Receiving an email or phone call from an upset customer about damaged freight is never a positive experience. Whether the damage occurred in transit, due to poor packaging, erratic driving, or other sources outside of your control, freight damage can cause more than just upset customers. Many shippers believe that a freight claim is intended to solely recover losses from the damage – but does not always cover additional lost revenue. However, there are times and specific types of freight claims that can cover these ancillary expenses.
In the information below, we’ll outline some of the facts
about freight claims, and introduce 4 of the most common freight claims that
are submitted by shippers – that may help them recover lost revenue due to negligence
Officially, a freight claim is defined as a legal demand submitted by a shipper or a 3PL on their behalf to a carrier for financial reimbursement on the loss or damage of a shipment. In some instances, a freight claim is also referred to as shipping claims, cargo claims, transportation claims, or loss and damage claims. The intent of a freight claim is to have the carrier resolve the matter to the point that the initial terms noted on the Bill of Lading has been fulfilled. A freight claim is intended to recover loss – not to reimburse lost profits – however, there are some exceptions to this general rule.
While the freight claim is intended to recover damages, some shippers go the extra effort by protecting their products with freight insurance. The problem is that there are no policies or standard policies that a carrier can secure due to the Carmack Amendment or common law. Due to this fact, it’s vital for shippers to clarify with their carriers about the extent or level of insurance protection they hold.
In recent years, shippers have been filing four specific
types of freight claims more frequently than others. Those four freight claims
include the following:
With each of these common freight claims, the key is to
ensure each shipment is accompanied by proper and accurate records about the
movement and receiving of a shippers products. It’s also important for receivers
to take the time to open and inspect the freight – to discover hidden damage,
and have the driver notate this on the Bill of Lading or proof of delivery
slip. By taking these simple actions, a shipper can expedite the filing of freight
claims and ensure timely fulfillment.
One way that a shipper can reduce the headaches of having to
complete these type of freight claims is trusting an experienced 3PL to manage
their logistics and supply chain functions. Professional third-party logistics companies
understand the complexity of filing freight claims, but also know the secrets
to reducing damage by proper packing, loading, and working with experienced and