xChange Claim Terms and Conditions

Click here for Chinese version (Translated as per 03/July/2023)

Published December 15, 2022
Last updated February 05, 2024

1. INTRODUCTION

a. The present xChange Claims Terms & Conditions serve as the standard terms for all damage, insurance and DRV claim opening, processing and settlement on the Leasing Platform.

b. xChange Claims Terms & Conditions, also referred to simply as Claims T&C, act as official claim settlement policy, which is automatically applied for leasing deals on the Leasing Platform.

c. The full list of used Definitions can be found in Part (10).

d. While all commercial details are negotiated and agreed on the Leasing Platform, in accordance with the xChange Standard Container Lease Agreement, the terms below govern the process and responsibilities regarding the damage, insurance and DRV claims opening, processing and resolving. These terms have been designed with the objective of maximum neutrality and fairness between the Supplier and the User.

e. The Claims T&C are published electronically on the Container xChange website and are subject to change without prior notice. The most current and controlling version of the Terms & Conditions is published at “https://www.container-xchange.com/claims-terms-and-conditions“.

f. From the moment of opening a leasing deal, both the Supplier and the User agree that the version of the Claims T&C in effect at the time will apply to the leasing deal.

2. ON-HIRE DAMAGE CLAIMS

a. The Supplier must ensure that at the time of pick-up the Equipment shall be in a good and serviceable condition and shall have been designed, manufactured, tested and maintained in compliance with the regulations and standards detailed as per xChange Standard Container Lease Agreement.

b. To confirm the condition of the Equipment prior to the interchange, the User may choose to survey the Equipment. The costs of organizing a survey in this case shall be for the User’s account. If the survey is requested by the User, the Supplier must make the Equipment available for this inspection at their own cost, including any depot fees required for allowing the surveyor to conduct the survey.

c. In case the Equipment is leased to the User in a damaged condition and the User or User’s agents agree to pick up the damaged Equipment, the User must inform xChange about the existing damage on the day of pick-up. The User must provide photos of the damage and if possible the repair estimate within 5 working days from the actual pick-up date of the containers. xChange will then review the case and share a resolution proposal on a case-by-case basis. Failure to inform about the existing damages within the stipulated deadline means that the containers are accepted by the User “as is”.

i. In case both parties agree with xChange’s resolution proposal, the conclusion will be binding and final. All charges and credits will then automatically be settled through the xChange wallet.

ii. In case the resolution proposal is rejected and the agreement is not reached, an on-hire / desk survey must be organized. The Supplier and User agree to be bound by the opinion of the joint surveyor and to equally share the cost of the survey. Any charges/credits will be automatically settled through the xChange wallet.

e. All handling charges on pick-up are on the Supplier’s account, unless agreed otherwise on the Leasing Deal page.

3. OFF-HIRE DAMAGE CLAIMS

a. When redelivering the Equipment to the Supplier’s nominated depot, the Equipment shall be deemed as to have been redelivered in undamaged condition unless the Supplier opens a Damage Claim for the affected Equipment.

b. In the event Equipment is redelivered in a damaged condition, the Supplier shall open a Damage Claim within 5 (05) working days (Mo-Fr) after the return of the Equipment. This is to be referred to as “opening a damage claim” in the below.

c. The User is liable to the Supplier for the actual or constructive total loss of the Equipment, or damage to the  Equipment which occurred within the duration of the request deal (Wear&Tear excluded).

d. Confirmation of the drop-off date is a prerequisite for the opening of the damage claim for the affected Equipment.

e. The claim is to be shared with xChange via the report button on the damage request page or via an email to service@container-xchange.com/ conops@container-xchange.com and needs to include request number, container number(s), EOR(s) (Estimate of Repairs), pictures of the damages, depot information and drop-off dates.

i. The repair estimates must be in English format and should include the following items:
Container number, Comp code, Loc code, Damage code, Repair code, Length, Width, Quantity, Labour Hours, Labour Cost, Material Cost, Total Cost and Currency.

ii. Photos should clearly depict the damages and the container number

f. If the damage claim is not submitted to xChange within the timeframe stipulated above, the claim will be considered extemporaneous and therefore null and void.

g. In case the above-mentioned time-frame cannot be met due to reasons beyond the control of the Supplier, xChange reserves the right to approve or deny the opening of the damage claim as per its own discretion.

h. In cases where the damaged Equipment is repairable but cannot be repaired at the agreed drop-off location, both parties agree to follow with the following resolution plan for the connected Damage Claim:

i. The parties must find the closest location which can provide the repairs.
ii. The chosen location must provide a repair estimate for the equipment.
iii. Either a physical or desk survey must be organized for the affected units.
iv. The damage claim is then settled as per results of the survey.
v. The transportation costs to the chosen location are to be borne by the Supplier.

i. All handling charges on drop-off are on the Supplier’s account, unless agreed otherwise on the leasing deal page.

