Executive Summary
Wealmoor Ltd sued KLM for damage to 500 boxes of fresh green asparagus shipped from Lima to London Heathrow under AWB no. 074-37845220. The claim, under article 18(1) of the Montreal Convention 1999, alleges KLM’s liability for cargo deterioration during air carriage. KLM denies liability, citing no material event causing damage and excusing responsibility due to inherent cargo defects or defective packing by third parties. Expert evidence confirmed asparagus was delivered to KLM in sound condition and packed properly. The dispute centers on temperature control during transit, particularly exposure to ambient temperatures during warehouse and ramp handling, and whether this caused irreversible deterioration.
Sanctions Highlights
— No sanctions implications identified in this case.
Emerging Risks
- Perishable cargoes like asparagus are highly sensitive to temperature fluctuations; exposure to ambient temperatures during handling poses a risk of accelerated spoilage.
- Ambiguities in carrier temperature control obligations during non-flight phases (warehouse, ramp) create liability uncertainties.
- Increasing reliance on temperature-controlled logistics services ("Fresh+2+8") demands clearer contractual standards and monitoring to mitigate spoilage risks.
Geopolitical Impact
- The case involves multiple jurisdictions and actors: Peru (origin), Netherlands (carrier KLM), UK (destination and litigation forum), and EU regulatory frameworks.
- The Montreal Convention 1999, incorporated into UK law, governs international air carriage liability, reflecting harmonized global legal standards.
- The dispute highlights the role of European carriers (KLM, Martinair) in global fresh produce supply chains linking South America to Europe.
- The case indirectly touches on trade relations and logistics dependencies between South America, Europe, and potentially other global markets (notably the UK post-Brexit).
Economic Intelligence
- Fresh produce air freight is a high-value, time-sensitive sector; damage claims, even modest, can impact carrier reputations and insurance costs.
- KLM’s “Specialized Fresh+2+8” service targets temperature-sensitive perishables, a growing market segment requiring precise handling to maintain product quality.
- The case underscores the economic importance of maintaining cold chain integrity to prevent losses and disputes.
- Logistics providers face commercial pressures balancing operational practicality (shared cargo holds) with optimal temperature requirements.
Strategic Recommendations
- Carriers should clarify and document temperature control obligations during all handling phases, including warehouse and ramp, to reduce liability exposure.
- Implement real-time temperature monitoring and data logging throughout the supply chain to provide objective evidence in damage disputes.
- Shippers and carriers must negotiate explicit contractual terms addressing permissible temperature deviations and handling protocols.
- Legal teams should monitor evolving interpretations of Montreal Convention article 18 regarding carrier liability for perishable goods.
- Stakeholders should invest in training and infrastructure to minimize ambient temperature exposure during non-flight handling.
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**Source Notes:**
Case Title: *Wealmoor Ltd v KLM CIA Real Holandesa De Aviacion & Anor [2025] EWHC 1706 (Comm)*
Link: https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1706.txt