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Compass Management Corp.
4900 Hopyard Rd. Ste 100
Pleasanton, California 94588
Tel: 1-866-755-0558
Fax: 1-866-755-0559
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To locate the cargo carrier's rule for loss and damage claims, the claimant should look to 3 basic sources:
(1) air waybill;
(2) air service guides; and/or
(3) air cargo tariff.
The air waybill (MAWB or HAWB) is issued to the shipper; however, the service guides and tariffs can be requested directly from the direct/indirect carrier. They often contain valuable information not set forth on the air waybill. |
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| These same rules apply for the house air waybill (HAWB) of the indirect air carrier, i.e. the airfreight forwarder or air forwarder. Remember, to the actual air carrier, the indirect air carrier (airfreight forwarder) is the shipper and receives its AWB when cargo is tendered. The actual shipper receives the HAWB of the indirect air carrier/air forwarder. When an HAWB has been issued by the air forwarder, the direct carrier's bill becomes known as an MAWB or master air waybill. |
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The following is a general outline of the various rules each domestic air carrier follows for cargo loss & damage claims:
1. Written Notice. All notices of claims and supporting documentation must be WRITTEN. Any WRITTEN notice of claim should be sent by either certified or registered mail, return receipt requested or via courier to the carrier.
2. Content of The Written Notice. There are no statutory requirements for written notices of claim. Nevertheless, a claimant's notice should include: |
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Name of shipper; |
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Name of consignee; |
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AWB or HAWB number; |
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Flight number & carrier name; |
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Date shipment was delivered to the air carrier; |
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Place where the shipment was delivered; |
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Port of departure; |
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Destination port; |
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The description of goods shipped; and |
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A brief description of the goods lost or damaged as well as value, if known. |
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3. Content of Claim. Following written notice of claim to the carrier, a formal written claim with supporting documentation must be provided. Certainly the notice and the claim can be combined. The domestic air carrier (or indirect air carrier/FF) will require verifiable documentation supporting the claim, such as a survey/inspection, commercial invoices, etc.
4. Time Limits. Domestic air carriers require the claimant to provide WRITTEN notice of claim & formal WRITTEN claim within a time period mandated by the AWB/HAWB, etc. For example, on domestic moves many air carriers require claimants to submit WRITTEN notice of claim within 15 days from delivery in the case of cargo damage, delay or shortage. Many air carriers also require claimants submit verifiable documentation supporting a written claim of loss & damage within 90 days after written notice of the claim was received. If a claimant misses the deadline for filing loss & damage claims in domestic air moves the carrier may move under contractual provisions of its AWB (or HAWB of the indirect air carrier/air forwarder) to deny the claim.
International air carriers must follow notice requirements of Warsaw. Art. 26 (3) of the Convention requires that every complaint must be made in writing and sent within the time limits. For International air carriage, according to the Warsaw Convention Art. 26 (2) the time limits are seven days from the date of receipt in the case of goods or in the case of delay complaints for delay must be made within 21 days from the date the cargo was placed at the persons disposal of the person entitled to delivery. No time limit is specified by the Convention for loss, however, some courts have held that the carries tariff, usually 120 days, controls. It is recommended that written notice be given as soon as possible.
5. Written Notice to The Cargo Underwriter: If the shipment was covered by air cargo insurance, you must notify the cargo insurance underwriter of the claim IMMEDIATELY. If you are to recover under the subject policy of insurance, the underwriter requires that YOU take ALL required steps to preserve claim against the carrier/indirect carrier in order to protect its rights of subrogation. |
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1. U.S. Domestic Air Carriage: Governed by air waybill, common provisions are: Damage Limit: Typically $0.50 per pound.
2. International Air Carriage:
A. Governed by Warsaw Convention: Damage limit: US$9.07 per pound/$20.00 per kilo for all damage.
B. Governed by Warsaw Under Montreal Protocol 4: Damage limit: 17 SDR per kilo for all damage. |
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