When refrigerated goods face logistical hurdles, the stakes are high, and the financial risks can snowball. This was the predicament faced by our client, a small Bulgarian carrier specializing in refrigerated transport. Tasked with transporting frozen potatoes for a Greek freight forwarder, they encountered a substantial €15,000 claim for allegedly spoiled goods. Here’s how Cargofort turned this logistical and legal nightmare into a landmark resolution—securing a 100% payout from the CMR insurer on a significantly reduced claim while shielding our client from costly legal battles.
The Challenge
The situation unfolded when the frozen potatoes were delivered, and suspicions arose that some cartons had perished due to insufficiently low temperatures. A survey conducted under cargo insurance proved to be vague and poorly documented—a pitfall we encounter all too often in refrigerated transport claims.
Instead of working collaboratively to resolve the matter, the Greek freight forwarder took a hardline stance. They failed to pursue alternative resolutions or provide adequate support, opting instead to escalate with immediate legal threats.
To complicate matters further, the carrier’s CMR insurer outright rejected the claim, citing insufficient evidence to determine either liability or the claim’s value. With mounting pressure from the freight forwarder and a deadlock with the insurer, our client turned to Cargofort for expert guidance.
Cargofort’s Approach
Recognizing Bad Practices and Redirecting the Effort
At Cargofort, we’ve seen it countless times: freight forwarders “lifting their arms up” at the first sign of trouble, leaving carriers to face the fallout. Recognizing this common yet detrimental practice, we bypassed the uncooperative forwarder and went directly to the Cargo insurer. This strategic pivot ensured that the focus remained on resolving the claim efficiently and fairly.
From Rejection to Resolution
Our first hurdle was overcoming the insurer’s outright rejection of the claim. Armed with deep expertise in Bulgarian logistics and CMR insurance law, we scrutinized the poorly drafted survey report and identified critical errors that had undermined the claim. By presenting these findings alongside a clear and precise narrative, we compelled the insurer to reconsider their stance.
Fierce Negotiations and Claim Reduction
Cargofort’s negotiation team worked tirelessly to address the claim’s overinflated value. Through evidence-based arguments and persistent engagement with the cargo insurer’s lawyers, we achieved a 40% reduction in the claim amount. This reduction was pivotal in securing a breakthrough with the CMR insurer, who agreed to cover the entire revised claim—despite their initial rejection.
Avoiding Legal Costs for Our Client
Court battles can drain both financial resources and time. To protect our client from such expenses, we advocated for an out-of-court settlement, demonstrating to all parties the cost-saving benefits of resolution through negotiation. Our efforts not only minimized legal expenses but also expedited the settlement process, safeguarding our client’s operations and reputation.
Successful Outcome
Cargofort’s strategic approach delivered an outstanding result:
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CMR Insurer Payout: The insurer, who initially rejected the claim, ultimately paid 100% of the reduced claim amount.
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Claim Reduction: We reduced the €15,000 claim by 40%, saving our client €6,000.
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No Legal Fees: By securing a settlement without litigation, we spared our client the financial and operational strain of a court case.
Client Testimonial
“Cargofort’s expertise saved us from what felt like an impossible situation. Their ability to overturn a rejected claim and secure a full payout—while shielding us from legal fees—exceeded all our expectations. They truly are the experts.”
Conclusion
This case underscores why Cargofort is the trusted partner for carriers navigating the complexities of refrigerated transport claims. By recognizing bad practices in the industry—like freight forwarders abandoning responsibility—and leveraging our deep expertise in CMR insurance, we not only secured financial relief for our client but also protected them from costly and unnecessary litigation.
Cargofort’s unique ability to turn outright rejections into full payouts is a testament to our commitment to carriers, particularly small and specialized companies who often face the greatest challenges in claims disputes.
Through a combination of legal mastery, strategic negotiation, and a deep understanding of the logistics sector, we continue to redefine what’s possible for our clients. When challenges arise, Cargofort is there to transform obstacles into opportunities—securing not just resolutions but also the trust and confidence of those we serve.
By partnering with Cargofort, carriers gain more than claims resolution; they gain a steadfast ally committed to safeguarding their business and future.