Attending the Cargo Claims Loss Prevention Conference was an insightful experience. It was a particular pleasure to meet Mr. Salem Alguthmi, Claims Manager at Saudia Cargo, who was the very first customer to adopt the CargoClaims platform after we received the IATA Cargo Innovation Award back in 2015.

A personal reflection
Around 60 people joined, but surprisingly almost 90% were airline representatives and lawyers. Only two handlers and two forwarders showed up. For a topic that involves the entire logistics chain, this imbalance left a noticeable gap in the discussions.

 

 

A More Realistic View on Claims
It was refreshing to hear some of the leading carriers, Qatar Airways, Air Canada, American Airlines, and AF-KLM, speak more pragmatically about claims. They stressed that they don’t automatically reject a claim just because there’s a clean receipt at delivery. Instead, they look at the facts and circumstances. This more realistic approach feels like a step in the right direction, one that builds credibility and trust with customers.

The Liability Gap in RFS
One of the issues raised was the liability gap in Road Feeder Service (RFS). Airlines remain liable toward their customers for up to 26 SDR per kilo, yet when the damage occurs during road transport, the recovery from trucking companies is typically limited to 8.33 SDR per kilo. This creates a real and ongoing exposure for airlines, and it made me wonder how sustainable this gap is without more alignment between contractual partners.

Shifting Focus to the Importance of Loss Prevention Programs
Another encouraging trend was the shift in focus. Airlines talked less about handling claims purely from a legal or commercial angle and more about investing in loss prevention practices. This is especially important for pharmaceuticals and live animals, where mistakes aren’t just costly, they can be critical. The recognition that prevention is better than reaction felt like one of the most positive takeaways of the event.

The discussions highlighted that loss prevention is no longer a side activity but a central pillar of cargo operations. Building awareness across all stakeholders, and embedding prevention into daily practices, will be key to reducing disputes and improving service quality.

The Potential of AI
Finally, the role of AI in cargo claims and prevention sparked a lot of interest. I could clearly see the potential: real-time monitoring of conditions, predictive analytics to identify weak points, and automated claims assessments that make the process faster and more consistent. AI won’t replace human judgment, but it could free up resources and shift the industry from reactive claims handling to proactive risk management.

Why Handlers and Forwarders Must Be at the Table
Handlers are on the frontline, they’re the ones accepting, storing, and delivering cargo. Their procedures directly influence whether evidence is available when disputes arise. Under the Standard Ground Handling Agreement (SGHA), they can also be held liable for damage caused under their responsibility, so their involvement in these conversations is not just valuable, it’s essential. Forwarders, meanwhile, sit closest to the customers, shaping expectations and documentation. Without both groups more actively engaged, the dialogue risks being incomplete.

Without all stakeholders at the table, however, these solutions will remain incomplete. True progress requires the entire chain to engage, from airlines and lawyers to handlers and forwarders.

Closing Reflection
Overall, the conference left me with mixed impressions. On the one hand, it was encouraging to see progress in thinking from some carriers and clear opportunities emerging with AI to strengthen both prevention and claims handling. On the other hand, the absence of broader stakeholder representation, particularly handlers and forwarders, means that we are still only seeing part of the picture.

The challenges are clear, liability gaps, inconsistent claims practices, and operational vulnerabilities in the supply chain. But the potential solutions are equally visible, stronger collaboration across all parties, wider adoption of preventive measures (especially for pharma , perishables and live animals), and the use of AI to predict, prevent, and streamline.

 

Raoul Paul CEO www.cargohub.nl – www.cargoclaims.aero