Global supply chains are more complex than ever. Each segment must be synchronized in lockstep with one another, for everything to run smoothly, which it does for the most part. But when the system falters, what happens next? How do you address shipping damages and recover losses? In this installment of Freight Talk with Zander, we’ll break down the claims process for both LTL freight and small parcel shipments, highlighting what you need to know and do when things go wrong. Let’s dive in.
LTL (Less-than-Truckload) Shipping Claims
In our last post, we unpacked the LTL process and how freight moves through multiple hubs before reaching its final destination. A key component in this process is the bill of lading (BOL)—a contract between the shipper, receiver, and carrier that verifies the transfer of goods in good condition.
Here’s how the process works:
1. From Shipper to Carrier: The shipper provides goods to the carrier and signs the BOL, agreeing that the items are in good order.
2. From Carrier to Receiver: The carrier agrees to transport and safeguard the freight in transit. Upon delivery, the driver asks the receiver to sign a delivery receipt, confirming the freight’s condition.
Not so fast! Before signing that receipt, pause for a moment:
• Inspect the freight: If you notice visible damage, take photos immediately.
• Document the issue: Note any damage on the delivery receipt before signing and keep a copy (or take a photo of it).
• Communicate promptly: Report the damage to the shipper, including photos and a count of the damaged items.
Who is Liable, and Why?
The Carmack Amendment, introduced in 1906, provides a standardized framework for freight claims, ensuring accountability in the shipping process. Here’s what it means in practice:
• Protects Shippers (Carrier Liability): Carriers are responsible for damages while goods are in their custody.
• Uniform Standards: A national standard applies, regardless of the carrier’s policies.
• Proof of Damage (Framework of Liability): To hold the carrier liable, the shipper must prove that they tendered the property to the carrier in good order.
At Zia Pia, we photograph every pallet before it leaves our warehouse—a practice we highly recommend for anyone shipping freight. If the shipper can prove the freight was intact at pickup, and the receiver can prove it was damaged before delivery, it makes for an open and shut claim.
The Small Parcel Claims Process
If you’ve dealt with small parcel carriers, you know how frustrating the claims process can be. Here’s how to improve your odds:
1. Take Photos: Always document damaged packages thoroughly; photos are essential to establish liability.
2. Know the Rules: Familiarize yourself with your carrier’s packaging guidelines to avoid claim denials. These guidelines will detail their recommendations for box types, methods of packing, and industry best practices. For instance, using an underrated cardboard box could result in claims being rejected for “insufficient packaging.”
Proactive measures like proper packing and documentation can save time and ensure a smoother claims process.
Key Takeaways
Whether you are the shipper or the receiver, a picture is worth a thousand words where claims are concerned. Photographic evidence is your best ally.
If you’re the shipper, photos confirm the good condition of your goods at departure. If you’re the receiver, they prove damage upon arrival, speeding up refunds or replacements while holding the carrier accountable.
Thanks for joining us for another edition of Freight Talk with Zander. Until next time, safe travels and smooth shipping!