What Are Freight Claims and What You Need to Know About Them

A freight claim is a legal demand for compensation filed when cargo is lost, damaged, destroyed, or arrives in short quantities during transportation. Whether you’re a shipper sending goods or a receiver expecting delivery, understanding the freight claims process is essential to protecting your business interests and recovering losses when shipments go wrong.

Understanding Freight Claims: The Complete Guide

In the logistics and transportation industry, freight claims represent the formal mechanism through which parties seek reimbursement for cargo loss or damage that occurs while goods are in the carrier’s custody. These claims can involve anything from minor package damage to complete shipment losses, with values ranging from a few dollars to hundreds of thousands.

The Basics You Should Know About Freight Claims

Anyone associated with shipping knows that damages or loss can occur. This is where a freight claim comes in to legally claim damages or losses of freight. Understanding the fundamentals of freight claims can help eliminate the headache of filing and improve your chances of successful recovery.

What Is a Freight Claim? (Freight Claims 101)

At its core, a freight claim is a formal request for financial compensation submitted to a carrier when shipped goods are lost, damaged, or delivered incomplete. The claim holds the carrier financially responsible for the loss or damage that occurred while the freight was under their care, custody, and control.

Freight claims apply to all modes of transportation including:

• LTL (Less Than Truckload) freight shipments
• FTL (Full Truckload) shipments
• Air cargo transport
• Ocean freight and container shipping
• Intermodal transportation
• Final mile and parcel delivery

The freight claim process is governed by federal regulations, most notably the Carmack Amendment, which establishes carrier liability and provides a legal framework for resolving disputes between shippers, receivers, and carriers.

Cargo Claims vs. Freight Claims: Understanding the Terminology

While often used interchangeably, “cargo claims” and “freight claims” have subtle distinctions in the logistics industry. Freight claims typically refer to domestic ground transportation (trucking, rail), while cargo claims more commonly apply to international shipments via ocean freight or air cargo. However, both terms describe the same fundamental process: seeking compensation for loss or damage to goods in transit.

Four Types of Freight Claims

When filing a claim, there are four types of claims to describe it as:

1. Damages (Visible Damage)

Cargo that falls under this category must have visible damages upon receiving. These damages should be noted in the proof of delivery document in the form of a picture or video. Damage can include crushed boxes, torn packaging, broken pallets, punctured containers, or any physical harm to the freight that’s apparent during delivery inspection.

Common examples include:

• Crushed or dented boxes
• Punctured or torn packaging
• Water damage from improper storage
• Forklift damage or puncture holes
• Broken or cracked items visible through packaging

2. All Short (Complete Loss)

This is when the entire shipment does not (for whatever reason) make it to the consignee/destination. The freight may be completely lost, stolen, or misrouted. An “all short” claim means zero pieces of the expected shipment arrived.

This can occur due to:

• Shipment theft or cargo theft
• Misrouted freight that cannot be located
• Lost freight during terminal transfers
• Missing freight that disappeared from the supply chain

3. Shortage (Partial Shortage)

Shortages are different than “All Short” shipments in that they are usually the result of an incorrectly filled out bill of lading. Rather than the shipment being “All Short,” you are instead delivered fewer numbers of an item than recorded on the Bill of Lading.

For example:

• Bill of Lading shows 50 boxes, but only 45 boxes delivered
• 3 pallets shipped, but only 2 pallets received
• Multiple cartons missing from a larger shipment

A shortage can also be described as “over, short, and damaged” (OS&D) in the industry, referring to freight that arrives with excess pieces, missing pieces, or damaged pieces.

4. Concealed Damage or Shortage

If damage or shortages are discovered after freight is inspected and the proof of delivery is signed clear, the claim is considered “concealed.” NOTIFICATION OF CONCEALED DAMAGE OR SHORTAGE MUST BE REPORTED IN WRITING TO THE CARRIER WITHIN 5 DAYS OF DELIVERY.

It is more difficult to receive reimbursement in this case but you should document these claims anyway. Important Note: stamping or writing on the POD such statements as “Subject to Concealed Damage Inspection” or “Subject to Count and Inspection” does NOT cover the consignee in claims such as this. This is a common misperception.

What Is Concealed Damage?

Concealed damage refers to damage that is not visible at the time of delivery but is discovered later when the packaging is opened or the product is inspected more thoroughly. The damage was hidden beneath intact outer packaging, making it impossible for the delivery receiver to identify during the initial delivery inspection.

