Articles

Cargo Claims and Charter Disputes: A Guide for Cargo Owners

November 5, 2026

By Vitalii Yanchuk — Managing Director, Bond Stone International Law Firm, Kyiv Office

When cargo arrives damaged, short or late, the first days decide much of what can be recovered. Maritime law gives cargo owners real rights, but it also sets short deadlines and caps on liability. A valid claim can be lost simply because nobody gave notice or started proceedings in time. This guide sets out what to do, using the international rules and Kazakhstan's maritime law as examples.

Which rules apply?

Start with the documents. The answer depends on the bill of lading, any charterparty, the governing law and forum clauses, and the ports involved. Many bills of lading apply the Hague or Hague-Visby Rules, either by their own terms or through national law.

National law can differ. Kazakhstan's position is set by the Law on Merchant Shipping of 17 January 2002 No. 284, which also says in Article 2 that a ratified international treaty prevails over it. That matters, because Kazakhstan ratified the Hamburg Rules of 1978 by Law No. 28-IV of 23 April 2008, in force for it since 1 July 2009. They cover carriage between two states where the port of loading or discharge is in a party state or the bill of lading was issued there. They do not cover the charterparty itself, but they do cover a bill of lading held by someone other than the charterer. Ukraine is not a party, and Ukrainian matters are governed by the Merchant Shipping Code of Ukraine. A multimodal carriage can bring in further rules for road or rail legs, such as the CMR Convention, to which both countries are party, so the point where the damage happened matters.

Charterparty or bill of lading?

A cargo owner who chartered the ship has a contract in the charterparty. A receiver who holds only a bill of lading usually does not. Under Article 58 of Kazakhstan's law, relations between the carrier and a recipient who is not party to the charter are determined by the bill of lading. Charter terms bind that recipient only if the bill of lading refers to them.

This matters in practice. A short incorporation clause can bring arbitration terms, time limits or demurrage liability from a charter that the receiver has never seen. Buyers should ask for the charterparty terms before accepting such a bill of lading.

Give notice immediately

Under Article 97 of Kazakhstan's law, the recipient should state any loss, shortage or damage in writing before or at delivery. If it does not, the cargo is presumed to have been received in line with the bill of lading, unless there is evidence to the contrary.

Where the damage could not be found by the usual method of acceptance, notice may be given within three days after delivery. No statement is needed if the recipient and carrier jointly inspected the cargo at delivery. Where the Hamburg Rules apply, written notice is due by the next working day, or within 15 days if the damage is not apparent, and no compensation for delay is payable without notice within 60 days. Otherwise, a missed notice does not always end the claim, but it shifts the burden of proof onto the cargo owner, and that is often decisive.

Proof matters because of the rule in Volcafe Ltd v Compania Sud Americana de Vapores SA [2018] UKSC 61 (5 December 2018). The UK Supreme Court held that under the Hague Rules, where cargo is shipped in apparent good order and discharged damaged, the carrier must prove it took reasonable care.

Time limits

Under the Hague-Visby Rules, the carrier is discharged from liability unless proceedings are started within one year of delivery, or of the date when delivery should have taken place. The parties may agree to extend this period after the cause of action has arisen.

The one-year rule is strict: a claim letter or an exchange of correspondence does not stop time running. A cargo owner should either start proceedings in the correct forum or obtain a written extension from the correct party before the period ends. Check the contract too, since charterparties and arbitration clauses can set different periods.

The UK Supreme Court confirmed how wide the bar is in Fimbank plc v KCH Shipping Co Ltd [2024] UKSC 38 (13 November 2024). A bank began arbitration over coal said to have been delivered without the bills of lading, more than a year after delivery. The court held that the one-year limit in both the Hague and Hague-Visby Rules covers misdelivery after discharge. The Rules applied because the bills incorporated a voyage charter.

