Freight Claims Process: Damage Prevention and Resolution

Freight damage and loss create significant costs beyond replacement products including claims processing time, customer dissatisfaction, and administrative burden. Understanding prevention and claims processes minimizes these impacts. Prevention strategies reduce damage frequency. Proper packaging with adequate cushioning, appropriate box sizes, and palletization for LTL protects freight. Quality materials including double-wall corrugated boxes for heavy items, corner protectors preventing crushing, and shrinkwrap securing pallets prevent shifting. Professional loading with weight distribution balancing heavy items on bottom, preventing overhang beyond pallet edges, and proper stacking height avoiding collapse reduces transit damage. Handling labels including "Fragile," "This Side Up," and "Do Not Stack" guide careful handling. Carrier selection choosing carriers with good safety records and appropriate equipment for freight type matters. Inspection procedures catch damage early. Pre-shipment documentation photographs freight and packaging before loading providing condition evidence. Inspection at delivery examines freight immediately upon arrival while carrier is present. Notation on delivery receipt describes any damage on POD before driver leaves, critical for claims. Concealed damage discovered after delivery requires prompt notification to carrier within claim time limits. Claims documentation requirements vary by carrier but typically include original bill of lading proving freight was tendered, proof of delivery showing freight was delivered, damage photos clearly showing damage and packaging, repair estimates or invoices for actual repair costs, and invoice copies showing freight value. Claim filing procedures follow specific timelines. Notice of loss or damage must be provided within 9 months under Carmack Amendment for interstate freight. Formal claims should be filed promptly, typically within 9 months. Supporting documentation must accompany claims or be provided when requested. Claims follow-up tracking claim status and providing additional information as requested. Carrier claims decisions range from full payment covering all claimed amounts, partial payment when carrier disputes some costs, to denial if carrier believes damage wasn't their responsibility. Appeals process for denied or underpaid claims includes reviewing denial reasoning, gathering additional evidence supporting claims, and submitting appeals with strengthened documentation. Negotiation tactics can resolve disputed claims through compromise settling for partial payment when full claims face challenge, bundling multiple small claims into larger settlements, and leveraging business relationships when significant ongoing business volume exists. Claim prevention best practices include accurate freight descriptions on BOLs, declared value stating actual freight value to establish liability limits, photo documentation for valuable or fragile freight, and concealed damage inspection notifying carriers within 5-15 days of delivery. Salvage considerations apply to damaged freight. Carriers typically request salvage (damaged freight) in exchange for payment. Determining salvage value ensures fair settlements accounting for potential recovery. Disposition coordinating removal and disposal of damaged freight. Claim time limits are strict. Notice of loss must be in writing within 9 months for US interstate freight. Claims must be filed within 9 months of delivery or reasonable delivery date. Suits must be filed within 2 years. Canadian interprovincial freight follows similar timeframes. Alternative resolution includes mediation using neutral third parties to facilitate settlements and arbitration having binding resolution through independent arbitration. Freight insurance supplements carrier claims providing coverage beyond carrier liability limits, faster claim processing than carrier claims, and direct payment to shippers rather than waiting for carrier resolution. Common damage causes include poor packaging failing to protect freight, improper loading creating unstable loads, rough handling by personnel at terminals or delivery, and environmental factors including temperature extremes or moisture. Statistical analysis of damage patterns identifies systemic issues including specific products requiring packaging improvement, carrier performance indicating carrier selection issues, and seasonal patterns revealing weather-related factors.