Concealed damage examples include:

• Internal product breakage within undamaged outer packaging
• Electronic components damaged internally with no external signs
• Liquid damage inside sealed containers
• Missing components or parts from inside sealed packages

Concealed Shortage Definition

A concealed shortage occurs when the outer packaging appears intact and complete at delivery, but upon opening, the receiver discovers missing items, quantities, or components that should have been included in the shipment. The shortage wasn’t visible during the delivery receipt signing because the packaging showed no signs of tampering or damage.

Concealed Damage Time Limits

For concealed damage and shortage claims, strict time limits apply:

• 5 days from delivery: You must provide written notification to the carrier about the concealed damage or shortage within 5 business days of delivery
• 9 months from delivery: You must file the formal freight claim with all supporting documentation within 9 months of the delivery date
• 2 years from claim denial: If the carrier denies your claim, you have 2 years from the date of denial to file a lawsuit

Missing these deadlines significantly reduces or eliminates your ability to recover losses, so prompt action is critical when concealed issues are discovered.

Who Files a Freight Claim: Shipper or Receiver?

One of the most common questions in freight claims is: who is responsible for filing a freight claim – the shipper or the receiver?

The answer depends on the terms of sale and who holds the title to the goods at the time of loss or damage:

Shipper Files the Claim When:

• The shipment is shipped FOB Destination (Free On Board Destination)
• The shipper retains ownership of goods until they’re delivered to the receiver
• The sale hasn’t been completed until goods arrive in acceptable condition
• The shipper arranged and paid for the freight

Receiver Files the Claim When:

• The shipment is shipped FOB Origin (Free On Board Origin)
• Ownership transfers to the receiver when goods leave the shipper’s dock
• The receiver arranged and is paying for the freight (prepaid by receiver or collect shipments)
• The receiver discovered the damage or shortage upon delivery

General Rule:

The party who holds title to the goods when the loss or damage occurred has the legal standing to file the freight claim. This is typically determined by the FOB terms in your sales contract or purchase agreement.

Many businesses have policies where the shipper handles claims regardless of FOB terms as a customer service practice, especially when maintaining good relationships with buyers is important.

Does the Shipper or Receiver File a Claim in LTL Shipments?

For LTL freight claims, the same principles apply, but additional considerations include:

• Who arranged the LTL carrier (the shipper or receiver)
• Whether freight was prepaid or collect
• The shipping terms specified in the purchase order
• Customer service agreements between buyer and seller

The Freight Claim Process: Step-by-Step Procedures

Understanding how to file a freight claim properly is essential for successful recovery. Here’s the complete freight claims process:

Step 1: Inspect the Shipment Immediately Upon Delivery

• Visually inspect all packaging for visible damage before signing the delivery receipt
• Count all pieces to verify the quantity matches the Bill of Lading
• Check for signs of tampering, wetness, crushed boxes, or torn packaging
• Take photos of the freight while still on the carrier’s truck if possible

Step 2: Note Exceptions on the Delivery Receipt

• Document any visible damage or shortage on the delivery receipt (DR) or proof of delivery (POD)
• Be specific: write “crushed,” “wet,” “shortage of 3 boxes,” or “forklift damage” rather than vague terms like “subject to inspection”
• Have the driver acknowledge and sign the exceptions
• Take photos showing the damage and the driver’s truck

Step 3: For Concealed Damage – Act Within 5 Days

• Inspect shipments as soon as possible after delivery
• If concealed damage or shortage is discovered, immediately notify the carrier in writing
• Send notification within 5 business days of delivery
• Include photos, description of damage, and estimated loss value

Step 4: Gather Required Documentation

Collect all necessary documents for your freight claim filing:

• Original Bill of Lading (BOL)
• Signed Delivery Receipt/Proof of Delivery (DR/POD)
• Concealed damage notification (if DR signed clear)
• Complete original invoice showing the value of damaged goods
• Repair invoice if applicable
• Photos and videos of damage
• Paid freight bill (critical – claims won’t be settled until freight charges are paid)
• Replacement shipment BOL (if applicable)
• Any inspection reports or third-party assessments

Step 5: File the Formal Claim

• Submit your freight claim to the carrier within 9 months of delivery
• Include all supporting documentation
• Clearly state the amount you’re claiming
• Provide your contact information and claim reference details
• Keep copies of everything submitted

