Debt recovery for air cargo

A forwarder, ground handler or carrier waiting on an unpaid air cargo invoice is racing a debtor that may already be renegotiating with its own creditors. Debt recovery for air cargo depends less on the outstanding amount than on what the paperwork actually says: the airway bill, the tariff, and the credit terms the parties really agreed. We read that paper before we recommend a route.

What air cargo debt typically looks like

Most files reaching us involve unpaid freight charges on a completed carriage, disputed fuel or security surcharges, or demurrage and storage accrued while a shipment sat on the ramp waiting for collection. A second common pattern is the consolidator that goes quiet mid-chain: the shipper has paid the forwarder, the forwarder has not paid the carrier or the ground handler, and the claim sits between two contracts rather than one. Part-shipment shortfalls and disputed weight or volume charges add a third layer, usually raised by the debtor only after the demand letter arrives.

The debtor is rarely a stranger. It is a repeat counterparty with a credit line, a rate agreement on file, and an incentive to keep trading with someone else while it stalls this particular creditor.

The documents that decide the claim

Before we advise on a route, we ask for the paper that a court or arbitrator will actually read.

A claim with a signed rate agreement and a clean airway bill trail is a different proposition from one resting on an invoice the debtor never confirmed. We say which one a file is before we quote a route.

The defences a debtor usually raises

Four objections recur. The first is a set-off claim for damage or short-delivery, raised only once payment is demanded and rarely supported by a contemporaneous survey. The second is a dispute over how a fuel or security surcharge was calculated, usually defeated by the published tariff in force on the date of carriage. The third is a challenge to which entity is actually liable, agent or principal, which the airway bill and the booking chain generally settle. The fourth is a claim that the debt was assigned or factored and that the debtor no longer owes the claimant directly.

Each of these fails or succeeds on the same evidence: the airway bill, the tariff, and the correspondence trail. That is why the document review comes before the strategy, not after it.

The recovery route in outline

We start with a file review against the documents above and give a written view on strength before any cost is committed. Where the position is contested but the debtor is solvent, a formal demand referencing the airway bill and tariff terms usually opens a negotiation window. Where pre-legal contact is appropriate in the debtor's jurisdiction, that step is carried out by a registered local provider, not by SOLUTIO directly. Carriage liability for loss, damage and delay is governed in many jurisdictions by the Montreal Convention 1999, though most unpaid freight and demurrage claims proceed as ordinary contract claims under the debtor's national law rather than under that convention. Litigation or arbitration follows only if the file justifies it and the client instructs it.

When we are not the right firm

Common questions

Can we recover freight charges without the original airway bill?

A reconstructed record from the booking system and correspondence can support a claim, but it is a weaker file than one with the original airway bill in hand. We tell you which position you are in during the file review, before any cost is committed.

Does the Montreal Convention cover an unpaid freight invoice?

That convention addresses carrier liability for loss, damage and delay, not the carrier's or forwarder's right to be paid. An unpaid freight or demurrage claim is generally pursued as an ordinary contract claim under the applicable national law instead.

What happens if the debtor is a consolidator with no assets in its own name?

We look at the chain of contracts to identify which entity actually owes the money and whether a parent or principal carries any exposure. Where no solvent party can realistically be reached, we say so at the review stage rather than after fees are incurred.

A freight or demurrage balance sitting unpaid on a ramp file does not improve with age: the debtor's accounts payable list gets longer, and the assets that once made recovery realistic have a way of moving to another creditor first. Before that window closes, the airway bill and the tariff are worth reading properly, once, by someone who will say plainly whether the claim justifies the next step.

Request an assessment

By Amara Okafor