Compensation Triggered by Incomplete Payment for Air Freight Credit Term; Accurate Payout Following Platform Review

[Risk Case] Compensation Triggered by Incomplete Payment for Air Freight Credit Term; Accurate Payout Following Platform Review

Case Overview

In December 2024, JCtrans member DWC Overseas accepted a freight forwarding order from UCA LOGISTICS and agreed to an air freight shipment from Madrid (MAD) to Muscat (MCT). The shipment consisted of general cargo, with freight terms set to Prepaid (PP), and the scheduled departure date was December 7, 2024.

According to their agreement, the invoice was issued on the same day, with a payment term of 30 days (due by January 6, 2025).

However, by April 2025, the client UCA LOGISTICS had yet to fulfill the full payment obligation. On April 11, DWC Overseas formally submitted a Cooperation Risk Protection claim through the platform.

Evidence Chain Review

· The MAWB clearly identifies the shipper and consignee, and the transit time was normal.

· Billing and email records between the two parties confirm the amount due and the agreed payment arrangement.

· The platform reviewed the fee breakdown and confirmed that the customs clearance fee should be calculated based on the originally quoted EUR 39.

· The debtor had paid EUR 6,000, leaving EUR 7,994.0 as the outstanding valid debt.

Platform Conclusion

Based on the verified evidence, the JCtrans Risk Management Expert team confirmed the following:

· The total payable amount was EUR 13,994.0, composed of several standard service charges (such as air freight, customs clearance, pickup, wooden crate fees, etc.). UCA LOGISTICS is required to make full payment.

· The debtor paid EUR 6,000.The remaining balance is a valid claim. Despite multiple payment reminders, the debtor failed to settle the outstanding amount.

· The platform imposed a suspend and blacklist penalty on UCA LOGISTICS. Companies blacklisted by the platform are considered untrustworthy within the industry and are no longer allowed to conduct business with other platform members.

· The platform activated the Risk Cooperation Protection mechanism and made an advance compensation payment of EUR 7,994.0 to DWC Overseas. The case has been officially closed.

This case demonstrates the platform’s strong commitment to protecting member interests and its strict accountability and disciplinary measures against defaulting and untrustworthy parties, ensuring that the risk control system remains efficient, rigorous, and trustworthy.

Case Analysis & Risk Mitigation Advice

While this case involved a standard air shipment, it exposed several key risk points worthy of close attention by platform members. Based on the findings, JCtrans provides the following Risk Mitigation advice:

Before Cooperation: Establish a Transaction Safety Net

· Use Credit Assurance Orders as the default payment method: Especially for first-time or short-term partners, payment and performance linked through the platform’s escrow system significantly reduce bad debt risks.

· Agree in advance on payment terms and overdue liability: Confirm payment deadlines and default clauses via email or contract before shipment.

During Cooperation: Retain Key Evidence

· Keep formal quotes and corresponding invoices: Ensure transparent cost breakdowns and accuracy to support platform intervention in case of disputes.

· Regularly update reconciliation records: Send reminder emails before due dates and properly save evidence of payment commitments and related communication.

After Cooperation: Act Timely to Protect Interests

· Initiate collection efforts and claim submission promptly after due dates: Claims must be filed within 90 to 150 days from the B/L issuance date. Delays may result in missing the valid claim window.

· If the debtor only settles part of the payment, you may still apply for Risk Cooperation Protection for the outstanding amount in order to safeguard your rights and interests

Additional Advice

· Small debts also deserve attention: Tolerating overdue payments for extended periods can lead to accumulated systemic bad debt risks.

Conclusion

This case reaffirms the importance of maintaining a clear evidence trail and managing payment term timelines as key strategies for securing international business.

JCtrans remains committed to providing every member with neutral, fair, and efficient risk control services, helping you navigate complex global cooperation with confidence.

If you encounter any credit risks or payment concerns during your operations, feel free to contact the JCtrans Risk Control Specialist for one-on-one professional advice.

 10 years of membership without a dispute is how to prevent and control risks.-JCtrans Risk Control Guideline