WorkflowAir Cargo

Air Cargo Claims Management

Air cargo claims management where the agents show where the loss happened, value it at the right limit and draft the cited letter, and the claims handler decides

Every cargo claim settled at the right liability, with custody, limit and proof cited.

See one case, screen by screen ↓
demo$2,860offeredoffered of $7,400 claimed on the sample roses claim, each line offered or not with its reason
demo94%confidence that the loss happened on the handler's open dock at Miami, from 14 handling events and the logger
target3daysto an offer or denial after a complete file
target80%of handler-caused payouts claimed back inside the agreement's clock
In short

What is Air Cargo Claims Management?

Air cargo claims management is the airline's work of taking an air freight claim for damage, loss or delay from the first notice to a settlement or denial, and claiming back from the ground handler or partner airline where the loss happened in their custody. Air Cargo Claims Management gives the cargo claims handler eight agents that replay the shipment's custody, test liability under the Montreal Convention twice, value each line at the right limit and draft the cited letter and the recovery; the handler asks them questions and approves, edits or rejects with a reason.

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Updated

The problem

Why a cargo claim takes five weeks, and still lands at the wrong liability

Air cargo claims management starts when a shipment arrives damaged, short, late or not at all, and the consignee or its insurer claims against the airline. The claims handler then rebuilds what happened across two or three airports, a warehouse handler, customs and sometimes a partner airline, from status messages, warehouse spreadsheets, logger files and email. Every claim turns on one question: where did the loss happen, and in whose hands?

The answer decides the money. Since December 28, 2024 the Montreal Convention cargo limit is 26 SDR a kilogram of the packages concerned, and templates written for 22 SDR, or worked on the whole shipment's weight, are wrong. In cargo claims handling today, handlers settle on what the claimant asserts or deny on what the airline assumes; the person who wants to close the file also tests the defenses; and when the loss happened on a handler's dock, the airline pays and rarely claims it back inside the handling agreement's clock.

typical26SDR/kgthe Montreal Convention cargo limit for losses from Dec 28, 2024, up from 22
typical18%more on the cargo limit than the 22 SDR it replaced, wherever the limit bites
typical14daysfor the consignee's notice of damage; 21 days for delay (Article 31)
Where a cargo claim's days go, from notice to offerestimated
By hand34 days
With the solution3.0 days
  • Logging the notice, matching the air waybill, checking the clock2 → 0.1 d
  • Rebuilding custody from status messages, warehouse logs and the logger9 → 0.1 d
  • Chasing the invoice, survey, photos and delivery receipt10 → 2 d
  • Deciding liability and testing the defenses5 → 0.2 d
  • Valuing each line and working out the limit4 → 0.1 d
  • Writing the letter and getting it signed4 → 0.5 d

Estimated split for a claim on a perishable shipment, by hand (about five weeks, an illustrative baseline) and with the solution once the file is complete.

How it works

How a cargo claim is settled

Eight agents replay the shipment's custody, test liability twice, value it at the limit and draft the letter and the recovery; people sign.

What comes in
Claim in1,284 claims this year · notice, status messages, logger, invoice, agreements
Agents at work
Claim intake agentair waybill, clock, duplicates
Then
Custody replay agentwhere the loss happened
Then
Liability agent
Defenses checkerworks on its own
Valuation agentlimit on the packages concerned
Then
Letter writerevery sentence cited
Recovery agentclaims it back from the handler
A person decides
Cargo Claims Handlerapproves, edits or rejects with a reason; the Manager signs above $5,000 and every recovery
What comes out
Cited offer or denial
Recovery from the handler
Corrective action request
One case, step by step

One air cargo claim, from the replayed journey to the signed offer and the recovery

Lakeshore Stem Supply, a Chicago wholesaler, received 46 boxes of fresh-cut roses from Bogotá on air waybill 951-48221876 for its Sweetest Day orders. Twenty-six boxes arrived limp, and it claims $7,400. Here is how Elena Vargas, a cargo claims handler at Corvane Cargo, works the claim with the agents, screen by screen, in the working solution.

  1. 01Friday morning

    The agents worked 23 claims overnight; six need her

    Elena Vargas · Cargo Claims Handler

    Her Today page lists six items, each with one next step: approve the $2,860 offer to Lakeshore Stem Supply, decide a notice that came on day 19 of 14, sign a $16,900 denial where a 62-hour CBP hold is the defense, approve three small claims in bulk. Beside it, the agents' overnight thread says what each one did, in plain words, with a source behind every sentence.

    Custody replay agent, 03:40: “On CC-2026-1187 the roses warmed on Coralway's MIA dock from 02:10 to 05:14, peaking at 14.8 °C. I am 94% confident that is where the loss happened.”

