Wet Rice Cargo Claim: How We Settled a THB 373,500 Demand at THB 128,010 with Market Data

A trucking company that holds an inland cargo transit policy with ERGO, placed through Benjamin, was carrying 20 jumbo bags of specialty rice (1,000 kg each, 20 tonnes in total). The load was going from a rice mill in Nakhon Ratchasima to an export food processing plant in Chonburi. On 9 May 2026, the receiving plant found moisture at the bottom of 18 bags, rejected the shipment and sent it back to the mill.

Four days after the incident, the cargo owner claimed full value plus sorting costs, a total of THB 373,500. That was above the policy’s THB 200,000 wetting limit and worked out to about THB 20 per kilogram. If the carrier paid that figure, everything above the limit would come out of its own pocket.

The rice was also a proprietary blend made under a confidentiality agreement with the end buyer, so there was no direct market price to compare against. The carrier also needed to keep a good relationship with the cargo owner, who is a regular customer.

Benjamin’s claims team built the negotiation on data rather than haggling over a number:

1. We gathered reference prices from the Thai Rice Mills Association and the Department of Internal Trade. White rice (5% broken) was about THB 11.80/kg and broken rice about THB 10.70/kg, which put the market range at THB 11 to 13/kg, roughly half the claimed rate.
2. We asked the cargo owner for actual invoices and had the surveyor prepare a salvage valuation.
3. We built a preliminary claim projection for the carrier, so it could see the numbers before going into negotiation.
4. We met the mill and the cargo owner directly. This established that only 3 bags were beyond use and the other 15 could be reprocessed.
5. We proposed basing the settlement on the actual reprocessing cost instead of the full value of the goods.

All parties agreed within 8 days of the claim notification. The settlement was a reprocessing fee of THB 6/kg × 20 tonnes = THB 120,000, plus THB 8,010 for the mill’s handling and drying, for a total of THB 128,010. That is THB 245,490 less than the original demand, a reduction of about 66%. The cargo owner got usable rice back, and the full settlement stayed within the policy limit.

The carrier paid the cargo owner on 29 May 2026 and claimed reimbursement from ERGO. On 7 October 2026, ERGO approved the claim, including the full THB 12,500 cost of trucking the goods back to origin (Chonburi to Korat, about 320 km). That was THB 3,000 more than the carrier had expected.

In a cargo claim, the cargo owner’s demand is where negotiation starts, not where it has to end. Wet or partially damaged goods do not always have to be paid at full value if they can be shown to be reprocessable or salvageable. A carrier with a claims advisor who can research market prices, value the salvage and join the negotiation will settle faster, pay less, and keep the customer relationship intact.