Guide to Filing International Air Freight Loss Claims

Imagine valuable goods traversing oceans and continents, expected to reach their destination on schedule, only to mysteriously vanish during international air transport. The anxious wait of customers and potential financial losses make "missing cargo" a particularly distressing scenario. When facing lost air freight shipments, how can one best protect their rights and minimize damages? This article provides a comprehensive guide to international air cargo loss claims, covering the claims process, compensation standards, and key considerations.

Step 1: Confirming the Loss and Establishing Facts

Verifying cargo disappearance initiates the claims process. Standard determination criteria include:

• Extended arrival delays with no tracking updates: No logistics updates for over 7 days after scheduled destination arrival.
• Carrier-issued documentation: Official "loss certificate" from airlines or freight forwarders.
• Commercial courier/EMS delays: Commercial carriers exceeding 30 days or EMS surpassing 60 days without delivery (based on service guarantees).

Upon suspected loss, immediate action is crucial:

1. Local recipient registration: Notify recipients to file reports with local service points.
2. Obtain official verification: Request warehouse receipts, cargo tracking records, and non-loading/non-arrival certificates from carriers or forwarders, ensuring official stamps for legal validity.
3. Preserve original documentation: Secure pre-shipment photos, packaging videos, air waybills (AWB), warehouse receipts, and customs declarations—critical for proving proper delivery and packaging compliance.

Step 2: Securing Comprehensive Evidence

Documentation forms the foundation for successful claims. A complete evidentiary chain prevents claim denials due to insufficient proof. Essential materials include:

• Transport documents: Air waybills (AWB) serve as primary evidence.
• Commercial invoices and packing lists: Verify cargo value, description, and quantity.
• Warehouse records: Confirm physical handover to carriers.
• Loss certification: Official carrier documentation validating disappearance.
• Payment receipts: Evidence of freight charges paid.
• Cargo visuals: Pre-shipment photos/videos demonstrating original condition.

Step 3: Timely Submission Within Deadlines

International air cargo claims enforce strict time limitations. Missing windows forfeits compensation rights.

1. Identify responsible parties: Prioritize claims against carriers (airlines/couriers). Primary freight forwarders facilitate communication. For insured shipments, simultaneously notify insurers.
2. Adhere to filing periods:
   • The Montreal Convention mandates written carrier notification within 7 days.
   • Most carriers require formal submissions within 30-60 days (UPS allows 120 days).
   • Insurance claims typically initiate within 7-15 days of confirmed loss.
3. Prepare formal submissions: Submit stamped claim letters detailing airway bill numbers, cargo specifications (description, quantity, value), loss circumstances, claimed amounts (including value, freight, duties), and calculation methods. Attach all supporting evidence.
4. Submission channels: File via carrier websites/apps, forwarder systems, or hotlines, obtaining claim reference numbers for tracking.

Step 4: Understanding Tiered Compensation Standards

Compensation varies based on declared value and insurance status:

1. No declared value or insurance: Montreal Convention standards apply—22 Special Drawing Rights (SDR) per kilogram (approximately $32-35/kg, fluctuating with exchange rates), not exceeding actual value. Some carriers impose lower internal limits while waiving applicable freight charges.
2. Declared value: For shipments with declared value and paid surcharges (typically 0.5%-3% of value), compensation reflects the lower of declared or actual value, exempt from convention limits.
3. Cargo insurance: Policy terms govern payments. All-risk coverage generally protects against transit losses (excluding force majeure or prohibited items), compensating actual value plus potential profit margins. Deductibles (commonly 0.5%-2% of value) apply, with payouts capped at insured amounts.

Post-Claim Procedures: Investigation and Resolution

After submission, actively cooperate with carrier/insurance investigations by providing supplementary materials. Upon liability confirmation, negotiate settlement amounts and methods, finalizing agreements with payment timelines (typically 7-15 business days).

Unresolved disputes permit legal action within two years at carrier headquarters or destination courts, or arbitration per insurance terms. Verify received amounts before closing claims. For delayed payments, issue formal reminders and consider legal notices if necessary.

Preventive Measures and Risk Mitigation

To minimize claim disputes, consider these precautions:

• Declare value or insure high-worth shipments: Avoid substantial losses from basic convention compensation.
• Maintain document consistency: Align airway bills, invoices, and packing lists, declaring CIF values accurately.
• Select qualified carriers: Engage certified primary forwarders and airlines, clarifying loss clauses in transport agreements.
• Document thoroughly: Preserve electronic and physical records throughout, initiating evidence preservation immediately upon suspected loss.

International air cargo loss claims involve complex, time-intensive processes. Comprehensive understanding of procedures and standards, coupled with meticulous preparation, enables optimal protection of rights and loss minimization when incidents occur.