  2. 02One click

    The claim is the journey, replayed on one line

    Custody replay agent

    Fourteen handling events from booking in Bogotá to delivery in Chicago sit on one time axis: accepted at 2.1 °C with no remarks, CV 980 to Miami, CBP released at 00:46 at 3.4 °C, into Coralway Cargo Services' warehouse at 01:58. Custody bands run underneath, and the logger trace from box 14 is drawn across the same axis, so the three hours above 8 °C sit on Coralway's band. The claim and its photos are pinned to the 02:10 event.

    “Likely here · 94%” — Left on open dock, 02:10, cooler C3 full.

  3. 03Open the record

    Every event opens its source

    Elena Vargas · Cargo Claims Handler

    She opens the 02:10 event. Coralway's cold room sensors show cooler C3 at 88% at 01:30 after a late freighter's breakdown, then 100% at 02:10 with “No space for AWB 951-48221876”, and the 46 boxes in bay C3-7 only at 05:14. The record carries its fingerprint and is read by the agents, never edited.

  4. 04In conversation

    She asks why the freight is left out

    Elena Vargas and the Valuation agent

    Elena types “Why not the freight?” in the conversation beside the replay. The Valuation agent answers that the air waybill shows the $830 freight prepaid by the shipper, Rosaval Farms, so Lakeshore did not pay it and it is not Lakeshore's loss. Beside the conversation, the liability position reads: liable under Article 18(1), neither defense holds, the limit does not bite.

    “If Rosaval claims it, I will look again.”

  5. 05Two agents agree

    Liability tested twice, the limit in one sentence

    Liability agent and Defenses checker

    The Liability agent finds the warming happened while the roses were in the carrier's charge. The Defenses checker, working without that view, rules out inherent defect, packing, public authority and war: accepted cold with no remarks, 20 boxes in the same packing are sound, CBP released before the warming. The limit: 26 SDR × 299 kg of the 26 boxes concerned × $1.3598 (IMF, Oct 15, 2026) = $10,571, more than the $7,400 claimed.

    Packages concerned · 299 kg — “The basis the Convention sets.”

  6. 06Line by line

    $2,860 of $7,400, and a letter with every sentence cited

    Valuation agent and Letter writer

    Eighteen boxes destroyed at the $130 invoice value, $2,340; eight sold at half value, $520. The $235 Sweetest Day price waits for purchase orders, already asked for at 09:05; the survey fee is left out because Corvane offered a joint survey on October 9. The Letter writer drafts the offer to Joanna Pierce at Lakeshore in 10 sentences, one fact each, each with its source.

  7. 0709:25 · Approved and sent

    She approves within her authority; the claim back is drafted

    Elena Vargas · Cargo Claims Handler

    The $2,860 offer is within her $5,000 authority. She picks the reason code “Liability accepted — proven loss” and approves; the offer goes to Lakeshore Stem Supply, with payment on the signed release, and the decision panel records who sent it, when and why. In the same moment the Recovery agent drafts $2,860 against Coralway Cargo Services under Annex B MIA §4.2, for Marcus Reid to sign.

    “Sent by Elena Vargas at 09:25 · Reason: Liability accepted — proven loss.”

  8. 08Signed by the manager

    The same evidence becomes the recovery from the handler

    Marcus Reid · Cargo Claims Manager

    Annex B MIA puts perishables into cold storage within 30 minutes of breakdown; the roses were broken down at 02:06 and reached cooler C3 only at 05:14, after waiting on open dock P4. Under SGHA Sub-Article 8.6, kept in that Annex, Corvane claims $2,860 from Coralway, no more than its own liability. The clock is on the page: notify Coralway by Nov 2, 17 days away, and send the claim with evidence by Jan 10; the amount is over the $500 floor.

    Recovery agent: “It asks for exactly what Corvane pays Lakeshore Stem Supply. A Claims Manager signs it.”

  9. 09The pattern

    Nine excursions on one dock become a corrective action

    Hannah Kowalski · Cargo Quality Manager

    The Trend analyst finds the roses were the 9th dock excursion at Coralway MIA in 60 days, all between 01:00 and 05:00, each after a late freighter filled cooler C3. It drafts a corrective action request for Hannah: hold space in C3 for Corvane passenger-flight perishables between 00:00 and 06:00, alert the Corvane duty manager when a perishable shipment is on the dock for 20 minutes, and send a corrective action plan by October 30, 2026.

    “Names the dock and the hours; no claimant is named.”

Who it’s for

Built for everyone who touches a cargo claim.