Kazakhstan adds a step of its own. Under Article 232 of its law, and Article 706 of the Civil Code for claims against a carrier, a pre-action claim is a mandatory condition of suing. A suit filed without it is returned under Article 152 of the Civil Procedure Code. The claim goes to the carrier that performed the carriage, with the original transport documents, and the carrier generally has one month to answer. The limitation period in the law is one year, and its start date depends on the type of claim (Article 236). Where the Hamburg Rules apply, the period is two years from delivery, and the carrier can extend it in writing (Article 20). In Ukraine the period is also one year, a claim may be made in the first six months, and time stops while the carrier considers it (Articles 386 to 388 of the Code).

Limits on the carrier's liability

Carriers can usually cap what they pay. Under Article 104 of Kazakhstan's law, unless the nature and value of the cargo were declared before loading and entered in the bill of lading, liability cannot exceed 666.67 units of account per package or shipping unit, or two units of account per kilogram of gross weight, whichever is higher. The Hague-Visby Rules, as amended by the 1979 SDR Protocol, use the same figures. Where the Hamburg Rules apply, the cap is higher: 835 units of account per package or 2.5 per kilogram (Article 6).

Liability for delay has its own limit, tied to the freight. Under Article 104 it cannot exceed the freight payable, and under the Hamburg Rules it is two and a half times the freight for the delayed goods, up to the total freight. Article 105 sets out when a carrier loses the right to limit its liability. For high-value cargo, declaring the value or arranging proper cargo insurance is the practical answer. Insurers should be told early, and nothing should be done that could prejudice their recovery rights.

Evidence to secure

Surveys should be arranged before the cargo is moved or mixed with other goods. The carrier should be invited to attend, because a joint survey carries much more weight.

Securing the claim

A judgment or award has little value if the defendant has no assets. Cargo claimants often look for security while the ship is within reach. This may be a guarantee or letter of undertaking from the ship's insurer, or arrest of the ship where the local law allows it. These are urgent steps that depend on where the ship is, so local counsel should be contacted at once.

Under Kazakhstan's law, a ship may be arrested for a maritime claim, which includes a claim under a contract of carriage or for loss of or damage to cargo, even if the contract sends the dispute to a foreign court (Articles 222 and 223). In case No. 916/631/23 (29 August 2023), the Supreme Court of Ukraine applied the 1952 Arrest Convention, not the Code's chapter on arrest, to a foreign-flag ship. It upheld the arrest of the Romanian-flag Navitas at Reni over a USD 150,000 collision claim, and her release once the equivalent sum was paid into court.

Common charter disputes

Charterers and owners most often disagree about delay. The usual issues are whether a valid notice of readiness was given, when laytime began, and how much demurrage is due. Others include responsibility for unsafe ports, off-hire periods and damage during loading or discharge.

The answers depend on the exact wording. Kazakhstan's law covers notice of readiness and laytime in Articles 61 and 64, but the charterparty usually decides the point. Under English law, demurrage is usually the owner's only remedy for delay beyond laytime. In K Line Pte Ltd v Priminds Shipping (HK) Co Ltd (The Eternal Bliss) [2021] EWCA Civ 1712 (18 November 2021), the Court of Appeal held that damages on top of demurrage require a separate breach of the charter. Timesheets, statements of facts and port records should be kept and checked as the voyage goes on, not afterwards.

Practical steps

  1. Note the damage at delivery. Put it in writing on the delivery documents.
  2. Send written notice. Use the shortest period that could apply.
  3. Appoint a surveyor. Invite the carrier to a joint survey.
  4. Tell your insurer. Do this before settling or releasing anyone.
  5. Find the right defendant. Check who the carrier really is under the bill of lading.
  6. Diarise the time limit. Send any mandatory pre-action claim first, then start proceedings or get a written extension in good time.
  7. Consider security. Act quickly while the ship is within reach.

Legal basis

Related: Maritime & Shipping · Doing Business Between Ukraine and Kazakhstan · Enforcing Foreign Awards and Judgments in Kazakhstan

This article is general information and not legal advice. To discuss a claim, please contact the firm.