In this article, learn about:
Why you should inspect shipments before signing
How to ensure your shipment is properly covered
How long does it take to resolve a freight claim?
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Understanding Freight Shortages, Damages, and Claims
When freight shipments are in transit, shortages and damages are inevitable—even with the best carriers. It’s simply part of the business when large volumes of freight are constantly on the move. When this happens, filing a claim for compensation requires the same level of attention and supporting evidence as disputing a reclassification or reweigh.
Filing a freight claim is much like presenting a case in court—the same principles of documentation and procedure apply. While it is possible to receive a favorable outcome, success depends on following the proper claims process just as you would when disputing a charge.
Why You Should Inspect Shipments Before Signing
One of the biggest mistakes that can instantly invalidate a freight claim is failing to note shortages or damages on the Bill of Lading (BOL) or Proof of Delivery (POD) when accepting a shipment.
What Happens If You Sign a BOL Without Inspecting?
When the carrier arrives with the freight, the consignee signs the BOL or POD without inspecting the shipment, and the carrier departs. It is only after the fact that the consignee discovers shortages or damages. On the other hand, issues can also arise at pickup if the driver is not instructed to sign the BOL and record the pallet, carton, box, or case count as listed. However, the most common reason claims are denied before they even begin is a failure to notate shortages or damages at the time of delivery. If the consignee does not document these discrepancies upon receipt, nearly all claims filed under these circumstances are automatically denied.
The only recourse in this situation is to immediately notify the carrier after delivery and request an inspection. The carrier must send a representative to assess the freight and determine whether the damage or shortage occurred during transit. This must be completed within three business days of delivery. If damages or shortages are noted on the BOL at the time of delivery, the consignee has up to eight months to file a claim.
Related Reading: What is a Bill of Lading (BOL)?
Ensuring Your Shipment Is Properly Covered
When quoting a shipment and preparing your Bill of Lading (BOL), you will be prompted to state the insured value of your shipment. Keep in mind that this refers to the replacement value, not the retail price.
Before your shipment is dispatched, Ship Customer Support will review the insured value and verify that the selected carrier has a corresponding level of liability insurance to cover the stated amount. If the carrier’s liability coverage is insufficient, Ship Customer Support will promptly notify you and recommend an alternative carrier with similar capability and transit time but with the required level of liability insurance.
However, selecting a carrier with higher liability coverage may increase shipping costs due to the additional insurance required. If no carrier meets the necessary coverage requirements, Ship Support can purchase third-party insurance on your behalf to ensure full protection. Most shipments can be insured for approximately $25-$50, depending on the coverage amount needed. Additionally, some shipments may be subject to a deductible.
Liability Limitations
A carrier’s tariff may limit liability coverage under the following conditions:
Volume Shipments
Improperly packaged goods
Internet auction items
Used or reconditioned items
Furniture
Items of extraordinary value
Freight with packaging that exceeds 10 feet in length, width or height
Items that require prior written approval by the carrier
Proper packaging is critical and a carrier may not be liable for cargo that is not properly packaged. Goods should be packaged in accordance with NMFC packaging rules for commodity and packaged in accordance with industry standards to withstand the rigors of transportation.
Related Reading: What is an NMFC Number?
How to File a Freight Claim
Once you have confirmed that a shipment was damaged or shorted, and you have gathered all necessary documentation—including a signed Bill of Lading and Proof of Delivery, photographs, proof of commodity, and any other supporting evidence—Ship Customer Support will guide you through the claims process.
How Long Does It Take to Resolve a Freight Claim?
Once your claim has been filed be prepared to play the waiting game because it can take a while. A higher rated carrier will often acknowledge and resolve a claim within a period of 30 to 60 days. A lower rated carrier can take up to 120 days to acknowledge that a claim has been filed and at that point getting a resolution on a claim can take up to a year. Choosing a carrier is an important decision and extends further than just transit times.Schedule a meeting
Get Insight with SupplyPike's Software
SupplyPike helps Walmart suppliers get paid and get better. Our software tests the validity of deductions, collects proof documentation, and takes disputing a claim down to a few (or zero) clicks.
Our software also helps suppliers avoid fines by digging into root cause analysis and providing executive-level oversight into the supply chain. For further information or assistance with managing deductions and disputes, contact SupplyPike's support team.
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