Damaged Freight – What Should I Do?

Some important steps that you should take if your freight arrives with visible damage are: 

• Always accept the freight
• Document the damage on the delivery receipt – the more detail, the better
• Take pictures of the packaging and of the damaged freight
• Do not destroy the freight – it must be kept until the claim is closed
• Notify your claims personnel

Claims Filing – What Do I Need?

The information that is required and why: 

• Carrier & Pro # - the shipment has to be identified
• Commodity – what is damaged
• Commodity weight – tariffs have a $25 released value per package weight, not per piece weight – if your claim is for $1500 and the package weight is 10 lbs. then the carrier can claim excessive value and pay only $250*
• Value of the item – original purchase invoice is needed to support this
• Dollar amount of claim – how much are you claiming
• Location of freight – carriers will often pick up the damaged freight for salvage

Supporting Documentation 

• POD – signed with damage noted
• Pictures of damaged packaging & damaged freight
• Original purchase invoice
• Repair or replacement invoice if applicable – must be itemized

If the required information is not submitted when a claim is filed, the carrier will have to request it. Each time they have to request additional information it will delay the claim settlement. With the right documentation it is possible to have a claim submitted and paid within two or three weeks. It doesn’t happen all of the time, but it can happen.

*Excerpt from a claim denial:

Upon investigation of your claim we find what appears to be a cost factor of excessive value. The weight is approximately .18 pounds. With the claimed value of the carton, this equation is an amount exceeding $25.00 per pound. Our tariff, Item 108, Section 7, holds that articles tendered with an invoice value exceeding $25.00 per pound per package will be considered extraordinary value and will be considered to have been released by the shipper at $25.00 per pound per package.

Claims Filing – Concealed Damages

One of the most critical errors when filing a claim for concealed damages is late filing. The claim must be filed within 5 business days unless the freight is moving via water, then it is three (3) days. For ocean it is calendar days, not working days. There are carriers who will process the claim even if it’s late, but they are the exception. As carriers search to find more ways to cut cost, rejecting claims helps the bottom line.

When submitting a concealed damage claim you may not have all of the information that you would normally send when filing a claim, but send as much information as you have; the carrier name and pro#, the BOL, pictures of the damage and the $ amount of the claim. The additional documents will have to be sent as soon as possible, but the claim can be filed. 

Allyn Contributor: Pamela Leever

 

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, FL U.S.A, Shanghai, P.R. China and Prague, Czech Republic. For more information, log on to www.allynintl.com.