This article considers how UAE logistics businesses serving Iraq should allocate custody and cargo claims across sea transport, storage and road delivery. Goods moving from Jebel Ali to Baghdad may pass through a shipping line, port terminal, warehouse and road haulier. When loss or damage is found on delivery, the location and cause are often unclear even if the commercial relationship with the logistics provider is not.
Iraqi law on carriage is set mainly by the Transport Law No. 80 of 1983, which regulates contracts of carriage by land, sea and air, carrier liability and notice requirements, and by the Civil Code No. 40 of 1951 on deposit, agency and compensation. International conventions and foreign law may govern particular legs, such as the sea voyage, and require separate examination. The General Company for Ports of Iraq and customs authorities are often involved at the Iraqi end.
The logistics provider’s contractual role
The provider may undertake the whole movement as principal carrier or arrange services as an intermediary. The quotation, transport documents and standard trading conditions should be read together. Calling a business a freight forwarder does not settle whether it assumed responsibility for the cargo throughout the journey; the Transport Law distinguishes carriers from commission agents for carriage, with different liabilities.
A review of transport and supply contracts involving Iraq should identify the contracting carrier and the providers actually performing each leg. The cargo owner’s sale contract may allocate delivery risk, but Incoterms do not determine carrier liability, and the terms governing carriage and storage must be examined separately.
Recording custody and cargo condition
The evidence should show when each provider received and released the cargo. Container seals, loading records, warehouse receipts and delivery notes can identify the period in which damage occurred. Their value depends on what was actually checked; a receipt for a sealed container may say nothing about the condition of its contents.
Where damage is visible, reservations should be recorded accurately on the delivery document and supported by photographs or a survey. Temperature-sensitive goods need continuous monitoring records and equipment settings. Originals should be preserved and gaps in the chain of custody explained, rather than assuming the final road carrier is responsible simply because it made the delivery.
Applicable liability and notice requirements
Different legs may be governed by different rules on liability, exclusions, limits and time bars. The Transport Law requires prompt notice of damage on delivery and sets short limitation periods for claims against carriers, and international sea carriage rules have their own deadlines. A notice sent to the customer’s logistics provider may not preserve a claim against every subcontractor.
Requirements should be checked immediately after discovery. Participation in a joint survey or commercial discussions does not necessarily suspend a limitation period. Liability limitations must also be tested against mandatory rules; the Transport Law, for example, does not allow a carrier to exclude liability for its own fraud or gross fault. The amount recoverable from one provider may differ from the cargo owner’s loss.
Customs holds and border delays
Delays at Iraqi borders or ports are common and can lead to deterioration of goods, storage charges and demurrage. A customs hold should be distinguished from physical damage in custody: the reason for detention may affect responsibility for delay without showing which provider caused damage. Contracts should allocate border waiting time, inspection costs and demurrage expressly, as these costs often exceed the value of minor physical damage.
Claims coordination and insurance
The claim should separate physical cargo loss from delay costs, storage charges and consequential loss, each requiring its own basis. Mitigation and salvage decisions, such as repair, resale or disposal of damaged goods, should be documented.
Where cargo insurers are involved, notification should be coordinated and recovery rights against responsible parties preserved. Cargo dispute support in Iraq should also cover settlements with individual providers, as a release given for a quick partial payment can affect other claims or the insurer’s subrogation rights. Settlements should state what is paid and which rights remain open.
Warehousing obligations
Storage in the UAE or in Iraq is often the least documented stage of the journey. The warehouse keeper’s liability depends on its contract and the applicable law on deposit, which generally requires the depositary to take reasonable care of the goods. Warehouse receipts should record quantities, condition and any visible damage at receipt and release, and stock counts should be reconciled regularly.
Cargo owners should check whether the warehouse holds insurance covering goods in its custody and whether that cover is limited to its own legal liability or extends to the goods’ full value. Where goods are stored for long periods, for example pending Iraqi customs clearance, deterioration risk, pest control and climate control should be addressed expressly. Charges for storage beyond the agreed period, and the warehouse’s right to retain goods for unpaid charges, should also be clear.
Conclusion & how Etihad Law Firm can help
Cargo claims succeed when there is a documented link between custody, damage and the legal responsibility of the relevant provider, supported by timely notices.
As Iraq international trade lawyers for Emirati companies, Etihad Law Firm reviews logistics and carriage contracts, advises on Transport Law notice and limitation requirements, and pursues and defends cargo claims in Iraq, coordinating local evidence and procedure with the wider transport and insurance arrangements.