When air freight shipments sustain damage during transit, many importers struggle with the claims process. International cargo transportation involves numerous risk factors across complex logistics chains, creating challenges even for experienced importers. This article examines a real-world case handled by Dasun Company to provide a step-by-step guide for efficient damage claims.
Case Study: High-Value Decorative Fabric from Spain
In December 2022, Beijing Textiles Co. (pseudonym) engaged Dasun Company to air freight a shipment of decorative fabric from Madrid to Beijing. The high-value goods, packed in cartons, faced multiple risk points during international transit including handling, transfers, and storage operations.
The Critical Role of Cargo Insurance
During initial consultations, Dasun's representatives identified a crucial gap: the client hadn't purchased international cargo insurance. Under FOB (Free On Board) terms, the seller's responsibility ended upon Madrid delivery, transferring all risk to the buyer during transit.
After understanding these risk allocations, Beijing Textiles authorized Dasun to procure insurance through Ping An Insurance Company. The process involved:
- Submitting commercial invoices and packing lists
- Securing flight booking confirmations
- Completing insurance application forms
- Receiving electronic policy documents
Damage Discovery During Pandemic Restrictions
During China's strict pandemic controls, enhanced handling and disinfection protocols increased damage risks. Upon arrival at Dasun's customs warehouse, operators noticed a carton with visible puncture damage. The team immediately:
- Documented damage with timestamped photographs
- Obtained a formal Cargo Damaged Form from ground handlers
- Notified the client within two hours of discovery
Efficient Claims Resolution Process
Dasun's claims specialists guided Beijing Textiles through Ping An's claims process:
- Initial Reporting: Filed claim within 24 hours with policy details, damage description, and contact information
- Damage Assessment: Provided photographic evidence, airway bills, and quantified loss statements
- Documentation: Submitted complete claims package including bank details for reimbursement
The entire process concluded within seven business days, with full compensation transferred to the client's account.
Key Takeaways for Importers
This case demonstrates several best practices for air freight damage claims:
- Proactive Insurance: Secure comprehensive coverage before shipment
- Documentation Protocol: Photograph damages immediately and obtain carrier inspection reports
- Claims Preparedness: Maintain organized records of commercial documents and correspondence
- Professional Partnerships: Leverage experienced freight forwarders for claims assistance
Understanding Cargo Insurance Options
International shippers should evaluate these common coverage types:
- Free From Particular Average (FPA): Covers total losses from accidents/natural disasters but excludes partial damage
- With Average (WA): Extends to partial natural disaster damage, typically with deductibles
- All Risks: Broadest coverage excluding specific war or strike-related clauses
Insurance selection should consider commodity type, value, transport mode, and destination risks. Professional logistics providers can offer valuable guidance in structuring appropriate coverage.