4. DAMAGE SETTLEMENT PROCESS FOR DEALS WITH NO OR BASIC INSURANCE PLAN

a. After the Damage Claim is opened, xChange shall check the submitted claim for completeness and applicability and once approved xChange shall then forward the claim to the User.

b. Within five (05) working days (Mo-Fr) after receiving the damage claim from xChange, the User shall either confirm acceptance of the estimated repair damages or dispute the claimed damages as per xChange Standard Container Lease Agreement.

c. If the User agrees with the repair damages or does not respond to xChange within the number of working days stated above, the User shall pay for said repairs specified in the estimate, excluding the Wear & Tear.

i. If applicable, any previously agreed DPP shall be subtracted from the estimated repair amount.

ii. Any charges/credits will be automatically settled through the xChange wallet.

d. In case the User disagrees with the estimate of repair costs or disagrees that any item should be for the User account, the User shall detail its objections on a line item level within the period stated above and share it with xChange either on the request chat or per email (service@container-xchange.com or conops@container-xchange.com).

i. The Damage Claim and all supporting documents shall then be reviewed by xChange.

ii. An assessment of the case will be issued and a resolution proposal put forward to all parties involved.

iii. Within five (05) working days (Mo-Fr) of receiving the above mentioned resolution proposal, User and Supplier shall revert to xChange on the request chat with either confirmation or rejection of the proposal.

iv. Failure to respond within the above-mentioned time-frame will result in automatic acceptance of the proposal. In case said time-frame cannot be met by either one of the parties for reasons beyond its control, xChange reserves the right to approve or deny the closure of the damage claim as per its own discretion.

v.  In case both parties agree with xChange’s resolution proposal, the conclusion will be binding and final and any charges/credits shall be automatically settled through the xChange wallet.

vi. In case one or both parties disagree with xChange’s resolution proposal, a survey will be organized by xChange within ten (10) working days (Mo-Fr). Both parties can alternatively choose to appoint a surveyor of their choice to conduct a survey based on the mutual agreement. In this case both parties must inform xChange about their choice within five (5) working day after the rejection of the resolution proposal. The survey must then be organized within ten (10) working days.

vii. In either case an appointed external joint surveyor will inspect the Equipment, review the Damage Claim including all supporting documents and issue a final opinion. The Supplier is to make the equipment available for survey at their own cost, including all of the handling and lifting fees. The Supplier and the User agree to be bound by the opinion of the joint surveyor and to equally share the cost of the survey. Any charges/credits will be automatically settled through the xChange wallet.

vii. In case the Supplier does not make the equipment available for survey within fifteen (15) working days (Mo-Fr), repairs or releases the equipment before the survey has taken place, the Supplier automatically forfeits the right to claim damages and will bear all repair related costs. The Damage Claim will therefore be closed.

e. The Supplier and the User agree to be bound by the opinion of the joint surveyor and to equally share the cost of the survey. Any charges/credits shall then be automatically settled through the xChange wallet.

5. DAMAGE SETTLEMENT PROCESS FOR DEALS WITH PREMIUM INSURANCE PLAN

a. After the Damage Claim is opened, xChange shall forward the information to the insurance and issue a reminder for the Supplier to make units available for survey.

b. The Supplier must contact the Depot and make the Equipment available for inspection at their own cost, including any depot fees required for allowing the surveyor to conduct the survey.

i. In case the Supplier does not make the equipment available for survey within fifteen (15) working days (Mo-Fr) after the submission of the damage claim, repairs or releases the equipment before the survey has taken place, the Supplier automatically forfeits the right to claim damages and will bear all repair related costs.

c. The appointed surveyors will then contact the depot and schedule the survey.

d. In cases where the difference between damage claim amount and the DPP is below 50% of the DPP, the survey can be organized as either desk survey or off-hire physical inspection.

e. xChange receives the revised estimates from the surveyor and informs both the Supplier and the User. The results of the survey are final and binding.

f. The standard procedure for payment is:

i. Supplier pays the total (revised) amount to the depot
ii. xChange credits the Supplier’s wallet with the total (revised) amount minus DPP
iii. xChange charges the User’s wallet with the total (revised) amount minus DPP
iv. xChange credits the User’s wallet with the insurance refund as listed in the surveyor approved estimate.

