Damage Report – Damage Report
Damage report for a shipping container is an official, detailed document that precisely records all damage that a shipping container incurs during its lifecycle – especially during transport, handling, or storage. This report serves as a key evidential tool for determining liability, initiating insurance claims, and ordering repairs.
Main purpose and elements of the report:
- Objective record: Describes the nature, extent, and exact location of damage according to international standards (IICL, ISO 9897/CEDEX).
- Photodocumentation: Includes time‑ and space‑stamped photographs of the damage and of the whole container.
- Damage coding: Standardised codes are used for description (see below).
- Repair cost estimate: Contains an itemised budget for labour and materials.
- Signatures and validation: Confirmation by an impartial inspector and a representative of the responsible party.
The report forms the basis for dispute resolution, insurance settlement and is often required when a container is handed over or received between parties in the supply chain – carriers, freight forwarders, owners of containers and insurers.
Critical role of the damage report in global trade
In the environment of global trade, where containers are fundamental infrastructure of logistics chains, the damage report has essential significance:
Key functions:
- Determining liability: A container can change owners several times during a single journey. The report objectively establishes when and where the damage occurred and who is responsible (carrier, port, freight forwarder, lessee, owner).
- Basis for insurance settlement: Insurers require a detailed report with photodocumentation and coding according to CEDEX/IICL; without it, claims are often rejected.
- Cargo safety: A damaged container can endanger not only the cargo (e.g., a hole causing water ingress) but also the stability of the stack, safety during transport and subsequent use.
- Efficient communication: Standardised format and coding enable fast and accurate communication across continents and languages, minimising downtime and speeding up repairs.
Structure and content of a professional damage report
A comprehensive damage report must be clear, complete and verifiable. International standards (IICL, ISO 9897 – CEDEX) define the following mandatory sections:
| Report Section | Content |
|---|---|
| Administrative data | Report number, inspection date, inspector name and certification, inspection location |
| Container identification | Container number (ISO 6346), type/size, manufacturer, year of manufacture, owner, vessel/train/vehicle, B/L number, parties (sender, receiver, carrier, freight forwarder) |
| Detailed damage description | Exact location (coding, see below), type (per CEDEX table), dimensions, severity, narrative description |
| Photodocumentation | Overview shots of all sides, readable identifier, detailed photos of each damage with scale, interior (light penetration, contamination) |
| Repair recommendations & budget | Repair method (e.g., patch welding, panel replacement, coating), itemised list of labour and materials, time estimate |
| Confirmation and signatures | Inspector + representative of the responsible party |
Most common causes and types of container damage
Causes of damage
| Cause | Description / examples |
|---|---|
| Improper handling | Dropping, impact, forklift damage, collisions in port |
| Extreme weather | Storms, shifting on deck, salt water, condensation |
| Poor stacking / securing | Uneven cargo distribution, failure of securing devices |
| Normal wear | Paint abrasion, loss of seal elasticity, floor degradation |
| Transport accidents | Road accidents, derailments, ship collisions |
| Contamination | Chemical spills, biological contamination, odours |
Types of damage and corrective actions (per IICL, CEDEX)
| Damage type | Description and risks | Typical corrective action |
|---|---|---|
| Corrosion and rust | Starts on scratches, welds, loss of coating → holes | Grinding, sandblasting, recoating, replacement |
| Dents, scratches | Local deformation, cosmetic or structural threat | Panel knock‑out, panel replacement |
| Holes, cracks | Loss of watertightness, safety hazard, caused by impact or corrosion | Patch‑welding, sheet metal replacement |
| Door damage | Non‑functional locking, frame deformation, leakage | Adjustment, seal/lock replacement, welding |
| Floor damage | Puncture, delamination, contamination | Deck board replacement, antibacterial coating |
| Seal failure | Water ingress, loss of insulation | Seal replacement, door adjustment |
Process: From damage discovery to claim resolution
- Damage detection and initial documentation
- Immediately after discovery (driver, warehouse staff, receiver) take photos and notify the carrier or freight forwarder.
