Insights from the Perishables Logistics Africa Conference 2025 | Nairobi

Cargo claims remain one of the most frustrating and misunderstood aspects of international trade — particularly for African exporters of fresh produce. Despite their best efforts to maintain product quality and delivery standards, exporters often find themselves bearing the brunt of losses arising from transit damage, temperature fluctuations, and carrier delays.

This article draws from a presentation by Dr. Lina Jasutiene, Founder and CEO of Recoupex, delivered during Logistics Update Africa’s Perishables Logistics Africa Conference 2025 at the Emara Ole Sereni, Nairobi.

Her session, titled “The Drama of Cargo Claims for African Exporters: Biggest Myths and Costly Realities,” explored how exporters can take control of their claims processes, challenge prevailing misconceptions, and recover genuine losses — often without incurring additional costs.

Understanding the Problem

Cargo claims have long had a bad reputation, primarily because of the many parties involved — shipping lines, freight forwarders, insurers, and buyers. Too often, the burden of proof and financial loss falls squarely on the weakest party in the chain: the exporter.

As Dr. Jasutiene noted, exporters cannot easily influence freight rates or taxes, but they can take charge of two critical areas: their carbon footprint and their cargo claims.

Having served for over a decade as Head of Legal for African Cargo Claims at MSC Shipping Line, she saw first-hand how frequently genuine claims went unrecovered — an experience that inspired the creation of Recoupex, a platform dedicated to helping exporters assert their rights and recover legitimate losses.

The Changing Export Landscape

Global demand for Africa’s fresh produce — avocados, mangoes, pineapples, and cut flowers — continues to grow, driven by younger consumer segments across Europe, the US, and the Middle East. With this growth, there has been a notable shift from air to ocean freight, as exporters seek more cost-effective logistics solutions.

However, this shift brings its own set of challenges:

• High freight costs and persistent equipment shortages

• Transit damage caused by temperature fluctuations and power failures

• Insurance coverage gaps for common perishable risks

• Tightening quality expectations from overseas buyers

The result: financial losses, strained relationships, and declining profit margins — often avoidable with better awareness and documentation.

The Economics of Cargo Claims

The statistics are sobering:

• 1 in 10 containers is damaged in transit

• 8 out of 10 claims are rejected by carriers

• Of the claims that are settled, payouts often represent only 15% of the original loss value

For exporters, this can mean the difference between profit and loss. A single container of spoiled mangoes worth USD 25,000–30,000 can wipe out an entire season’s margins.

Beyond the immediate loss, brand reputation and buyer trust are also at stake.

Prevailing Myths and the Realities Behind Them

Myth 1: “I have insurance.”
Most fresh produce policies exclude core risks such as power malfunctions, temperature deviations, and delay damages. Even premium policies often include restrictive clauses. Increasingly, exporters are opting to recover losses directly from carriers instead of relying solely on insurers.

Myth 2: “The claim amount is too small.”
Whether the loss is USD 1,000 or USD 3 million, the process is the same — and every claim builds institutional knowledge and documentation discipline.

Myth 3: “If I claim, the carrier will blacklist me.”
This misconception keeps many exporters silent. Shipping lines need cargo volume; genuine claims do not threaten relationships. Only fraudulent misdeclarations could trigger exclusion.

Myth 4: “The carrier is investigating — I just need to wait.”
Prolonged patience often results in claims expiring under the time-bar rule. Nearly 95% of claims fail simply because exporters lack a proper follow-up system.

Winning Cargo Claims — At No Cost

Dr. Jasutiene emphasized a simple truth: to succeed, exporters must prove that the cargo was in good condition at origin and arrived damaged at destination.

This requires disciplined, evidence-based documentation:

• Pre-shipment surveys — record temperature, quality, and loading conditions through photos or video.

• Post-shipment inspections — capture temperature logs, damage photos, and buyer statements.

• Standard templates — use consistent reporting formats for every shipment.

• Claim culture — treat claim recovery as part of business sustainability and profitability.

Every successful recovery strengthens the exporter’s systems and bargaining power — turning losses into learning opportunities.

Why Inaction is Costly

Failing to claim has broader consequences:

• It saves money for liable carriers who should have compensated losses.

• It signals complacency, inviting less diligence from service providers.

• It reduces visibility into logistical performance and risk hotspots.

• It undermines future claims, as experience and precedent are never built.

Ultimately, as Dr. Jasutiene put it, “Claiming is not confrontation — it’s accountability.”

Empowerment Through Knowledge

The Recoupex’s mission is clear: to empower exporters to recover genuine losses, reinvest in their communities, and strengthen Africa’s global export competitiveness. Training, awareness, and documentation discipline form the foundation of that empowerment.

At Specialty Claims Academy (SCA), we share this vision. Our technical development programmes for insurers, surveyors, and exporters emphasize claims documentation, risk communication, and cargo loss investigation, enabling stakeholders to navigate global logistics with confidence and competence.

In line with this commitment, SCA is pleased to announce a new training partnership with the Maritime Training Academy (MTA) — a UK-based institution offering globally recognized professional courses in marine and technical disciplines.
Through this collaboration, SCA will extend a 5% discount on selected MTA short courses to professionals and organizations within its network across Africa.

This partnership arrives at a pivotal moment, as Kenya’s insurance and risk professions undergo significant transformation. The IRA/KRA Directive on Marine Cargo Insurance (2025) now requires importers to insure goods through locally licensed insurers, while the Insurance Professionals Act, 2025 introduces mandatory Continuous Professional Development (CPD) for practitioners.

These developments underscore the urgent need for structured, specialized training in marine insurance, risk surveying, and claims management — areas where MTA and SCA bring strong, complementary expertise.

📧 training@specialtyclaims.co.ke
🌐 www.specialtyclaims.co.ke

Author:
Fredrick A. Oloo
BCom (Ins.), Dip CII, Dip CILA
Lead Trainer & Director – Specialty Claims Academy (SCA)

( Also: Managing Director – Niche Loss Adjusters & Marine Surveyors Ltd
Council Member, Institute of Loss Adjusters & Risk Surveyors (IARS – Kenya)
Member, Chartered Institute of Loss Adjusters (CILA – UK)’s Future Focus Committee))