IUMI urges steel-cargo stakeholders to trace claims back to the first preventable failure

On 9 September, the International Union of Marine Insurance (IUMI) published a loss-prevention paper calling on insurers and cargo stakeholders to revisit how they analyse steel cargo claims. Its central proposition is practical: rather than stopping at the immediate cause of visible damage, investigations should identify the first preventable failure in the transport chain.

The paper identifies recurrent sources of steel losses: moisture exposure and corrosion, poor stowage or securing, mechanical handling damage, and deficient documentation. IUMI’s point is that the decisive control failure may occur well before sea passage—for example, cargo accepted in unsatisfactory condition, loading undertaken in rain, inadequate protective packing, unsuitable stowage, or incomplete contemporaneous records.

The exposure is material. World Steel Association data puts 2025 global exports of finished and semi-finished steel products at 456.5 million tonnes. Separately, IUMI’s Major Claims Database records 583 cargo claims above USD 250,000 in 2024, with incurred losses of USD 677 million. Those figures are for the broader cargo market, not steel alone, but they underline the value of preventing repeat losses in high-volume commodities.

For claims handling, the paper reinforces the importance of evidence that can establish cargo condition and custody at each transfer point. Useful records include pre-loading condition surveys; dated photographs and video; weather and stoppage logs; mate’s receipts and cargo remarks; tally and damage records; stowage, lashing and segregation plans; hatch-cover, bilge and hold-condition records; and notices of damage issued promptly to the relevant party. Evidence should be preserved in its native form where possible, with clear timing, authorship and chain-of-custody information.

The operational lesson is not that every claim can be prevented by more paperwork. Rather, survey evidence and operational records need to be linked to decisions that can still be changed: whether to accept damaged or wet cargo, suspend loading, improve protection, amend stowage, or record a reservation. Charterers and cargo interests also need declared cargo condition, packing specifications and loading instructions to align with the vessel’s records.

Why this matters: steel damage often becomes contentious because corrosion, wetting and handling marks may be discovered after several custody changes. A disciplined “first preventable failure” review can separate pre-shipment condition issues from loading, carriage and discharge exposures, while making corrective actions more specific. That improves both loss prevention and the quality of the evidential record if a claim follows.