Step 6: Carrier Investigation

• The carrier will review your claim and may inspect the damaged freight
• They may request additional documentation
• The carrier has the right to examine damaged goods and packaging
• Investigation typically takes 30-90 days depending on complexity

Step 7: Claim Resolution

• The carrier will approve, deny, or offer a settlement
• Approved claims result in payment to the claimant
• Denied claims include written explanation for the denial
• Settlement offers may be negotiated if they’re lower than requested

Step 8: Appeal or Litigation (If Necessary)

• If denied unfairly, you can provide additional evidence and request reconsideration
• Freight claim litigation may be necessary for high-value disputes
• You have 2 years from claim denial to file a lawsuit under Carmack Amendment
• Consider mediation or arbitration before costly litigation

Freight Claim Management: Best Practices

Effective claims management in logistics requires systems and procedures to handle claims efficiently:

Create a Claims Management System

• Designate a freight claims specialist or team to handle all claims
• Implement claims tracking software or systems
• Maintain a database of all filed claims and their status
• Track carrier performance on claim resolution
• Use freight claims technology to automate documentation and tracking

Monitor Key Metrics

• Number of claims filed per month/quarter
• Claim approval rates by carrier
• Average time to claim resolution
• Total dollars claimed vs. recovered
• Percentage of concealed vs. visible damage claims

Carrier Accountability

• Evaluate carriers based on their claims resolution record
• Consider LTL carriers with the best claims resolution record when selecting partners
• Review carrier limits of liability before shipping high-value items
• Hold carriers accountable for patterns of damage or loss

Choosing the Carrier

Transit time and cost are generally the two things that are reviewed when making the choice of who will move your freight. However, you should also take into consideration a carrier’s limits of liability. You may be moving a high dollar item that only weighs 150 pounds. If that carriers’ limits of liability only cover $2.00 per pound, your $7,000.00 damaged item is only covered for $300.00.

Things to Consider So the Full Value of Your Freight Is Covered If a Claim Is Filed

Carrier Limits of Liability: Most carriers have standard limits of liability ranging from $0.50 to $25 per pound depending on the commodity class and shipment type. For LTL freight, many carriers limit liability to $2.00-$5.00 per pound unless higher value is declared.

Extraordinary Value Declaration: When shipping high-value, low-weight items, declare the extraordinary value on the Bill of Lading. This increases the carrier’s liability coverage and may include additional freight charges based on the declared value.

All Risk Freight Insurance: Consider purchasing cargo insurance for high-value shipments. Freight insurance provides broader coverage than carrier liability and protects against more scenarios including:

• Acts of God that carriers aren’t liable for
• Inherent vice or nature of goods
• Packaging insufficiency
• Any gaps in carrier coverage

Understanding Carrier Claims Limitations: Review carrier tariffs and service agreements to understand:

• Maximum liability per shipment
• Excluded commodities or cargo types
• Special claims procedures for specific carriers
• Differences between declared value and actual liability

Causes of Freight and Cargo Damage

Understanding what causes shipping damage helps prevent freight claims before they occur. The five primary causes of cargo damage include:

1. Improper Handling and Loading

• Rough handling during loading or unloading
• Incorrect loading patterns causing weight distribution issues
• Forklift damage from punctures or impacts
• Dropping or throwing packages
• Inadequate securing of freight inside trailers

2. Inadequate Packaging

• Using packaging materials insufficient for the shipping method
• Under-cushioning fragile items
• Weak or damaged boxes that can’t withstand handling
• Improper blocking and bracing for palletized freight
• Failure to account for stacking pressure in LTL shipments

3. Environmental Factors

• Temperature fluctuations affecting sensitive products
• Moisture and humidity causing water damage
• Exposure to rain during loading/unloading
• Extreme heat or cold during transit
• Contamination from other cargo

4. Transportation Incidents

• Traffic accidents and collisions
• Sudden stops or sharp turns causing load shifts
• Rollovers or trailer tip-overs
• Road vibrations on poorly maintained roads
• Railroad impacts during intermodal transfers

5. Theft and Security Issues

• Cargo theft from unsecured trailers or terminals
• Pilferage of high-value items
• Missing pieces due to inadequate inventory controls
• Unauthorized access to freight during transit

Proper Packaging Is a Must!

