So, it’s almost Christmas time, and freight demand is up! One thing that we notice at this time of the year is a ton of people complaining about other shippers damaging or losing their goods. Perhaps it’s the stress of the holiday season, the increased demand is getting people in a tizz, or businesses are simply short-staffed due to annual leave or sickness, we all know the dreaded winter illnesses all too well. But this leaves shippers in a sticky situation because when things go wrong, whether it’s damaged goods, lost shipments, or delays, a freight claim becomes necessary to recover costs and protect your bottom line.

But, making a freight claim can seem overwhelming, especially for businesses unfamiliar with the process. So we’re here to help you to understand how to make a freight claim and how to handle it properly so you can make sure you receive your compensation in a timely manner.

What is a Freight Claim? 🤔

A freight claim, like any other claim, is a formal request for compensation, which, in this case, is submitted to a carrier when something goes wrong with your freight while under their supervision. The claim holds the carrier accountable for loss, damage, or delays, provided the issue falls within their liability, which is dependent on their terms of service and insurance.

Freight claims are governed by specific laws and regulations, such as the Carmack Amendment for interstate shipments, and understanding this framework is super important for making a successful claim.

So, When Should You File a Freight Claim?

You might want to file a freight claim in any of the following circumstances:

📦 Damaged Shipments: Your goods arrive visibly damaged, broken, or otherwise compromised.

👀 Lost Shipments: Items missing from your freight or cargo is not delivered all together.

⏰ Delayed Shipments: A shipment gets held up for a number of reasons and arrives significantly later than the agreed timeframe.

Providing you experience any of the above, you’re now left wondering how to proceed with a freight claim….

Here’s Your Step-by-Step Guide to Making a Freight Claim

Step 1: Inspect the Shipment Upon Delivery

This first step in your claim journey is crucial. Without this step, you won’t really have a leg to stand on to make a claim if you don’t pick up on any damages, missing goods, or delays at the point of receipt. Or at least it will be incredibly difficult to prove that any damage was sustained during transit if you miss this step. So thoroughly inspect your freight before signing the delivery receipt.

What Should You Look For? 

1. Check for visible damage to the outer packaging.
2. If shipping more than one piece, make sure you count the items to ensure nothing is missing.
3. Cross reference with the bill of lading (BOL) and packing list, this is another step to ensure you have all of your freight but also makes sure you’re receiving the correct goods.

At this stage, if you notice any of the issues we’ve stated above, then you must note them directly on the delivery receipt. Do not sign a clean receipt if there are damages or items missing, as this is likely to jeopardize your claim.

Step 2: Documenting the Issue

Thorough documentation is crucial to the success of your claim. Carriers and insurance companies usually require extensive evidence to process a claim, so the more detail you include, the stronger your case will be.

Key Documents to Collect:

📄 Bill of Lading (BOL): This is a legal contract between yourself and your carrier that outlines all details of your shipment.

🧾 Delivery Receipt: Add annotations of damages or missing freight.

📸 Photo or Video Evidence: If possible, take clear photos or videos of any damage to your freight. This will aid as supporting evidence in your claim.

🧾 Packing Slip: These are like an invoice; they can be used to prove the value and contents of your shipment.

🧾 Freight Invoice: This details shipping costs and terms.

📑 Carrier Inspection Report: If your carrier inspects the damage, make sure you get a copy of their report. So then you can query any discrepancies.

Step 3: Notify the Carrier Immediately

In the instance you need to make a claim, timing is super important. Notify your carrier as soon as possible. Most carriers have deadlines for when you can report damages or loss, which can range between 5-30 days after delivery. So double check these timeframes with your carrier.

How to Notify the Carrier:

💻 Contact the Carrier: Inform the carrier in writing, via email, or an online claims portal about the damage or loss. It’s important to put this in writing as you will then have proof of the exchange of conversation.

📃 Preliminary Notice: Some carriers require an initial notification before submitting the full claim. Be sure to check what your carriers process looks like before filing the claim.

📦 Hold the Freight: Do not discard the damaged goods or packaging until the carrier has inspected them. If you discard of any items, your claim could be void. Most carriers will send someone to further inspect the damage, so keep everything intact until you’re sure all inspections have been completed. It’s probably best to keep the goods until you have your claim paid, just in case.

Step 4: Filing the Freight Claim

Once you’ve documented everything and made your carrier aware of any issues, it’s then time to formally file your claim. Gather all supporting evidence and documentation, before completing a claim form. On this form make sure that you clearly state the type of claim, and include your calculated value of the goods you’re claiming for, and all of the supporting evidence you have gathered up to this point, listed above.

Once your claim has been submitted, it’s important to keep chasing your carrier to make sure that is it being processed. At this point, you’ll also want to document all communications. Congratulations, you’ve made your first freight claim! But there’s still more to it, stay tuned for our next blog where we will discuss what to do if your claim is denied. They’re not always straight forward unfortunately.

But, How Can PEI Help?

We wouldn’t blame you if, after reading this blog, you’re feeling overwhelmed and never want to be in a situation where you need to make a freight claim (who does!). We get it, it’s a lot! But luckily for our shippers, we handle everything claims related on your behalf. We’ve got a few expert members on our team who will do everything in their power to make sure your claims are correctly filed and that you get paid out promptly 😊

Get in touch today to see how we can help simplify your freight needs, call us on: Phone: 888-SHIP-911 or use the link below!

Need help with any of your specialized or expedited shipments?

Today can be the day you stop struggling with shipping problems.

At PEI, we’re experts in dealing with specialized freight and can handle yours with any custom requirements.