Who is liable for damage inside a sealed container?
Inside a sealed container, damage from loading stays with the shipper side. Damage in transit falls to the carrier who had the container, unless an exclusion applies. "Shipper load and count" (SLC) means the shipper loaded, counted and sealed the container, so no carrier checked what is inside. Taking a container from CN Brampton or CPKC Vaughan? Record what you see before you sign.
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What does shipper load and count mean?
It means the shipper loaded the container, counted the goods and put on the seal. Everyone after that carried a closed container whose contents they never saw.
The clause sits on the ocean bill of lading. You may see it as "shipper's load and count", or with "and seal" added. The ocean line, the railway and the trucker each took over a sealed container. None of them opened it, so none of them can confirm the count.
There is a legal reason for it. Section 43 of the Marine Liability Act gives the Hague-Visby Rules the force of law in Canada. They apply to carriage of goods by water under a bill of lading. Under Article III of the Hague-Visby Rules, an ocean carrier is not bound to show a count it had no reasonable means of checking. A container sealed by the shipper is the plain case.
The clause records who loaded and who counted. It does not, by itself, decide who pays for damage. That turns on what caused it.
- The shipper loaded it
- The shipper counted it
- The shipper sealed it
- No carrier opened it
- No carrier checked the count
Who is responsible for damage inside a sealed container?
The carrier who had the container when the damage happened answers for it, unless an exclusion applies. Damage that comes from the goods themselves, or from the shipper's own act, is excluded.
What we answer for
We are liable for loss of or damage to goods accepted by us or by our agent. The exceptions are set out in the conditions. That is Article 1 of Ontario's uniform conditions.
What a carrier does not answer for
Article 5 lists the exclusions. Two matter here: a defect in the goods, and an act or default of the consignor, owner or consignee.
Loaded by the shipper
Our conditions put it in one line. Where you load, count or seal the trailer or container yourself, that is your load, your count and your seal.
The ocean leg works the same way. The Hague-Visby Rules excuse an ocean carrier for loss from an act or omission of the shipper, or from insufficient packing. On the rail leg, CPKC's intermodal tariff makes the payer of freight responsible for safe loading. For our moves, the conditions of carriage restate Schedule 1 to O. Reg. 643/05, Carriage of Goods, including the limit of a carrier's liability.
What should you check before you sign?
Check the outside and the seal before anyone cuts it. Once the doors open, nobody can show how the container looked when it arrived.
Match the seal
Read the seal number and compare it with your paperwork. Check that the seal is whole.
Walk around it
Look for holes, dents, bent doors and water marks before the doors open.
Write it down
Note any damage or seal problem on the delivery receipt at the time of delivery, before you sign.
Take photos
Photograph the seal, its number, the doors and any damage. Then photograph the load as the doors open.
Keep the evidence
Keep damaged goods and their packaging until the claim is settled. They may need to be inspected.
The seal stays on until it reaches you. CN's Brampton yard rules bar drivers from opening a sealed container inside the terminal. So the first person who can see inside is usually the receiver.
What if the seal is broken or the number is different?
Record it on the paperwork, take photos, and tell your forwarder or ocean line before you unload.
Report it while the container is still as you found it. Unloading first makes the record harder to trust. If our driver is still at your dock, tell the driver and call dispatch at (905) 745-2322.
How do you file a claim with us?
Notify us in writing and send the bill of lading, proof of the goods' value such as the commercial invoice, and photos. We answer in writing.
Send the claim to dispatch@setara.ca. The full procedure, with the notice deadlines, is in section 5 of our conditions of carriage.
The deadlines are short. Ontario's uniform conditions let the written notice carry an estimated amount, so do not wait for the final count.
Claims are handled in writing, acknowledged, and answered in writing. Where our liability is set out is summarized under cargo liability and claims.
- Bill of lading
- Proof of value, such as the commercial invoice
- Photos
- Delivery receipt with your notes
- The seal number you found
Does cargo insurance help?
Insurance is in force: auto liability, cargo, general liability and non-owned chassis cover. We do not publish limits or insurer names; the certificate comes with the carrier packet.
Carrier liability and insurance on your goods are two different things. A carrier's liability has a limit, set out in the conditions of carriage, and a declared value is not cargo insurance. For cover on your own goods, ask your insurance provider.
What does Setara Transport do?
Setara Transport is an Ontario carrier in business since 2006. Our moves run under the conditions of carriage, which restate Ontario's uniform conditions.
- The container number, the ramp and the last free day
- Live unload or drop at your dock
- Damage and seal notes on the delivery receipt
- Any claim in writing, with the bill of lading, proof of the goods' value such as the commercial invoice, and photos
- Book the pickup at the ramp: the CN Brampton gate appointment or the CPKC Vaughan pickup
- Inspect equipment at pickup and note damage before we leave
- A driver does not sign for a count the driver was not allowed to see
- Answer claims in writing
Deciding how the container is delivered? Read live unload or drop.
Sealed container questions.
General information, not legal advice. The conditions of carriage set out the rules that apply to our moves.
What does shipper load and count mean?
Is the trucker liable for damage inside a sealed container?
What should I do if I find damage when I open the container?
How do I file a claim with Setara Transport?
Does Setara Transport carry cargo insurance?
More answers for importers.
Live unload or drop?
Which container delivery fits your dockHow do you choose a drayage carrier?
The questions to ask before you tenderWhat do drayage terms mean?
The words on the paperwork, in plain EnglishCargo liability and claims
Where our liability is set outInvoices, detention and claims
Questions brokers, forwarders and shippers askAll answers
Every answer for importers and forwardersContainer on its way to your dock? Send us the number.
The container number, the ramp, the last free day and your delivery address.