Case Reference: #2024-TRANS-0019

Client profile: European freight forwarding company specialising in containerised and break-bulk cargo. Annual revenue €180M. Operations across Mediterranean, North Atlantic, Asia-Pacific, and Gulf shipping lanes.

Portfolio: 23 receivables across 4 shipping lanes and 9 countries. Total exposure: $1,400,000. Average age: 147 days past due.

The situation

The freight industry operates on thin margins and extended payment chains. A freight forwarder arranges transportation on behalf of shippers, advances costs to carriers and port operators, and invoices the shipper. When the shipper doesn't pay, the forwarder is exposed on both sides: they've paid the carrier but haven't been paid by the shipper.

This forwarder's portfolio of aged receivables had accumulated across four shipping lanes, involving debtors in Greece, Turkey, Egypt, Italy, Spain, the UAE, Singapore, the Netherlands, and the UK. The debtors included shipping lines, logistics operators, commodity traders, and freight brokers. Each had a different reason for non-payment, but the pattern was consistent: the forwarder's internal credit team was treated as a low-priority creditor because the forwarder had no enforcement infrastructure.

The triage

We segmented the portfolio by jurisdiction and enforcement potential:

EU jurisdictions (Netherlands, Italy, Spain, Greece): 11 claims totalling $620,000. Fast-track enforcement instruments available. EU cross-border mechanisms applicable for Dutch-domiciled forwarder pursuing debtors in other EU states.

Turkey: 4 claims totalling $280,000. Turkish commercial court system with icra takibi (enforcement proceedings) available. Istanbul commercial courts experienced with freight disputes.

UAE: 3 claims totalling $240,000. DIFC courts for claims with DIFC jurisdiction clauses; Abu Dhabi/Dubai civil courts for others.

Singapore and UK: 5 claims totalling $260,000. Efficient court systems with strong enforcement mechanisms.

Execution

EU cluster: We filed European Orders for Payment on 7 of the 11 EU claims simultaneously. The remaining 4 claims were pursued through national fast-track instruments: decreto ingiuntivo in Italy (2 claims), procedimiento monitorio in Spain (1 claim), and deurwaarder-served demand in Greece (1 claim). We obtained a conservatoir beslag (pre-judgment attachment) on a Greek shipping line's bank accounts in the Netherlands — a cross-border attachment that Greek debtors rarely anticipate.

EU results: $540,000 recovered across 9 claims. Two Greek claims remain in litigation.

Turkey cluster: Our Istanbul correspondent initiated icra takibi proceedings at the Istanbul icra dairesi (enforcement office) on all 4 claims. Turkish enforcement proceedings are notably fast for well-documented commercial claims — the enforcement office can issue payment orders within days and proceed to asset seizure if the debtor doesn't oppose within 7 days.

Turkey results: $280,000 recovered across all 4 claims within 45 days. One debtor paid within 5 days of the enforcement office notification — a response time that suggests the debtor had the funds available throughout the non-payment period.

UAE cluster: Two claims with DIFC jurisdiction clauses were filed in the DIFC Courts. One claim without a DIFC clause was pursued through the Dubai Courts with local counsel. The DIFC Courts produced payment orders within 30 days. The Dubai Courts claim took longer but settled after the debtor received the court notification.

UAE results: $240,000 recovered across all 3 claims.

Singapore and UK: Singapore claims were pursued through the State Courts' simplified procedure. UK claims were pursued through the County Court money claim process. Both jurisdictions produced enforceable orders quickly.

Singapore/UK results: $220,000 recovered across 4 claims. One UK claim was contested and settled at 85% of face value.

Results

Total recovered: $1,280,000 out of $1,400,000 (91.4%). Two Greek claims totalling $120,000 remain in litigation.

Timeline: 78 days from engagement to 91% recovery.

The transportation intelligence note

Freight and transportation receivables have characteristics that make professional recovery particularly effective: the claims are well-documented (bills of lading, delivery receipts, freight invoices), the debtors are commercial entities with identifiable assets, and the industry's interconnected nature means that enforcement against one debtor creates deterrent effects across the forwarder's entire customer base.

The forwarder's CFO reported that within three months of the recovery programme, average payment times across their entire portfolio improved by 12 days. The investment in professional recovery for 23 claims created payment discipline across hundreds of active accounts.

If you're in freight, logistics, or transportation and carrying aged receivables, the industry's payment culture responds to enforcement more than to patience. Brief our transportation recovery team with your portfolio.