Receiving damaged or missing goods from international air shipments can be frustrating and costly. When faced with this situation, knowing how to navigate the complex claims process is essential for recovering your losses efficiently. This guide breaks down each step of the air cargo compensation process to help you protect your rights.
1. The Foundation of Your Claim: Documenting Evidence Immediately
Discovering that your air cargo has arrived damaged or partially missing can be distressing. However, beyond the initial frustration, taking immediate action to document the issue is crucial for a successful claim.
Always inspect goods upon receipt. If you find damage or missing items, begin collecting evidence immediately. Note that documentation must typically be completed within 3-7 days of arrival (some airlines allow 7-14 days - check your air waybill terms), as delays may void your right to claim.
For missing cargo:
- Request a non-receipt certificate from the destination freight forwarder or consignee
- Obtain a cargo loss confirmation letter from the airline
- Save abnormal tracking records
- Keep warehouse receipts and inventory records proving non-delivery
For damaged cargo:
- Take 360-degree videos and high-resolution photos showing the air waybill number, packaging condition, damage details, and item status
- Have delivery personnel note damage on the delivery receipt with their signature
- Request an official damage assessment report from the airport (with official stamp)
- Preserve all original packaging for potential inspection
Essential supporting documents to retain include:
- Original air waybill or electronic release copy
- Commercial invoice
- Packing list
- Booking agreement
- Insurance policy (if applicable)
Additionally, maintain all correspondence with airlines, freight forwarders, and insurers, along with proof of any consequential losses (like penalty payments) resulting from the damage or loss.
2. Identifying Responsible Parties and Claim Deadlines
Before filing a claim, identify the responsible party and understand applicable deadlines. Missing these windows may invalidate your claim.
Potential responsible parties fall into three categories:
Airlines: Liable for losses caused during transport (improper handling, flight scheduling issues, etc.). Compensation follows international conventions like the Warsaw or Montreal Conventions. Typically, you must submit written notice for damaged/missing goods within 7-14 days of receipt (21 days for delayed deliveries). Formal claims must be filed within two years of transport completion.
Freight Forwarders: Responsible for errors in booking, documentation, or handling. Claims follow terms in your booking agreement and should be filed promptly after discovery.
Insurers: If you purchased cargo insurance, you may claim regardless of fault. Notification typically required within 3-7 days of arrival (check your policy).
3. Submitting a Complete Claim Package
To expedite processing, prepare a comprehensive claim package including:
A formal claim letter on company letterhead containing:
- Air waybill number
- Description of goods
- Quantity and value
- Detailed loss description
- Claim amount (including merchandise value, shipping costs, taxes, and additional losses) with calculation basis
- Evidence inventory
Supporting documentation:
- Completed claim form (using the responsible party's template)
- Air waybill copy
- Commercial invoice
- Packing list
- Booking agreement/insurance policy
- Damage/loss evidence (reports, photos, signed delivery notes)
When working through a freight forwarder, request their communication records with the airline to prevent delays. For insurance claims, submit loss assessment requests and cooperate with inspections.
4. Follow-Up and Settlement Process
After submission:
- Cooperate with investigations (provide additional documentation, allow inspections)
- Negotiate settlement amounts (note that airline liability is often capped - e.g., Montreal Convention limits to approximately $21 per kg)
- For insured shipments, claims typically cover actual losses
Upon agreement:
- Sign a settlement agreement specifying payment amount and timeline (typically 7-15 days)
- Follow up on overdue payments with reminder letters
- Consider legal notices if necessary
If the responsible party refuses cooperation:
- File complaints with regulatory bodies (e.g., Civil Aviation Administration for Chinese carriers, IATA for international airlines)
- Request third-party mediation
- Pursue legal action if needed (generally within two years of transport completion)
For remaining cargo value, negotiate disposition to minimize additional losses.
5. Key Preventive Measures
To reduce air cargo claim risks:
- Purchase adequate cargo insurance covering potential maximum losses
- Select reputable airlines and freight forwarders with clear contractual terms
- Always inspect goods upon delivery
- Maintain complete records of all transactions and communications
- Understand relevant international conventions and destination country regulations
While international air cargo claims can be complex, proper documentation, timely action, and persistent follow-through can help recover your losses effectively.