Insurance Company Disputes Million Dollar Shipping Claim

Case Overview

This case involves a shipping company who had the contents of one of its containers stolen from its warehouse. The contents of the container were valued at almost $10 million. The attorney was representing the insurer. The shipping company’s policy required the shipping containers to be locked at all times while in storage. The shipping company claimed that the locks on their shipping containers could be opened if the pins were cut with bolt cutters. It was alleged by the shippers that someone cut this pin and stole items from the container. The insurer denied the claim, contending there was no evidence that the container lock had been tampered with. An expert in shipping customs was sought to address common industry practices for storing containers and to determine whether the shipping container in question had been tampered with.

Questions to the Product Liability expert and their responses

In your experience, how are shipping containers typically secured while in storage?

Typically shipping containers are secured either with either a lock, pin, or seal while in storage. A seal is plastic and doesn't really secure the load but identifies tampering.

About the expert

This expert has over 25 years of experience in the packaging industry. He has an extensive experience in cargo packaging, loading, and shipping. He holds a US Patent for the design of a pallet box and is a member of several professional organizations including the American Society for Quality and the Packaging Consulting Council. He began his career at Gaylord Container Corporation, where he served as the Head Production Supervisor and managed the corrugator, shipping, sheet plant, and maintenance department. He went on to work as a Quality Assurance Manager at Stone Container Corporation, where he worked on the Smurfit-Stone merger, one of the world's largest box manufacturers. In that role, he was directly involved in the packaging, shipping, and loading of boxes. In addition, he served as a corrugated plant manager and general manager of manufacturing at Marfred Industries. Currently, he serves as the president/owner of a paperboard packaging company in Arizona.

E-008549

Specialties:

Product Liability