The best way to avoid damaged freight is to ensure its properly packaged for the specific mode of transportation. Most people realize that packaging is the smallest cost to the overall logistics budget, but you would be surprised how many companies skimp on using low-quality supplies or methods for packaging to protect their valuable freight. Skimping on the packaging can have a significant impact on the potential of damaging your freight.

As such, the first best practice to follow is to create packing procedures for your commodities that will protect it for specific modes of transport. If you sell one item that can be shipped via air, ground, or LTL/FTL, make sure to create a system of controls or packaging procedures that will protect your items.

Packaging Requirements Per NMFC

The NMFC (National Motor Freight Classification) establishes basic guidelines for packaging requirements in the trucking industry. NMFC claims guidelines specify that packaging must:

• Be sufficient to withstand normal transportation handling and stacking
• Protect items from reasonably foreseeable hazards
• Meet industry standards for the commodity being shipped
• Comply with hazmat regulations for dangerous goods
• Include proper labeling and markings

Shippers are responsible for proper packaging under Carmack Amendment. If the carrier can prove damage resulted from inadequate packaging, they can deny liability as an “act or default of the shipper.”

If you have additional questions about NMFC packaging requirements, you can consult your ATS Rep.

How to Prevent Freight Claims and Reduce Shipping Damage

Prevention is the best strategy for damage-free shipments. Here are proven methods to reduce freight claims:

Packaging Prevention Strategies

• Use new, high-quality corrugated boxes rated for shipping weight
• Provide adequate internal cushioning (bubble wrap, foam, air pillows)
• Use pallets in good condition without broken boards or protruding nails
• Stretch wrap palletized freight with multiple layers
• Mark boxes clearly with “Fragile,” “This End Up,” or handling instructions
• Test your packaging by performing drop tests before shipping

Loading and Handling Prevention

• Train warehouse staff on proper loading and handling techniques
• Use appropriate equipment for loading (forklifts sized for the load)
• Secure freight with straps, load bars, or air bags inside trailers
• Distribute weight evenly throughout the trailer
• Don’t overload boxes or pallets beyond their rated capacity
• Inspect outbound shipments before they leave your facility

Carrier Selection and Communication

• Choose carriers with good safety and claims records
• Communicate special handling requirements on the BOL
• Designate freight as “Protect from Freezing” or temperature-sensitive when needed
• Use carriers experienced with your specific commodity type
• Establish partnerships with carriers who value your business

Tracking and Visibility

• Use shipment tracking to monitor freight location and status
• Set up alerts for delivery appointments and exceptions
• Implement freight visibility technology to identify issues early
• Monitor transit times to prevent delays that could cause damage

Educate Your Receiver

The signed delivery receipt is the most important step in filing a freight claim.

The Delivery Receipt (DR) is a very important document, it serves as proof that the carrier’s contract to move a shipment has been completed. By signing the delivery receipt as clear, complete, and without any exceptions indicating carrier mishandling; the consignee has attested that the shipment was delivered without damages/shortages.

Receiving and Inspecting Freight Shipments

Proper receiving procedures are critical to protecting your claim rights:

Before Signing the Delivery Receipt:

1. Count all pieces and verify against the BOL quantity
2. Visually inspect all packages for damage signs
3. Look for crushed boxes, punctures, tears, or water damage
4. Check for signs of tampering or opened packages
5. Inspect shrink wrap and banding for breaks or loose securing
6. Note any irregularities immediately

What to Document on the DR: Make a note of any damage or shortages on the Bill of Lading (BOL) and DR. Just because an exception is noted on the BOL does not mean you have to file a claim. However, if there are no exceptions noted, your claims representative will be in a very difficult situation to successfully collect on any claim.

A misconception is the notation of “Subject to inspect” or “Subject to Count and Inspection Stamp.” This is not a sufficient notation of damage or loss and will not be considered as such by the carrier. A notation of crushed, damage, or forklift hole should be used.

Proper Notation Examples:

• “3 boxes crushed” (not “subject to inspection”)
• “Shortage: received 47 of 50 boxes” (specific count)
• “Water damage on 2 pallets” (specific issue)
• “Forklift puncture hole in 1 box” (specific damage)

In the LTL world there are provisions for hidden damage, but this is still difficult to win. A good receiving clerk notes all irregularities on any shipment at the time of delivery.