6. DRV CLAIMS MANAGEMENT

a. The Supplier has the right to request the User’s payment of the Discounted Residual Value of the Equipment in cases where the affected Equipment is deemed beyond repair or in cases where the affected Equipment cannot be redelivered within the agreed time frame. This is referred to as the “opening of the DRV Claim” below. The standard time frame set on the platform is 365 days.

b. Once the DRV Claim is approved by the xChange team, the User must pay the calculated DRV amount.

c. In cases with a clear indication that the Equipment cannot be redelivered prior to expiration of the deadline, such as loss of the container, wrong redelivery etc., both the Supplier and the User have an opportunity to request opening of a DRV Claim for the affected Equipment.

d. To open a DRV Claim, the Supplier has to share the Year of Manufacturing for the affected Equipment with the photos of the units and its CSC Plates with the xChange team. If the CSC Plates are not available, the Manufacturing Certificate can be submitted. In case that there is no proof of manufacturing year submitted within 1 week since the start of the DRV Claim, the DRV will be calculated as per minimum replacement rate agreed on the platform. After the calculation, the submission of a DRV Claim is considered complete.

e. Once the Supplier submits the DRV Claim, it will be reviewed internally by xChange. Once approved, the User will be informed about the opening of the DRV Claim against them, and within 5 working days they have to provide proof that the units are going to be returned at the earliest possible date.

i. If there is no proof provided within 5 working days, the User must pay the DRV amount. The invoice for the DRV amount will be created and charged to the User.
ii. If the units can be returned within the deadline acceptable for the Supplier, the User has to pay extra per diem charges until the redelivery of the containers.
iii. If the units can be returned within the deadline unacceptable for the Supplier, the User must pay the DRV amount. The invoice for the DRV amount will be created and charged to the User.

f. In cases where the equipment is damaged beyond repair or the cost of repair exceeds the Discounted Residual Value, a DRV claim will be opened and invoiced directly to the User. In such cases the Supplier or the User has to provide the repair estimate or any other proof that the units cannot be repaired.

g. Once the DRV amount is received, the Supplier must issue the transfer of ownership document and share it with the User. Once the transfer of ownership document is received, the User is considered to be the owner of the affected Equipment.

i. In exceptional cases xChange may require the Supplier to confirm the Equipment ownership before concluding the DRV Claim. If Equipment ownership proof is not provided and/or ownership is linked to a third party, the Supplier must provide written confirmation from the original owner, affirming their consent to proceed with the DRV Claim. This verification is essential to conclude the transfer of ownership and thus close the DRV Claim.

h. In cases where the User and the Supplier agree to swap the affected lost or damaged Equipment, xChange does not guarantee, assist or supervise the swap. The decision to swap the containers and all of the respective risks are to be borne by the Supplier and the User.

7. INSURANCE LOSS CLAIMS FOR LOST CONTAINERS

a. Any User who has purchased either Basic or Premium Insurance plan has an opportunity to open an Insurance claims for the lost units, which qualify for the Insurance Loss criteria (see xChange Insurance policy for details).

b. For all Insurance claims, xChange is assisting the User in communication with the Insurance Partners and is submitting all the necessary documentation on the User’s behalf.

c. In the event Equipment is redelivered in a condition qualifying the Insurance Loss criteria and Basic or Premium Insurance plan were purchased for the leasing deal, the User may report the affected Equipment to xChange as a Insurance Loss claim via an email to (conops@container-xchange.com).

i. The User shall provide the xChange with a CSC plates of the affected Equipment, confirmation which party should be held liable for the Total Loss/Mysterious Disappearance of the Unit, search history (for the Mysterious Disappearance) and proof of damage (for the Total Loss).

d. After the Insurance claim for the affected Equipment is opened, xChange shall gather all of the necessary information regarding the lost containers and forward the information to the Insurance.

e. Based on the evaluation of the Insurance Partner, the refund for the Insurance claim will be issued and automatically settled through the xChange wallet.

8. GATE-IN AND GATE-OUT DATA CLAIMS

a. Both Suppliers and Users have the right to open a claim to dispute the validity of gate-in and gate-out data recorded on the Leasing Platform until the 15th of the month following the month in which the data was reported to the Leasing Platform. This process shall hereinafter be referred to as “opening a Gate-In and Gate-Out Claim.”

b. If the Gate-In and Gate-Out Claim is not submitted to xChange in accordance with the present Terms and Conditions and within the timeframe stipulated above, the claim will be considered extemporaneous and therefore null and void.

c. In case the above-mentioned time frame cannot be met due to reasons beyond the control of the disputing party, xChange reserves the right to approve or deny the opening of the Gate-In and Gate-Out Claim as per its own discretion.

