If you’ve read our previous blog you’ll know all of the ins and outs to making a formal freight claim and the steps involved to hold your carrier accountable for damaged or lost goods. But what happens when you have your freight claim denied? This can be extremely frustrating, and confusing, leaving you not knowing what to do next. So, in this follow-up blog, we’re going to cover why your freight claim may have been denied from legal protection under the Carmack Amendment, which will not only help you to understand better for future shipments but also help you to effectively challenge an unfair denial.

Unfortunately, freight claims don’t always end after the first claim submission, and knowing how to effectively navigate denied claims is essential for all shippers. So our aim is that by using the information gained from our last blog and taking the tips on board from this piece you’ll be able to turn a denied claim into a resolved one. Or at least know that you’ve done everything possible in your power to recoup any losses.

Reasons Your Claim May Have Been Denied ❌

We touched on the Carmack Amendment in our last blog, and it’s important for you, the shipper, to be aware of the extreme scenarios that the Carmack Amendment covers carriers from being held responsible for damage to freight in transit. The following list details the situations in which you may not be able to recoup losses in the case of damages or loss.

1. Acts of God

In events like, natural disasters, severe weather conditions, or medical emergencies, etc. that are deemed unforeseeable or inevitable and effect the carrier or driver, can result in them remaining free from liability of any issues with your cargo.

2. Act of War & Public Enemy

This is a rare one, but if there is any damage to your freight caused by domestic terrorism or any military force that are an enemy to your government, then again your carrier is relieved of any responsibility. However, this does not cover them from hijackers or other cargo theft.

3. Default of the Shipper

This is perhaps the most common reason why you might have your freight claim denied. If the carrier can prove that the freight was  poorly packaged or had improper labelling, etc and any damage was caused from negligence of the shipper then the blame can be directed toward them and the carrier will not be held responsible.

4. Public Authority

This one covers carriers if the damage, delays or loss to freight is caused by the government or “public authority”. Scenarios such as quarantines, road closures, recalls or trade bans, etc. all fall under this category and exemplifies the carrier from liability.

5. Nature of the Goods Being Transported

If the freight consists of goods that have an “inherent vice” which means that the freight may naturally deteriorate over time. Cargo such as, live plants, medications and foods are some examples of these types of freight. As long as the carrier does not add to the deterioration through delays, or improper conditions and negligence then the carrier once again is free of responsibility.

So, What Should You Do If Your Freight Claim Is Denied? 🤔

If none of the above affected your shipment and your freight claim was still denied. Then it could be for a number of other reasons like, not enough sufficient evidence, the claim was not filed correctly or the carriers liability did not cover the damage incurred. So how do you handle these situations?

1. Ask for a Review

If you have any further supporting evidence that maybe was overlooked at the time of the claim, then you could provide this to the carrier and ask for a review and reconsideration. Although, don’t be afraid to request a review even if you do not have any further evidence to provide. If you feel your claim has been unfairly assessed, then outline your points and re-submit.

2. Escalate Matters

If you haven’t already, then include senior level management at your carrier’s company into any correspondence. If this doesn’t get you any further then you could also involve an external mediator to help resolve disputes.

3. Seek Legal Assistance

Hopefully this is a last case scenario and it doesn’t come to this. But if you feel your claim is being treated unfairly then consulting a transportation attorney might be useful in getting your claim further down the line. Most carriers will aim to resolve any issues before involving attorneys, after all they won’t want to foot the costs associated with them.

Conclusion 💭

One thing to remember is that carriers are usually required to acknowledge a claim within 30 days and aim to have them resolved by day 120. Any longer than this and it might indicate that your claim has not been processed correctly or inadequate evidence was provided. So it’s important to always chase your carrier to be sure you’re kept in the loop. But, in the case of a claim definitively being denied, or the compensation not being adequate, then do not hesitate to challenge the decision if you feel that your carrier was negligent with your goods.

The biggest piece of advice we can give is that persistence is key in these scenarios. Chase up frequently, don’t be afraid to dispute a decision and please seek help from professionals when needed.

Ultimately freight claims are about protecting your business, and minimizing losses to your bottom line. Even if a claim does not go how you expected and you don’t get the results you hoped for, the claiming experience can help you to avoid future disputes. This is also a good time to review your shipping practices to reduce the likelihood of issues arising again.

How Can PEI Help? ❤️

If you want to avoid all of this entirely, then like we said in our last blog, partnering with us as your expert freight broker means that we handle everything surrounding freight claims on your behalf. So you don’t need to stress about the back and forth disputes 😊

But in the meantime, we wish you all the best in settling your freight claims and hope you can recoup any losses!

 

Want to partner with a freight broker that goes above and beyond for 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.