Control of damaged goods is the process of identifying, isolating, documenting, inspecting, and deciding what to do with cargo or inventory that has been damaged during transport, handling, storage, or delivery. In logistics, damaged goods may need to be quarantined, photographed, reported, repaired, returned, salvaged, disposed of, or included in an insurance or carrier claim. Proper control helps prevent unsafe or unsellable products from reaching customers and protects inventory accuracy, compliance, and recovery value.
Steps for Controlling Damaged Goods
- Document damage with photographs before moving or unpacking cargo
- Notify the carrier and insurance company promptly
- Do not dispose of or repair damaged goods before a surveyor inspects them
- Obtain a damage survey report from an independent marine surveyor
- Mitigate further loss by protecting undamaged goods or salvaging what can be used
- File the insurance or carrier liability claim within the required timeframe
Related terms: Cargo Insurance, All-Risk Coverage, Concealed Damage Coverage, Bill of Lading (BOL).