d. The Gate-In and Gate-Out Claim is to be shared with xChange via an email to conops@container-xchange.com and needs to include the following information in English format:

i. Container number
ii. xChange Leasing deal ID
iii. Gate-in and gate-out locations as recorded on the Leasing Platform
iv. Gate-in and gate-out dates as recorded on the Leasing Platform
v. Clearly delineated disputed elements
vi. Supporting evidence for the disputed elements, such as an Equipment Interchange Report (EIR)

e. Following the opening of Gate-In and Gate-Out Claims, xChange shall proceed with claim handling in following manners, based on the nature of the dispute: 

i. In the event of an opened claim concerning the actual act of picking up containers, the Supplier or the User can be requested to provide evidence of pick-up. The requested party must provide the necessary evidence within 5 (five) working days after the claim has been raised. If the necessary evidence is not submitted to xChange by the requested party within the aforementioned period, the claim will be considered valid.
ii. In the event of an opened claim concerning the actual act of dropping off containers, the Supplier or the User can be requested to provide evidence of drop-off. The requested party must provide the necessary evidence within 5 (five) working days after the claim has been raised. If the necessary evidence is not submitted to xChange by the requested party within the aforementioned period, the claim will be considered valid.
iii. In the event of an opened claim concerning the dates, locations or any other data related to the pick-up and drop-off of the containers, the disputing party shall present relevant evidence within 5 (five) working days after the claim has been opened. If the necessary evidence is not submitted to xChange within the aforementioned period, the claims will be considered null and void.

f. After the Gate-In and Gate-Out Claim is opened, xChange shall check the submitted claim for completeness and applicability (according to the criteria above-mentioned). Once approved xChange shall then inform the other party of the claim opening.

g. Based on the provided evidence, xChange shall provide an official conclusion to either amend or keep the gate-in and gate-out data as is on the Leasing Platform. Both Suppliers and Users are bound by the conclusion of xChange. 

Claim type Deadline to open claim Party to provide evidence Deadline to provide evidence
Act of picking-up containers Until the 15th of the month following the reporting date Requested party 5 working days from the opening of the claims
Act of dropping-off containers Until the 15th of the month following the reporting date  Requested party 5 working days from the opening of the claims
Dates, location of the pick-up of containers or container numbers Until the 15th of the month following the reporting date  Disputing party 5 working days from the opening of the claims
Dates, location of the drop-off of containers or container numbers Until the 15th of the month following the reporting date  Disputing party 5 working days from the opening of the claims

9. ADDITIONAL NOTE COVERAGE

a. Any specific agreements or supplementary terms between the Supplier and the User beyond the standard xChange Claims Terms & Conditions can be documented and stored in the dedicated “Additional Notes” field on the Leasing Deal page on the xChange Platform. Such Additional Notes hold no binding character, and xChange does not process, guarantee or enforce them in any manner.

b. The payment settlement of the additional notes is possible only in full accordance with the xChange Leasing Payment Handling Terms and Conditions. 

10. DEFINITIONS

❖ “Equipment” means freight containers as defined by the International Organization for Standardization (ISO) and/or related equipment, such as clip-ons.

❖ “Supplier” means the Party supplying the Equipment to the other party.

❖ “User” means the Party utilizing the Equipment supplied by the Supplier.

❖ “Request” means the specific deal between The User and The Supplier related to the lease of Equipment.

❖ “The Leasing Platform” means the online Platform operated by xChange Solutions GmbH which The User and The Supplier use to facilitate a lease of Equipment deal.

❖ “The Damage Claim” means an officially opened damage dispute regarding the damages on the Equipment. The claim is considered officially opened once all the required documents are shared with and approved by xChange.

❖ “The DRV Claim” means an officially opened compensation claim regarding the lost or irreparable Equipment. The claim is considered officially opened once all the required documents are shared with and approved by xChange.

❖ “The Insurance Claim ” means an officially opened claim for an Insurance Refund regarding the lost or irreparable Equipment, which previously had Basic or Premium Insurance plan applied for the connected leasing deal. The claim is considered officially opened once all the required documents are shared with and approved by xChange.

❖ “Additional Notes”  mean any specific agreements or supplementary terms between the Supplier and the User beyond the standard xChange Claims Terms & Conditions, which are documented and stored in the dedicated “Additional Notes” field on the Leasing Deal page on the xChange Platform. Such Additional Notes hold no binding character, and xChange does not process, guarantee or enforce them in any manner.

❖ “Gate-in and gate-out data”: means any data related to the location or the date at which the Equipment has been picked-up or delivered. It can also apply to the container number. 

❖ “Reporting date”: means the date when the gate-in or gate-out movement data (as defined above) is recorded on the Leasing Platform for the first time. Depending on the reporting date, the gate-in and gate-out data might be visible on the invoice of the same or the following month.