Accidents can still happen even with the best shipping partners and the most careful handling. When a shipment is lost, damaged, contaminated, or delayed, a freight claim must be filed. The freight claim process is how a shipper or consignor claims the value of compromised freight. Managing freight claims may sound intimidating, but with the correct information, freight claims can be handled, and business can continue smoothly. In this guide, we explain the steps to handle freight claims efficiently and properly.
1. Inspect the Freight Upon Arrival
The only way to know if a claim is necessary is to inspect the freight. The freight must be inspected when it arrives at the destination. It is crucial not to assume that everything is intact and send the carrier away. If the cargo is compromised, it is crucial to identify and document the issue immediately upon arrival. The recipient must check for damages and shortages and compare the bill of lading with the cargo present. If there are any issues, take photos and document the issue on the bill of lading. If the recipient waits to inspect the freight, any issues will not likely be eligible for a freight claim.
2. Keep the Freight
If a consignor receives damaged freight or an unexpected partial delivery, it is best practice to pay the delivery charges, document the issue on the bill of lading, and keep the freight. Even if the freight is badly compromised, do not discard the freight until the claim has been resolved. The compromised freight is evidence for the claim. The consignor may be required to return the freight, so it is important to store it until a settlement is reached.
3. Mitigate
An important aspect of freight claims is mitigation from all parties involved. Both the carrier and shipper must do everything they can to mitigate the loss and reduce the impact of a claim. This includes acknowledging the part of a shipment that is unharmed.
4. Pay the Freight Charges
Even if a claim will be filed, it is important that the shipper pays the freight charges when they are due. Doing so is part of the good faith agreement and will aid in the claim process. If the freight charges are withheld, filing the claim will be difficult. The freight charges can be added to the final claim and returned to the consignor if necessary.
5. Use the Bill of Lading
The bill of lading is a legally binding agreement between the shipper and carrier that serves as the title for the goods. It documents the shipment and receipt of freight cargo and includes special instructions and tracking information. Shippers and carriers must understand and reference the bill of lading because it is essential to any claim. If a cosigner or receiver sees any issue upon receipt, they must inform the carrier. The carrier must make a note of any issues on the bill of lading and sign it to verify the documented status.
6. Take Action Immediately
Freight claims are time-sensitive and must be handled immediately. If there is a time delay, any issues with the freight are likely ineligible for processing as freight claims. Once the consignor receives the freight, it is their responsibility. Any issues must be adequately documented upon receipt and processed immediately.
7. Know the Maximum Liability Amount
The maximum liability amount allowed for a freight claim varies by country. It is also affected by factors such as the type of goods, the carrier, and the cargo volume. It is essential for all parties involved to understand the maximum liability amount for each shipment so that there are no surprises if an accident occurs.
8. Partner with a Quality Logistics Provider
The best way to navigate claims is to work with a trusted logistics provider.
First Star Logistics is a unique asset-based global brokerage company with over 60 years of experience. We take great pride in meeting the needs of our customers, carriers, brokers, and agents. For our customers, we understand that efficiency, safety, and reliability are crucial. We use fast, cutting-edge technology to ensure a satisfactory experience with our specialized shipping services. We support our carriers with the technology, management, resources, and support they need to ensure safe, on-time delivery for shipments. We provide our agents and brokers with a dedicated management team and proprietary software that empowers our employees to succeed.
To work with First Star Logistics, contact us today!