Concealed Damage or Loss

If the freight was received and the driver has left, it is imperative that the shipment gets inspected as soon as possible. If there is any damage or shortage it must be reported to the carrier in writing within 5 days of delivery.

If concealed damages/shortages are found, the question becomes establishing responsibility for the damage/loss. Logically, damage/loss could have been caused by any entity in the chain of custody: the shipper, the carrier, or the consignee. The challenge in concealed damage/loss claims is providing evidence. The burden of proof is on the claimant to prove that the carrier is at fault.

Establishing Carrier Responsibility for Concealed Damage

To successfully win a concealed damage claim, you must demonstrate:

1. Freight was in good condition when shipped – Provide photos or documentation showing the items were undamaged at origin
2. Damage occurred during transit – Show the outer packaging was intact at delivery, ruling out post-delivery damage
3. Proper packaging was used – Prove packaging met NMFC standards and should have protected the goods
4. Timely notification – Demonstrate you notified the carrier within 5 days as required
5. Carrier had custody – Show the carrier was responsible for the freight when damage occurred

Freight damage inspection services can provide independent third-party assessments that strengthen concealed damage claims by documenting the damage professionally and objectively.

Refusing Freight for Damage

It should be determined before refusing the freight if the shipper will accept the return of the damaged item(s).

When to Refuse Damaged Freight

Consider refusing freight when:

• Damage is so severe that goods are completely unusable
• Products are perishable and damaged beyond salvage
• Time-sensitive items that can’t be replaced in time
• Damaged goods pose safety hazards
• Shipper has pre-authorized refusal for damaged goods

Understanding Your Duty to Mitigate

As a claimant, it is your obligation to mitigate any losses involved. Per NMFC Item # 300150, it is the legal duty that a party associated with this shipment, when there is substantial value in the salvage, must accept and handle it in such a manner as to mitigate the carrier’s loss as much as possible.

Since no party is in possession of the goods to properly assess and determine if there is any salvage value, no attempt has been made to mitigate the loss. In the event a claim is filed for this shipment, it is subject to declination for failure to mitigate.

What Happens to Damaged Freight?

When freight is damaged but accepted:

• The receiver keeps possession pending claim settlement
• Carrier may inspect the damage during claim investigation
• Damaged goods may have salvage value that reduces claim amount
• Carrier may take possession of damaged freight if paying full claim value
• Items with salvage value can be sold to recover partial losses

The freight can be returned to the shipping origin or a return warehouse free astray for claim inspection and mitigation purposes.

What Is Free Astray Freight?

Free astray (or free astray shipping) refers to freight that has been misrouted, lost, or needs to be returned to its origin or another location without additional freight charges. In claims situations, carriers may authorize free astray returns to recover damaged or rejected freight for inspection and salvage assessment. The return shipping is provided “free” (without charges) to facilitate the claims resolution process.

Pictures Are Worth a Thousand Words

Take pictures of how the shipment was shipped and received! Pictures of the freight on the carrier’s truck are golden. Any pictures of packaging and pictures of the damaged item will help your claim.

Best Practices for Claims Photography

Document everything visually:

• Photos of intact shipment before it leaves your dock
• Images showing how items were packaged and protected
• Pictures of the freight on the carrier’s truck during loading
• Delivery photos showing damage before unloading begins
• Close-ups of specific damage points
• Photos showing damaged packaging and contents together
• Images of manufacturer labels, serial numbers, or identification marks

Pictures of how the shipment left the manufacture have been critical in recovering a missing item or proving that the packaging was sufficient for shipping.

Video Documentation

Video can be even more powerful than photos:

• Record the unboxing process for high-value shipments
• Video inspection while freight is still on carrier’s truck
• Document the full extent of damage from multiple angles
• Create timestamped evidence of condition upon delivery

Keep the Items and Pay Your Freight Bill

Two major mistakes shippers make are discarding the damaged freight after the carrier leaves and/or refusing to pay the freight charges when the shipment is delivered with damages or shortages. Some shippers will refuse to pay the freight bill on principal, but all freight claims must be accompanied by a paid freight bill. Not paying your bill will impede your ability to resolve your claim quickly.

Why You Must Pay the Freight Bill

Carriers have the legal right to require payment of freight charges before settling claims. This prevents claimants from using unpaid freight bills as leverage in claims negotiations. Even if you disagree with the charges or believe the carrier is at fault, pay the freight bill promptly and file your claim separately.