The same roses claim, seen by the five people at Corvane Cargo who carry it — what their week looked like, and what it looks like now.

EV
Elena VargasCargo Claims Handler · offers to $5,000, denials to $25,000
Cargo Claims Handler
Before
Rebuilds each shipment's history from five systems and a mailbox, then decides liability and writes the letter herself.
Now
Opens a claim already replayed, valued and drafted, asks the agents what she needs to know, and signs with a reason code. “Show me where it went wrong, and I'll tell you what we owe.”
MR
Marcus ReidCargo Claims Manager · to $50,000, every recovery and escalation
Cargo Claims Manager
Before
Signs above the handlers' authority and finds out too late that a handler's dock caused a payout nobody claimed back.
Now
Gets the recovery drafted from the same evidence with its clause and clock, and signs it. “I need the same answer from every handler, at the same limit.”
HK
Hannah KowalskiCargo Quality Manager · root cause and corrective actions
Cargo Quality Manager
Before
Sees the same dock, the same night bank and the same excursion a quarter late, in a BI report.
Now
Gets the pattern with its records and a drafted corrective action request to send. “A claim paid is a lesson missed if the dock stays full.”
DS
Diego SalazarCustomer Service Agent, Cargo · first notice and updates
Customer Service Agent, Cargo
Before
Forwards notices by email; the notice date and the air waybill are argued about later.
Now
Watches the Intake agent fill the claim with a source per field, the check digit and the clock, then opens it. “The customer wants one honest update, not five forwards.”
TB
Tom BeckerAdministrator, Cargo Systems · roles, rules and integrations
Administrator, Cargo Systems
Before
Keeps signing limits and the SDR rate source in documents nobody can trace.
Now
Sets roles, authority, clocks and rules in one place, each change a new version on the audit trail. “If a rule changes, I want it versioned and logged.”
Built on the engine

8 agents. Each with one job, and hard limits.

Eight agents replay the shipment's custody, test liability twice, value it at the limit and draft the letter and the recovery; people sign.

Claim intake agent

Reads emails, portal forms, photos and delivery receipts; matches the air waybill and its check digit, checks who holds the right to claim and the notice clock (14 days for damage, 21 for delay); merges duplicate claims on one air waybill; sends the acknowledgment template.

  • Never decides liability
  • Sends nothing but the acknowledgment template on its own
  • Live animals and suspected theft go to the Claims Manager by rule
Custody replay agent

Rebuilds the journey from status messages, ULD build sheets, warehouse in and out times, CBP releases and logger data; marks who held the shipment when, and names the segment where the loss most likely happened, with a confidence and its reasons.

  • Under the 85% confidence floor, a person decides the segment
  • Never edits a source
Liability agent

Picks the regime by the air waybill routing, applies Articles 18, 19, 22 and 31, and works out the limit on the packages concerned at the dated IMF SDR rate, applying a special declaration of value.

  • Never lifts the cargo limit; only a special declaration of value does
  • Must agree with the Defenses checker
Defenses checker

Tests the carrier's defenses on its own, without reading the Liability agent's view: inherent defect, defective packing by another party, act of war, act of public authority, and the delay excuse.

  • Works independently
  • A disagreement goes to a person, with both arguments
Valuation agent

Values each claimed line from the invoice, survey, salvage and freight terms, marks it offered or not with the reason, and splits interline claims by segment.

  • Never offers above the limit or the proven loss
  • Flags unproven lines and drafts the ask for evidence
Letter writer

Drafts the offer, denial or request-for-evidence letter, one fact per sentence, each cited, and rechecks a person's edits against the file.

  • Sends only after a person signs
Recovery agent

Turns the same evidence into a recovery claim against the ground handler or partner airline under SGHA Sub-Article 8.6, the station's Annex B or the interline agreement, tracks the clock, and says plainly where no recovery lies.

  • Never sends without the Claims Manager's signature
  • Never claims where Sub-Article 8.6 is excluded
Trend analyst

Finds patterns in the year's claims by lane, product, station, handler and hour, and drafts corrective action requests with the records attached.

  • Nothing about a claimant leaves Corvane
  • The Quality Manager decides what is sent
Cargo Claims Manager

Signs above the handler's authority and every recovery. The agents propose; a named person decides.

Ask in plain words

Ask the agents about any claim, in plain words

Ask about a claim, a line or a clause, or tell the agents what to do. Every answer points to its record, and nothing goes out until a person approves it.

Why not the freight?

The air waybill shows the $830 freight prepaid by the shipper, Rosaval Farms. Lakeshore did not pay it, so it is not Lakeshore's loss. If Rosaval claims it, I will look again.

Could the roses have been tired already?

