freight claims
WHAT IS A FREIGHT CLAIM?
A Freight Claim is a demand by a Shipper or Consignee of a carrier for reimbursement of an overcharge, loss, or damage to goods during transport.
Although, the Shipper / Consignee may file a claim for any damaged or lost product, what you are actually paid out may greatly differ from the full value of your goods as carriers will only payout based on their Maximum Liability Terms. This can range from $100 per shipment for most Couriers whereby LTL Carriers' terms may range from 10 cents up to a maximum of $2 per pound. Purchasing additional cargo insurance at the time of booking your shipment will ensure your shipment is covered for the full value (minus the deductible).
Firstly, confirm that the goods are insurable. Secondly, be aware of what documents and measures are required. Researching ahead of time will ensure you are not faced with any unpleasant surprises and are prepared with what needs to be provided to ensure a quicker freight claim resolution.
Please note that claims go through a processing period that can range from up to 120 days on average but this can be longer if all the information is not submitted in a timely manner.
HOW TO SUBMIT A FREIGHT CLAIM
Book-A-Load Logistics will submit the claim on your behalf and handle communications with the carrier. Please immediately advise our Customer Service Team of any damages and/or losses via email at claims@bookaloadlogistics.com
What Do You Need to Submit a Claim?
- Sales / Purchase Invoice of damaged item(s). If the shipment contained multiple items with loss or damage, a detailed breakdown with the value associated with each item will be required. This can also be noted or highlighted on the cost invoice that is uploaded.
- Photos of the damaged package (before and after unpacking).
- Photos of the damaged product itself.
- Photos of how the shipment was packaged before shipping (if available).
- A detailed description of loss or damage including the value of the claim must be provided.
WHAT ARE THE Different Types of Freight Claims?
DAMAGE
DAMAGE
DAMAGE
Your pallet may be transported from multiple trucks by multiple forklifts through multiple terminals. Due to this, your palletized inventory could be prone to damage in the transit process. Though this is something that can happen, it is advised to ensure that all the necessary steps are taken to properly package your pallet. After you have palletized your shipment, ensure you take a picture of it before you send it out (with the shipping label). This will help you if and when you have to make a claim as proof of the condition the shipment was in before it was picked up or for the carrier to identify the goods in the case it is misplaced / lost.
LOSS
DAMAGE
DAMAGE
If you have not made any address errors on your Bill of Lading (BOL) but you have passed your delivery date and your shipment has still not been delivered, your shipment may be lost. The best steps are to contact our Customer Service Team to begin an investigation with the Carrier. Once the investigation period has concluded and the Carrier advises to proceed with a claim, our team would then be able to update you to get the process started as soon as possible.
SHORTAGE
SHORTAGE
SHORTAGE
Shortage Claims are filed when some of the products are lost in the shipping process. However, what is vital in the shortage claim (as it is in the damage claim), is that you must note the discrepancies on the carrier’s delivery receipt. It is one of the necessary documents you will need to make your claim. If you are the Shipper of the product, it is best practice to let your Receivers know to always inspect the shipment for damage or shortage before signing off on the POD.
CONCEALED
SHORTAGE
SHORTAGE
Concealed Damage /Shortage is the trickiest claim that you will have to make and is ultimately subject to the carrier's discretion to accept a claim or not. The issue with this sort of claim is that you may sign off on the POD without knowing that some of your products were damaged or missing from the shipment. Due to this, you may not be entitled to the claim amount you would get if this was noted on the POD. We advise that you make sure that all your products are in good order before you sign a POD. Though this may be time-consuming, our years of industry experience have proven this is a worthwhile practice, especially for higher-value shipments.
Recommendations:
- Ensure your shipment meets the packaging guidelines of the carrier otherwise your claim may be denied due to insufficient packaging.
- Do not use old or previously used boxes to ship your goods as this would be grounds for a claim to be denied due to improper packaging.
- Take a picture of your package or pallet with the shipping label attached before it ships out. This will help in case your shipment gets lost / misrouted to help locate it faster but is also very beneficial to include in a claim as it shows how the package looked when it shipped out and can be compared with the pictures on delivery.
- Report any damages or loss as soon as possible following delivery to ensure the carrier will accept the claim.
We hope this brief overview of a Freight Claim, how to submit one, and the different types of freight claims has helped you in your shipping journey. Please remember that insurance / claims differ from carrier to carrier and product to product. Ensure you are informed and have done your research about your products, the carrier you are shipping with, and insurance limitations / deductibles to make sure you are covered.
We understand that determining the coverage and policies of different carriers can be a time consuming and overwhelming process. Our Team of Professional Experts will help make the process simple and manageable.