Important: The freight charges paid and the claim amount are separate transactions. Paying freight charges doesn’t waive your right to file a claim for loss or damage.

Why You Must Keep Damaged Items

Discarding damaged items also hurts your chances of successfully resolving a claim. Carriers have the right to inspect freight when damage claims are made, and they also can take possession of the freight and salvage it if the claim awards full value for the freight.

Make sure to keep the damaged product and its associated packaging material and handle it as little as possible. This gives the carrier the opportunity to inspect the damaged freight. If this is not possible, you should carefully record and take digital images of the damaged units as well as write-up a short explanation as to why the damaged freight needed to be inspected before the carrier had a chance to do likewise.

Understanding Freight Claims Law and Regulations

The Carmack Amendment

Adopted in 1935, the Carmack Amendment is a piece of legislation that details the liability of carriers under receipts and bills of lading. The Carmack Amendment protects carriers against unreasonable freight claims and limits their liability to the actual loss or injury to the property being shipped. It also sets the timeframe that shippers must file claims to no less than nine months from the date of delivery. The timeframe for filing lawsuits is no less than two years from the date in which the claim is denied.

The Carmack Amendment establishes:

• Carrier liability for loss or damage during interstate transportation
• Claimant’s burden to prove carrier received goods in good condition
• Carrier’s burden to prove they exercised reasonable care
• Uniform standards for carrier liability across all states
• Pre-emptive federal law that supersedes state shipping laws

Carmack Amendment Exceptions and Defenses

Under the amendment, carriers may deny liability for cargo damage for five reasons:

1. Acts of God: A physical phenomenon or natural disaster that the carrier cannot control. In terms of weather, it must be severe and unexpected (e.g. a tornado). Normal weather conditions like rain or snow don’t qualify. The carrier must prove the act was unforeseeable and unavoidable.
2. The Public Enemy: Hostile acts committed by military forces that are enemies of the government (understandably, this is exceptionally rare in the U.S.). This doesn’t include ordinary theft or vandalism.
3. Act or Default of a Shipper: The carrier can prove that damage or loss was the result of negligence of the shipper (e.g. improperly packed or loaded cargo). This is one of the most common defenses carriers use. Examples include:
   • Insufficient packaging for the transportation mode
   • Improper loading causing weight imbalance
   • Failure to disclose hazardous materials
   • Inadequate blocking and bracing
4. Public Authority: Damage or loss caused by the government (e.g. quarantines, embargos, seizures, or lawful government inspections). The carrier must prove the government action was lawful and unavoidable.
5. Inherent Vice or Nature of the Goods Transported: Damage caused by natural traits of the products shipped (e.g. the natural decay of perishable goods). This includes:
   • Natural deterioration of perishable items
   • Spontaneous combustion of certain materials
   • Evaporation or weight loss in liquids
   • Natural ripening or aging processes

Carmack Amendment and Concealed Damage

The Carmack Amendment concealed damage provisions establish that concealed damage claims are valid if the claimant can prove the damage occurred during transit. The carrier cannot automatically deny concealed damage claims simply because the delivery receipt was signed clear. However, the burden of proof is higher for concealed claims, requiring evidence that:

• The packaging appeared intact at delivery
• The carrier had exclusive custody during the damage-causing event
• Proper packaging was used that should have revealed damage if it existed at delivery

Additional Freight Claims Regulations

Beyond the Carmack Amendment, freight claims are governed by:

Federal Motor Carrier Safety Regulations (FMCSR): Establish safety standards and requirements for motor carriers that impact loss prevention.

Shipping Terms and Incoterms: Define when ownership transfers and who bears risk during transportation (FOB Origin, FOB Destination, CIF, etc.).

Carrier Tariffs: Published rates and rules that may include specific claims procedures and liability limitations.

Bills of Lading Terms: Contract terms on the BOL that establish specific carrier obligations and liability limits.

