[Claim #1] The Rust War: How to Get Compensated for Damaged Cargo

 


Imagine this: Your shipment of Hot Rolled Steel has finally arrived. You open the container, and you see reddish-brown dust on the coils.

Do you panic and scream "Claim!"?

No. Not yet.


Buyer inspecting rusty steel coils inside a container, preparing for a claim.

💡 The Reality of Sea Transport

Steel is iron. Iron oxidizes. During a 40-day voyage across the ocean, high humidity and temperature changes make Surface Rust inevitable.

If you claim for every spot of light rust, suppliers will think you are an amateur and say:
"This is steel, not gold. If you can't handle rust, don't buy steel."

The real question for a smart buyer is not "Is there rust?" but "Is the rust deep enough to destroy the material?"


1. The Standard: Acceptable vs. Rejectable

You must distinguish between "Cosmetic" issues and "Functional" defects.

Type Appearance Condition Decision
Surface Rust
(Atmospheric)
Light orange/brown dust. Wipes off with a glove. The steel surface underneath is smooth. ACCEPTABLE
(Normal)
Deep Rust
(Pitting / Scaling)
Dark red/black scabs. Rough surface. Even after cleaning, it leaves "craters" (pits). Thickness is reduced. CLAIM TARGET
(Defect)



2. White Rust (The Exception)

Note: For Galvanized Steel (GI), "White Rust" is tricky.

A few white spots are okay. But if the coils are stuck together or the surface has turned black, the zinc protection is damaged by Salt Water.
This is often an insurance issue (Marine Cargo Insurance), not a mill manufacturing issue.


3. Buyer's Action Plan

So, you confirmed it is Deep Pitting corrosion. Now you fight.

🚨 How to Prove It (The Evidence)

  • The "Cleaning Test": Take a photo before cleaning and after cleaning a small spot. Show clearly that the rust left a hole (pit).
  • Don't Process Yet: If you cut or use the material, you technically accept its quality. Keep it as is.
  • Call a Surveyor: If the damage looks like more than 5% of the total value, hire an independent surveyor immediately.

🔬 Pro Tip: The Silver Nitrate Test

Is it Sea Water (Insurance pays) or Rain Water (Mill pays)?

Use Silver Nitrate (AgNO3) solution. drop it on the rust.

  • Turns Milky White: It contains Chloride (Salt). It is Sea Water. → Claim Insurance.
  • No Change: It is Fresh Water (Rain/Condensation). → Claim Mill/Warehouse.

This simple chemistry test can save you thousands of dollars.


Final Thoughts: Be Reasonable

"Don't claim for dust, claim for damage."

Suppliers respect buyers who know the difference. By accepting the unavoidable surface rust but fighting hard against deep corrosion, you build credibility.
When you do raise a claim, they will know it is serious.


📉 Reference:
1. American Galvanizers Association, "Wet Storage Stain (White Rust)".
2. North P&I Club, "Steel Cargo Claims: Pitting vs Surface Rust".


Next Post
👉 [Claim #2] Evidence Strategy: How to Prove Your Claim (Photo & Sampling)