The occurrence of logistics service failures results in poor service quality and decreasing customer loyalty. It is imperative for international freight forwarders to decrease logistics service failure events to sustain customer loyalty. This study aims to identify the crucial logistics service failure management capability for Taiwanese international freight forwarders by employing Analytic Hierarchy Process (AHP) technique with questionnaire survey. A research framework including four key dimensions of capability and sixteen capability attributes is proposed based on literatures review and interviews with experts. The results of AHP analysis indicate that core logistics operational capability is perceived as the most important capability dimension for Taiwanese international freight forwarders when building service failure management capability, followed by risk management capability, supply chain integration capability, and human resource management capability.