49 U.S.C. § 14706: The federal statute codifying Carmack Amendment provisions for carrier liability.

Freight Claim Time Limits Summary

Critical deadlines you must follow:

Event	Time Limit	Consequence of Missing
Concealed damage notification	5 days from delivery	May invalidate concealed claims
Formal claim filing	9 months from delivery	Claim is permanently barred
Lawsuit filing (after denial)	2 years from denial	Lawsuit is time-barred
Lost freight recovery attempts	2 weeks (reasonable time)	Must file claim for lost freight

Special Claim Situations

LTL Freight Claims

LTL freight claims present unique challenges because:

• Shipments are handled multiple times at various terminals
• Multiple carriers may touch the freight in interline shipments
• Damage can occur at transfer points between trailers
• Shipments are often palletized and shrink-wrapped for protection

LTL claims best practices:

• Always palletize shipments to reduce handling damage
• Use shrink wrap to keep boxes together and show tampering evidence
• Mark cartons with “Team Lift” for heavy boxes
• Photograph the complete pallet before shipping
• Track shipments to identify delay points that might indicate mishandling

LTL carriers with the best claims resolution record typically have:

• Advanced claims tracking systems
• Dedicated claims departments
• Faster response times
• Higher approval rates
• Transparent claims processes

Research carriers’ claims performance before selecting your LTL provider. Ask for their average claims resolution time and approval rates.

Freight Forwarder Claims

Freight forwarder claims involve additional complexity because freight forwarders act as intermediaries, not actual carriers. When filing claims involving freight forwarders:

Determine who is liable:

• If the freight forwarder provided the actual transportation, they may be liable as a carrier
• If they arranged transportation with another carrier, the actual carrier is typically liable
• Freight forwarders acting as agents may not have direct liability

Use the freight forwarder claim form specific to that forwarder’s requirements, which may differ from standard carrier claim forms.

Understand the forwarder’s role:

• Freight forwarders may assist with claims but aren’t always the party responsible
• International shipments may involve multiple parties (ocean carrier, drayage carrier, freight forwarder)
• Contract terms with the forwarder determine their level of liability

Are Freight Brokers Responsible for Cargo Claims?

Generally, freight brokers are not liable for cargo claims because they act as intermediaries arranging transportation, not as carriers. However:

• Brokers must use licensed, insured carriers
• Brokers may be liable if they were negligent in carrier selection
• Some broker agreements include limited liability provisions
• The actual motor carrier who transported the goods is typically responsible

Always review your broker agreement to understand their role and liability in claims situations.

The Basic Documents That Will Be Requested When Filing a Freight Claim:

• Bill of Lading – Original BOL showing shipment details, declared value, and terms
• Signed Delivery Receipt – POD showing how shipment was received (clear or with exceptions)
• Concealed damage notification (if delivery receipt is signed clear) – Written notice to carrier within 5 days
• Complete original invoice – Shows the actual value of damaged or lost goods
• Repair invoice if applicable – If goods were repaired, proof of repair costs
• Pictures – Photos of damage, packaging, and shipment condition
• Paid Freight bill – Proof that freight charges have been paid in full (claim settlement will not be released until the freight bill is paid)
• Replacement shipment BOL – If you shipped replacement goods, the new BOL
• Supporting documentation – Any inspection reports, email correspondence, or additional evidence

Freight Claim Form Requirements

Most carriers have a freight claim form (or cargo claim form) you must complete. This standardized form typically requests:

• Claimant information (name, address, contact)
• Shipment details (PRO number, BOL number, dates)
• Description of loss or damage
• Amount claimed with value justification
• Declaration that information provided is true and accurate

Download the carrier’s specific claim form from their website or request it from their claims department. Complete all sections accurately and attach all supporting documents.

Timelines to Consider

• 5-day notification of concealed damage (will require what item is damaged and value)
• 9 months from day of delivery to file a formal claim with the carrier
• 2 years from claim denial to file a lawsuit under Carmack Amendment
• Lost Freight reasonable timeline: Carriers vary on the “reasonable” timeline to recover misdirected freight. Time must be given to perform dock checks and allow for APBs (All Points Bulletins) to be sent out to other terminals. Two weeks is the average to allow the carrier to recover the freight before having a replacement shipped or filing a freight claim.

Freight Claim Resolution Timeline

Typical freight claim resolution follows this timeline:

• Days 1-7: Initial claim review and acknowledgment by carrier
• Days 7-30: Carrier investigation, possible inspection of damaged freight
• Days 30-60: Carrier decision (approval, denial, or settlement offer)
• Days 60-90: Negotiation and final resolution for complex claims
• 90+ days: Appeals, additional documentation, or escalation for denied claims

Claims management requires patience but also persistence. Follow up regularly on pending claims and document all communications with the carrier’s claims department.

