theft
• CargoNet - The Cargo Theft Prevention and Recovery Network
• FBI Cargo Theft Update
• FBI NIBRS Addendum for Cargo Theft Data
• How to Report Cargo Theft to Law Enforcement
• Cargo Theft Reporting - Truckload Carriers Association
• Cargo Theft Trends 2023: FBI Insights
• Terminal Operator Liability Insurance
• Terminal Operators Legal Liability - MIR Insurance Brokers
• Beazley - Ports and Terminals Liability
• Cargo Theft: An Unavoidable Problem Within Your Supply Chain
• Fighting Strategic Cargo Theft: Risk Management and Liability
• Cargo Theft and Misdelivery: Liability and Recovery
• 6 Claim Handling Steps for Cargo Theft Claims