Unlikely. They were accepted at 2.1 °C with no remarks and a phytosanitary certificate. Only the 26 boxes on the dock edge are damaged; the other 20 from the same farm and harvest are sound. The logger stayed between 2.1 and 4.4 °C until 02:10.

What if they send the purchase orders?

If the orders prove $235 a box, the loss becomes 18 × $235 plus 8 × ($235 − $65) = $5,590. That is still under the $10,571 limit, but over your $5,000 authority, so it would go to Marcus.

Why can we claim this back from Coralway?

Annex B MIA §4.2 puts perishables into cold storage within 30 minutes of breakdown; the roses waited 3 h 04 min on open dock P4. SGHA 8.6, kept in that Annex, makes Coralway answer for a loss caused by not following the agreed procedure, up to what Corvane itself owed.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

TodayThe cargo claims handler's day: open claims, paid against claimed, recovered from handlers, the six items that need her and the agents' overnight thread.
The custody replayA cargo damage claim replayed as one line of handling events from BOG through MIA to ORD, with custody bands, the logger trace and the claim pinned to the 02:10 dock event.
The source behind an eventThe handler's cooler capacity log behind the 02:10 dock event: cooler C3 full, no space for the air waybill, its fingerprint, read by the agents and never edited.
Ask the agentsThe liability position, what the agents did overnight, and the conversation where the handler asks why the freight is left out of the cargo claim.
The evidence fileTwenty-four records for the perishable cargo claim, each fingerprinted: the logger chart, the claimant's photos, what is still missing and the reminder.
Liability and valuationTwo agents agree on Montreal Convention liability; the 26 SDR limit on the packages concerned in one sentence; each claimed line offered or not, with its reason.
The cited offer letterA cargo claim settlement letter of 10 sentences, each with its source, and the decision panel with the amount, who signs and the handler's authority.
Approved and sentThe cargo claim settlement sent with its reason code, and the recovery from the ground handler drafted for the Claims Manager to sign.
Recovery from the ground handlerThe claim back from the warehouse handler under Annex B and SGHA Sub-Article 8.6, its clock and the manager's signature.
Trends and corrective actionClaims by lane and product, three patterns the Trend analyst found, and the corrective action request to the handler for the night dock.
IntakeA new notice of damage read by the Intake agent: right to claim, air waybill check digit, the 14-day notice clock and a limit preview, each field with its source.
The audit trailEvery agent step and every signature on the cargo claims, newest first, each with its fingerprint; the chain verified with no breaks.
Roles and signing authorityWho signs offers and denials up to what amount, and what each role also does; agents have no signing authority.
Governance

Air cargo claims management that stays cited, signed and logged.

Every sentence cites its recordEach value and each sentence an agent writes opens its source: the status message, the logger table, the survey, the invoice, the article or the clause. Evidence is fingerprinted when it arrives and never edited.
A person signs, within authorityAgents draft; a person approves, edits or rejects every offer, denial, recovery and corrective action with a reason code. The handler signs offers to $5,000, the manager to $50,000 and every recovery; above that, the Director with Legal.
Two agents must agree on liabilityThe Defenses checker works without the Liability agent's view. When they disagree, or the custody confidence is under 85%, the claim goes to a person with both arguments.
Never above the limit or the proven lossThe limit is worked out on the packages concerned at the dated SDR rate, and only a special declaration of value replaces it. Unproven lines are left out with the reason and the evidence asked for.
A chained audit trailEvery agent step and every signature is logged, newest first, each entry carrying the fingerprint of the one before it, so nothing can be changed or removed unseen. It exports for internal audit as a spreadsheet and a signed PDF.
Claimants stay with the airlineTrends and corrective action requests name handlers, docks and hours, never claimants. The acknowledgment template is the only message the agents send on their own.
Configuration

Your claims policy, as settings

Who signs, the clocks, the thresholds and the liability rules are settings the administrator changes; each change is saved as a new version of the rules and written to the audit trail.

