Settlement Management

Settlement Management is a core process in foreign trade for handling customer claims, insurance claims, or compensation for transport losses. It involves investigation, negotiation, and compensation for issues such as cargo shortage, damage, delayed delivery, or letter of credit discrepancies. Use cases include: buyers raising quality objections to sellers, carriers claiming against insurance companies, or banks handling letter of credit disputes. Precautions: collect evidence promptly (e.g., inspection reports, photos, bills of lading), clarify the responsible party (seller, carrier, insurance company), and comply with the claim time limit stipulated in the contract or letter of credit (usually 30-60 days after cargo arrival). Difference from other terms: Settlement Management focuses on post-event dispute resolution, while 'Dispute Management' is broader and includes arbitration and litigation; 'Insurance Claim' only targets insured losses. Effective settlement management can maintain customer relationships and reduce bad debts, but it is necessary to balance cost and reputation and avoid excessive compromise.