Freight Claims Technology and Solutions

Modern freight claims technology streamlines the claims process:

Claims Management Software: Automates documentation, tracking, and communication

• Digital submission of claims with document uploads
• Automated tracking of claim status and deadlines
• Analytics on claim frequency and carrier performance
• Integration with TMS (Transportation Management Systems)

Digital Documentation Tools:

• Mobile apps for photo and video capture at delivery
• Electronic proof of delivery with digital signatures
• Cloud storage of all claims documentation
• OCR technology to extract data from documents

Freight Claims Solutions: Companies specializing in claims management can:

• Handle claims filing and follow-up on your behalf
• Negotiate with carriers to maximize recovery
• Manage the entire claims lifecycle
• Provide reporting and analytics on loss patterns

Investing in freight claims technology reduces administrative burden, improves recovery rates, and provides valuable data for loss prevention strategies.

Working with Specific Carriers

Carrier-Specific Claims Procedures

Different carriers have unique freight claims procedures:

ABF Freight Claims: ABF Freight has a dedicated claims department with online claim submission available through their website. ABF freight claims typically require standard documentation and follow industry-standard procedures.

Carrier Claims Departments: Each major carrier has a claims department with specific:

• Contact information for claim submission
• Online portals for claim tracking
• Required forms and documentation
• Processing timelines and procedures
• Appeals processes for denied claims

Research your carrier’s specific requirements before filing. Visit their website or call their claims department to understand their process.

Reducing Your Overall Claims Rate

To prevent freight claims and achieve damage-free shipments, implement a comprehensive strategy:

Loss Prevention Programs

Internal Controls:

• Standard operating procedures for packaging and loading
• Quality checks before shipments leave your facility
• Employee training on proper handling techniques
• Regular audits of packaging materials and methods

Carrier Partnerships:

• Work with carriers to identify damage trends
• Share best practices for handling your specific products
• Schedule regular carrier performance reviews
• Provide feedback on damage patterns to improve carrier operations

Data Analysis:

• Track all claims to identify patterns (products, lanes, carriers)
• Analyze root causes of damage and loss
• Calculate your claims rate as a percentage of shipments
• Set reduction targets and measure progress

Continuous Improvement

The goal is to reduce shipping claims through ongoing improvement:

• Review every claim for lessons learned
• Update packaging standards based on damage patterns
• Eliminate high-risk carriers with poor claims records
• Invest in better packaging materials when justified by savings
• Train warehouse and shipping personnel regularly

A proactive approach to freight claims prevention saves money, reduces disruption, and improves customer satisfaction.

Freight Claim Litigation

When carriers deny valid claims or settlement offers are unreasonably low, freight claim litigation may be necessary. Consider legal action when:

• High-value claims are denied without valid justification
• Carrier refuses to respond to claims or stonewalls investigation
• Settlement offers don’t reflect actual losses
• Pattern of unfair claim denials by a specific carrier
• Carmack Amendment violations by the carrier

Before pursuing litigation:

1. Exhaust all appeals and negotiation opportunities
2. Document all communication attempts with the carrier
3. Consult with a transportation attorney experienced in Carmack Amendment cases
4. Evaluate litigation costs vs. potential recovery
5. Understand the 2-year statute of limitations from claim denial

Freight claim litigation can be expensive and time-consuming, so it should be a last resort for significant claims where carrier liability is clear.

Conclusion: Protecting Your Shipments and Your Business

Freight claims are an unfortunate reality in the logistics industry, but understanding the process, your rights, and your obligations puts you in the best position to recover losses when they occur. By following the best practices outlined in this guide, you can:

• Prevent many claims through proper packaging and carrier selection
• Document damage properly to support valid claims
• File claims correctly with all required documentation
• Maximize recovery on legitimate loss and damage situations
• Reduce your overall claims rate through continuous improvement

Whether you’re dealing with LTL freight claims, FTL cargo claims, concealed damage situations, or any other loss scenario, the key principles remain the same: document everything, act promptly, understand your rights under the Carmack Amendment, and work cooperatively with carriers while protecting your business interests.

We at ATS Logistics hope that all your shipments arrive at their destination without issues. But if something goes awry, we are here to help.

For more information about our freight services and how we can help protect your shipments, contact ATS Logistics today.

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