- Order inspection
- A qualified inspector (independent, certified) carries out a detailed inspection according to IICL/CEDEX.
- Comprehensive inspection
- Check structural integrity (frame, corner posts, walls, floor).
- Conduct watertightness test (“light test”), assess floor, seals, doors, locks.
- Inspect interior (contamination, odour, light penetration).
- Issue official report
- Summarise all findings, code the damages, provide repair recommendations and budget.
- Use report for insurance claim/payment
- Container owner uses the report for the insurance claim or invoices the responsible party for the loss.
Types of inspections and reports
| Inspection name | Purpose and output |
|---|---|
| On‑hire survey | At lease commencement – document of original condition (protects lessee from paying for pre‑existing damage) |
| Off‑hire survey | At lease return – comparison with on‑hire, basis for repair invoicing |
| CSC inspection | Check compliance with the International Convention for Safe Containers (validity of CSC label) |
| Condition survey | General condition check – e.g., before sale, for fleet management |
Roles of the various parties in the damage process
| Party | Responsibilities and significance |
|---|---|
| Sender/receiver | Ensure proper loading/unloading, perform initial check |
| Carrier (liner) | Responsible for condition during transport, fleet maintenance |
| Freight forwarder | Coordinate process, order inspection, handle claims |
| Terminal operator | Document damage occurring during port handling |
| Inspectors | Independent, certified assessment and report issuance |
| Insurers | Require the report as the basis for claim settlement |
Standardised communication: CEDEX/ISO 9897 – Damage coding
CEDEX (Container Equipment Data Exchange) and ISO 9897 introduce uniform coding for damage description, shortening and clarifying communication.
Code structure
- Location code – e.g., L (left side), R (right side), T (roof)
- Component code – e.g., SP (side panel), DR (door)
- Damage code – e.g., D (dent), H (hole), B (bent), S (scratch), CR (crack), CST (corrosion)
Example entries:
L-SP-D = left side panel, dent
R-DR-H = right door, hole
This system is used worldwide and underpins digital repair‑management platforms and communication between repairers, owners and insurers.
Technology and the future of damage reporting
Modern technology is taking inspection and damage recording to a new level:
- Automatic gates and OCR – Port entry/exit gates capture container numbers and new damage via cameras.
- Drones – Inspect containers stacked high without needing lift equipment.
- IoT sensors – Shock sensors record impacts, location and time, helping pinpoint when and where damage occurred.
- Digital reports and apps – Inspectors use tablets; photos are automatically geo‑tagged and time‑stamped; reports can be shared instantly.
Platform examples: Container xChange, depot‑management systems with CEDEX integration.
Damage report and insurance events
The damage report is a key document for filing an insurance event. Without it, or with an incomplete record, the risk of claim denial is high.
Types of container insurance
- Damage Protection Plan (DPP) – Covers routine repairs up to a specified limit.
- Total Loss Insurance – For total loss situations (e.g., loss overboard, fire).
- Container Damage Insurance – Comprehensive cover for all types of damage.
Each policy requires an official report, detailed photographs and correct CEDEX/IICL coding.
Frequently asked questions (FAQ)
What is the difference between an inspection and an inspection report?
An inspection is the actual inspection of the physical condition of a container. The report is the output – an official document with a detailed description, codes and photo documentation.
Who is responsible for paying for repairs?
It is decided according to the report and contractual relations. If the damage is recorded upon return (off-hire) and not upon receipt (on-hire), the costs are borne by the lessee.
How can the risk of damage be minimized?
Correct and safe loading, cooperation with verified carriers/forwarders and the use of inspection checklists before loading.
What does the IICL standard mean?
Institute of International Container Lessors – the strictest standard of inspection and repairs, a container with IICL certification is suitable for any cargo.
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