Insurance Company Disputes Million Dollar Shipping Claim

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.

Question(s) For Expert Witness

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

Expert Witness Response E-008549

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. I have dealt with a case that included a significant amount of court activity regarding sealing a load and motor freight requirements.

Expert Bio

This expert has over 25 years of experience in the packaging industry and has an extensive amount of experience in cargo packaging, loading, and shipping. He began his career at a major 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 where he worked on a merger for one of the world's largest box manufacturers. In that role, he was directly involved in the packaging, shipping, and loading of boxes. Additionally, this expert holds a US Patent for the design of a pallet box and also served as the vice-chairman of the American Society for Quality. Currently, he serves as the president of a paperboard packaging company.