The Stevedore Damaged the Cargo. The Shipowner Was Not Liable.
Quote from chief_editor on June 13, 2026, 5:30 pmWhen stevedores damage commodity cargo during loading or discharging, the liability question — stevedore, carrier, or terminal — depends on who appointed the stevedore and under what terms.
A bulk cargo of bagged fertilizer — ammonium nitrate — was being discharged from a vessel at a West African port. The stevedore's crane driver dropped a grab approximately 1.2 meters onto a pile of bags already on the quay, rupturing 340 bags and contaminating the fertilizer with quay surface dust and debris. The damaged fertilizer — roughly 23 tonnes — was commercially worthless for agricultural application.
The cargo owner filed a claim against the shipowner, reasoning that the stevedore was working on the vessel's cargo and the shipowner bore responsibility for cargo-handling operations. The shipowner's defense: the stevedores had been appointed and were being paid by the charterer, not by the shipowner. Under the charter terms, cargo handling was the charterer's responsibility. The shipowner had no contractual relationship with the stevedore and bore no liability for the stevedore's negligence.
The cargo owner's claim had been filed against the wrong party. The correct defendant was either the stevedore company directly or the charterer who had appointed the stevedore. But the charterer's contract with the stevedore limited the stevedore's liability to a fraction of the cargo value. The practical recovery was a fraction of the $18,000 loss.
The Appointment of Stevedores Determines the Liability Chain
In bulk commodity shipping, stevedores — the companies that physically load and unload cargo — are appointed either by the shipowner (owner's stevedores) or by the charterer (charterer's stevedores). The appointment determines which party is responsible for the stevedore's performance and bears the liability for their negligence.
Under a voyage charterparty where the charterer has the right to appoint stevedores ("charterer's stevedores"), the charterer is responsible for the stevedore's performance. Cargo damage caused by stevedore negligence is a charterer-versus-stevedore matter. The shipowner is not involved unless the damage was caused by the vessel's equipment failing — crane malfunction, hold structure failure — rather than by the stevedore's operational error.
Cargo owners who file claims against shipowners for stevedore-caused damage frequently discover, after the shipowner establishes they did not appoint the stevedore, that the liability chain runs through the charterer to the stevedore — a chain that is longer, more complex, and often less recoverable than a direct shipowner claim.
Industry estimates for stevedore damage claims in bulk commodity trades suggest that quay-side cargo damage during discharge — bags dropped, cargo contaminated by equipment or quay surface — is among the most common forms of cargo damage at port. The physical nature of bulk and bagged commodity handling creates unavoidable damage risk. The legal question of who bears it depends on who appointed the stevedore.
The Cargo Insurance Path and the Subrogation Chain
For cargo owners who carry cargo insurance (ICC A or equivalent), stevedore damage is covered as a physical loss or damage during the insured transit period. The insurer pays the claim and then pursues subrogation against the liable party — the stevedore or the charterer who appointed them.
The insurer's subrogation recovery depends on the liability chain and the stevedore's insurance and financial capacity. Stevedore companies operating in developing port markets may carry limited insurance and have limited assets. The subrogation recovery may be partial, with the unrecovered portion absorbed by the insurer as a claims cost.
Cargo owners who have cargo insurance for stevedore damage need only file their insurer claim and allow the insurer to manage the subrogation. Cargo owners without insurance, or with coverage that excludes quay operations, face the stevedore/charterer liability chain directly and need legal counsel familiar with maritime cargo claims to pursue recovery in the relevant jurisdiction — which is typically the jurisdiction where the damage occurred, not where the cargo owner is based.
When stevedores damage commodity cargo during loading or discharging, the liability question — stevedore, carrier, or terminal — depends on who appointed the stevedore and under what terms.
A bulk cargo of bagged fertilizer — ammonium nitrate — was being discharged from a vessel at a West African port. The stevedore's crane driver dropped a grab approximately 1.2 meters onto a pile of bags already on the quay, rupturing 340 bags and contaminating the fertilizer with quay surface dust and debris. The damaged fertilizer — roughly 23 tonnes — was commercially worthless for agricultural application.
The cargo owner filed a claim against the shipowner, reasoning that the stevedore was working on the vessel's cargo and the shipowner bore responsibility for cargo-handling operations. The shipowner's defense: the stevedores had been appointed and were being paid by the charterer, not by the shipowner. Under the charter terms, cargo handling was the charterer's responsibility. The shipowner had no contractual relationship with the stevedore and bore no liability for the stevedore's negligence.
The cargo owner's claim had been filed against the wrong party. The correct defendant was either the stevedore company directly or the charterer who had appointed the stevedore. But the charterer's contract with the stevedore limited the stevedore's liability to a fraction of the cargo value. The practical recovery was a fraction of the $18,000 loss.
The Appointment of Stevedores Determines the Liability Chain
In bulk commodity shipping, stevedores — the companies that physically load and unload cargo — are appointed either by the shipowner (owner's stevedores) or by the charterer (charterer's stevedores). The appointment determines which party is responsible for the stevedore's performance and bears the liability for their negligence.
Under a voyage charterparty where the charterer has the right to appoint stevedores ("charterer's stevedores"), the charterer is responsible for the stevedore's performance. Cargo damage caused by stevedore negligence is a charterer-versus-stevedore matter. The shipowner is not involved unless the damage was caused by the vessel's equipment failing — crane malfunction, hold structure failure — rather than by the stevedore's operational error.
Cargo owners who file claims against shipowners for stevedore-caused damage frequently discover, after the shipowner establishes they did not appoint the stevedore, that the liability chain runs through the charterer to the stevedore — a chain that is longer, more complex, and often less recoverable than a direct shipowner claim.
Industry estimates for stevedore damage claims in bulk commodity trades suggest that quay-side cargo damage during discharge — bags dropped, cargo contaminated by equipment or quay surface — is among the most common forms of cargo damage at port. The physical nature of bulk and bagged commodity handling creates unavoidable damage risk. The legal question of who bears it depends on who appointed the stevedore.
The Cargo Insurance Path and the Subrogation Chain
For cargo owners who carry cargo insurance (ICC A or equivalent), stevedore damage is covered as a physical loss or damage during the insured transit period. The insurer pays the claim and then pursues subrogation against the liable party — the stevedore or the charterer who appointed them.
The insurer's subrogation recovery depends on the liability chain and the stevedore's insurance and financial capacity. Stevedore companies operating in developing port markets may carry limited insurance and have limited assets. The subrogation recovery may be partial, with the unrecovered portion absorbed by the insurer as a claims cost.
Cargo owners who have cargo insurance for stevedore damage need only file their insurer claim and allow the insurer to manage the subrogation. Cargo owners without insurance, or with coverage that excludes quay operations, face the stevedore/charterer liability chain directly and need legal counsel familiar with maritime cargo claims to pursue recovery in the relevant jurisdiction — which is typically the jurisdiction where the damage occurred, not where the cargo owner is based.