A loaded container sits in a yard for eleven days waiting for a receiving appointment. On day twelve the consignee finds water damage on the bottom two rows. Who pays?
The answer depends on documents most shippers have never read: the yard’s terms and conditions, the interchange receipt, and the cargo insurance policy. It is worth understanding before you need it rather than after.
Storage is a bailment, not insurance
When you leave property with someone who agrees to hold it and return it, the law generally treats that as a bailment. The party holding it owes a duty of reasonable care – not a guarantee.
That distinction is the whole issue. A yard that exercises reasonable care and still suffers a loss from a cause outside its control is generally not liable for the value of your cargo. A yard that leaves gates open, stacks containers improperly, or ignores a known drainage problem has not exercised reasonable care and its position is much weaker.
What “reasonable care” means in practice is fact-specific, and it is one reason the physical characteristics of a yard matter as much as the rate.
What the yard’s terms and conditions usually say
Most storage and warehouse terms include some version of these provisions. Read yours – they are typically posted or referenced on the rate confirmation.
- A liability cap. Often stated per package, per container, or per unit of weight, and usually far below the value of a full container of goods.
- Exclusions. Acts of God, civil commotion, inherent vice of the goods, and losses caused by improper packing or loading by the shipper.
- Notice and claim deadlines. Frequently short – a matter of days after delivery or discovery. Missing the deadline can end the claim regardless of merit.
- A declared value option. Many operators will accept a higher liability limit for an additional charge if you declare value in advance and in writing.
The practical conclusion for most cargo owners: the yard’s liability limit is a backstop, not a substitute for cargo insurance.
Cargo insurance is the actual answer
If your goods are worth protecting, insure them. A marine cargo policy that covers the full door-to-door journey – including intermediate storage – is the cleanest structure, because the coverage does not lapse when the container changes hands.
Two things to check on your policy:
- Is storage covered, and for how long? Many policies cover storage in transit for a limited number of days after discharge. Storage beyond that window may fall outside coverage unless extended.
- Does the policy cover the container or only the cargo? The ocean container is the shipping line’s asset and you are responsible for returning it in good condition. Damage to the box itself is a separate exposure.
Our post on cargo insurance for container drayage covers coverage structures in more depth.
The container is still the steamship line’s problem – and yours
A point that catches people: while your loaded container sits in a third-party yard, the ocean carrier’s per diem clock is still running. Storage does not pause it. The yard is not a party to your equipment interchange agreement and has no obligation to the steamship line on your behalf.
If the box is damaged in the yard, the shipping line will look to whoever signed the interchange – typically the motor carrier that took the container out of the terminal – and that carrier will look to the yard. This chain is why the equipment interchange receipt matters so much. Our explanation of interchange receipts and damage claims covers how to document it.
Questions to ask before you store a loaded container anywhere
- Is the yard fenced, lit, gated and monitored? Ask specifically about after-hours access control and camera coverage, not just whether cameras exist.
- What is the liability limit, and can I declare a higher value? Get the number in writing.
- Is the surface paved and graded? Standing water is the single most common cause of preventable cargo damage in outdoor storage, and it is a South Florida reality from June through November.
- What is the hurricane plan? Empty stacking policy, generator capacity for any powered equipment, and how containers are secured.
- Who has access to my container, and is there a log? Seal integrity should be verifiable in and out.
- Is the operator bonded, and does that matter for my cargo? For in-bond or uncleared cargo it matters a great deal – uncleared goods cannot legally sit just anywhere.
- How fast can I get it out? A yard that needs 48 hours’ notice is not useful when a receiving slot opens tomorrow.
Why a carrier-operated yard changes the picture
When the drayage carrier and the yard are the same company, the chain of custody is shorter. There is one interchange, one party responsible for the container from terminal gate to delivery, and no gap where two vendors point at each other. It does not increase anyone’s liability limit, but it removes the most common practical obstacle to resolving a claim: figuring out where the damage happened.
Our own yard storage operates on that model – a secure site near the port with 24/7 access, handled by the same company doing the drayage. If you are comparing options, it is worth asking any provider whether storage and transport sit under one roof or two.
Frequently asked questions
Does a storage yard insure my cargo?
Generally no. A yard owes a duty of reasonable care and usually carries liability coverage subject to a cap stated in its terms, which is typically well below full cargo value. Protecting the value of the goods is the cargo owner’s responsibility through a marine cargo or inland transit policy.
Does per diem stop while my container is in a storage yard?
No. Per diem is the ocean carrier’s charge for use of their container outside the terminal, and it continues regardless of where the box is parked. The only way to stop it is to unload and return the empty.
How long do I have to file a claim for damage found in storage?
That depends on the operator’s terms, and the windows are often short. Read the notice provision before you store, photograph the container at drop and at pickup, and report any discrepancy immediately rather than after the cargo is unloaded.