What happens to my cargo if a container falls overboard?

During international ocean freight transportation, accidents can occur that cause containers to fall overboard. Although this is not a common occurrence, it represents a significant risk for companies involved in importing and exporting goods, making it important to be prepared to handle these situations.

When an incident like this occurs, several questions arise: Who is responsible for the cargo? Is the shipping line required to compensate for its value? What happens if the cargo was uninsured? In this article, we answer these questions.

Why do containers fall overboard?

Several factors can cause containers to be lost at sea during a voyage, including:

Extreme weather conditions: Storms, heavy seas, and sudden vessel movements.
Improper stowage: Incorrect weight distribution or improper positioning of containers.
Failure of securing systems: Problems with the equipment used to secure containers during transit.
Incorrectly declared weight: Discrepancies between the actual and declared weight that can compromise the vessel’s stability or proper cargo stowage.
Cargo jettison: In emergency situations, the crew may intentionally throw containers overboard to protect the safety of the vessel.

What happens when a container falls overboard?

The vessel’s master must report lost containers in accordance with applicable maritime reporting procedures and requirements.
After containers fall overboard, vessels generally do not stop to recover them, as maneuvering a large ship in open waters can be difficult and dangerous, and vessels may lack the necessary recovery equipment.
Some containers sink immediately, while others may remain afloat for days or weeks. In some cases, they may even wash ashore.
Losing a container at sea does not mean that its contents no longer have a legal owner. Taking possession of these goods without reporting them to the appropriate authorities may constitute a criminal offense.

If your container falls overboard, it is also important to begin the appropriate documentation and claims process, which generally includes:

Confirm the loss: Request information about the incident from the shipping line or freight forwarder and verify whether your container was affected.
Gather the documentation: Collect the Bill of Lading, commercial invoice, packing list, insurance policy, and any other relevant shipping documents.
Notify the insurance company: Report the incident within the deadlines established in your policy, if coverage is available.
File a claim: Submit a claim for compensation to the insurance company or, when applicable, against the ocean carrier.

What happens if my container was intentionally thrown overboard?

In emergency situations, the crew may decide to throw containers overboard to protect the vessel, safeguard human lives, or prevent further damage to the ship and the remaining cargo.

This practice is known as cargo jettison and, when the applicable requirements are met, it may constitute a case of General Average.

You may also be interested in: General Average: What Is It and How Does It Work?

Who pays if my container falls overboard?

Situation	What Happens?
Insured cargo	The insurance company may compensate for the loss if the incident is covered by the policy, subject to its terms, conditions, and exclusions.
Uninsured cargo	The cargo owner or the party bearing the risk may face the financial loss and must determine whether the carrier can be held liable.
Ocean carrier liability	If the carrier is directly negligent, it may be required to pay compensation, subject to the applicable legal framework and limitations of liability.
General Average	If a container is sacrificed to protect the vessel and the incident qualifies as General Average, its owner may be entitled to compensation. In this case, the recognized losses and expenses are shared among the participating interests, including owners whose cargo arrived undamaged.

How can you protect your cargo during ocean transportation?

Although it is impossible to eliminate all shipping risks, several measures can help minimize their consequences:

Obtain cargo insurance that covers the relevant risks associated with your goods.
Ensure that cargo is properly packed and secured inside the container.
Accurately declare the weight of the cargo.
Review the terms of the contract of carriage and the responsibilities of the parties involved.
Work with a freight forwarder who can facilitate shipment tracking and communication in the event of an incident.

At Remar International, we have more than 25 years of experience in foreign trade. Through our freight forwarding services, we coordinate your international shipments and support you throughout every stage of your logistics operations.