SettingDefaultChoose from
Cargo Claims Handler signsOffers up to $5,000, denials up to $25,000Any amount, in U.S. dollars
Cargo Claims Manager signsUp to $50,000, and every recovery and escalationAny amount; above it, the Director, Cargo Customer Experience, with Legal
Acknowledge a notice within2 business daysAny number of business days
Offer or deny within30 days of a complete fileAny number of days
Small-claim fast track up to$500Any amount; claims at or under it, at invoice value, may be approved in bulk
Custody confidence floor85%Any percentage; under it, a person decides the segment
Cargo limit26 SDR a kilogram for losses from Dec 28, 2024; 22 SDR before; packages concerned onlySet by the Montreal Convention; the SDR rate is the IMF daily rate on the date of the offer
Escalations and lettersLive animals and suspected theft escalate; dangerous goods incidents notify Safety; two agents must agreeEach on or off · letters in Spanish as well as English, on or off
Connections

Air cargo claims software that works with the records a claim already lives in

Cargo management systemair waybills, house waybills and status messages (FWB, FHL, FSU)
Warehouse handler feedsfreight in and out of warehouse (FIW, FOW), ULD build sheets, cooler capacity logs
Temperature loggers and CBPlogger data from the box, CBP holds and releases
Claims mailbox and portalnotices, photos, delivery receipts, invoices and surveys
Agreements and rulesMontreal and Warsaw texts, conditions of carriage, SGHA, each station's Annex B, interline agreements
Accounts payable and the SDR ratepayment of signed offers; the IMF daily SDR rate
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
100%
of offers and denials cite the article, the limit and the evidence
Every letter cited
article, limit, evidence
target
80%
of handler-caused payouts claimed back inside the agreement's clock
Todayrarely claimed
With agents80%
target
3days
to an offer or denial after a complete file, from about five weeks
By hand34 days
With agents3 days

“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution; the five-week baseline is illustrative · “estimated” = our estimate of where a claim's days go · “typical” = published figures (ICAO revised limits under Article 24 of the Montreal Convention 1999 — 26 SDR/kg for cargo from Dec 28, 2024, up from 22, about 18% more; Montreal Convention Article 31 — 14 days for damage, 21 for delay). The Montreal Convention, the Warsaw system, IATA SGHA Sub-Article 8.6 and Annex B are named as context only. Corvane Airways, Corvane Cargo, its handlers, claimants, shipments and the people named on this page are fictional — characters and sample data in the working solution.

Questions

What cargo claims teams ask about air cargo claims management.

What is air cargo claims management?

Air cargo claims management is the airline's work of taking an air freight claim for damage, loss or delay from the first notice to a settlement or denial, and claiming back from the ground handler or partner airline where the loss happened in their custody. Air Cargo Claims Management gives the cargo claims handler eight agents that replay the shipment's custody, test liability under the Montreal Convention twice, value each line at the right limit and draft the cited letter and the recovery; the handler asks them questions and approves, edits or rejects with a reason.

What is the Montreal Convention cargo liability limit per kilogram?

For losses from December 28, 2024 the limit is 26 Special Drawing Rights a kilogram, up from 22. When only part of the shipment is damaged, Article 22(4) uses the weight of the packages concerned, not the whole shipment. In the demo, 26 SDR × 299 kg of the 26 damaged boxes × $1.3598 (IMF, Oct 15, 2026) gives $10,571; only a special declaration of value replaces the limit.

How long does a consignee have to give notice of cargo damage?

Under Article 31, 14 days from receipt for damage and 21 days for delay; without notice there is no action, save fraud. The Claim intake agent checks the clock on every claim. In the demo it flags a salmon claim whose notice came on day 19 of 14, and the handler decides between a cited denial and a goodwill gesture for the account.

Can an airline recover a cargo claim from its ground handler?

Often, under SGHA Sub-Article 8.6 and the station's Annex B, up to what the airline itself owed, and inside the agreement's clock. The Recovery agent drafts the claim back from the same evidence the moment the offer is approved, for the Claims Manager to sign. Where a handler's Annex B excludes 8.6, or the payout is under the agreement's floor, it says plainly that no recovery lies.

How does it find where the loss happened?

The Custody replay agent joins status messages, warehouse in and out times, ULD builds, CBP releases and the logger trace on one time axis and names the custody segment with a confidence and its reasons. On the sample roses claim it is Coralway's open dock at Miami, 02:10–05:14, at 94%. Under the 85% floor, as on a missing-phones claim at 62%, a person decides the segment.

Does the AI decide liability or send letters on its own?

No. Two agents must agree on liability, and a disagreement goes to a person. Agents never offer above the limit or the proven loss, and the acknowledgment template is the only message they send on their own; every offer, denial, recovery and corrective action is signed by a person.

Do people stay in control of settlements?

Yes. The cargo claims handler approves, edits or rejects every draft with a reason code within her authority — offers to $5,000 and denials to $25,000 in the demo. The Claims Manager signs to $50,000 and every recovery, and every step is on a chained audit trail.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your conditions of carriage, signing authority, handling agreements and a sample of past claims — and it goes live once every quality gate has passed. We will walk you through it on your own claims first.

See it on
your claims.

We'll run Air Cargo Claims Management on a sample of your own closed cargo claims, status messages and handling agreements.