pieces

Understand who is liable for damage or loss of cargo

Take pictures

Create a standard operating procedure (SOP

Inspect freight thoroughly when it arrives

Retain damaged goods and packaging

Best Practices for freight claims

Special or Consequesntial Damage

Document and Inform

Reciept of Delivery

Mitigation

Property Damage

Industry Expectations of Claimant

Document Claim

Responsible Party

Claimant

Document claim. The claimant should use a claim form3 that contains three elements, each of which is supported by documentation that will vary from claim to claim.

Identify the responsible party. The contract of carriage determines the party that is liable for the cargo loss and damage. This is typically the Bill of Lading (BOL), however, liability may be negotiated in other agreed-upon transportation contracts.

Identification of the claimant. The claimant is the individual who carries the risk of loss in transit. Risk of loss is generally determined by the terms of sale. The claimant must present a properly documented claim to the responsible party, as defined in detail in the Code of Federal Regulations, Title 49 CFR Part 370.2

Claimant

IV

Step 4

Step 3

Step 2

Step 1

• Special or consequential loss or damage is generally uncollectible in the absence of evidence that the risk was communicated and agreed to in writing with C.H. Robinson and/or the carrier prior to shipment acceptance.
• Notifications must explicitly outline the financial repercussions of specific failures.

Shipper and customer facilities, carriers, brokers, and third parties should agree about and know what to do if damage is suspected, including escalation and notification processes.

Create a standard operating procedure (SOP).

• Property damage is strictly between the properly owner and the party who physically damaged the property.
• The property owner is responsible for gathering contact information from the culprit and filing a claim with the property owner’s insurance provider, the culprit directly, and/or the culprit’s insurance provider.

Keep all original packaging until the claims resolution process is finished. This includes cartons and contents. If the carrier is required to pay a claim, they are legally entitled to take possession of the freight and salvage it to recoup their costs.

Retain damaged goods and packaging

If there appears to be a lot of obvious damage, take pictures while the product is still in the trailer, along with the trailer number on the inside wall of the trailer

Take pictures

Make sure you understand the party that is ultimately liable for cargo damage and loss. Unless explicitly agreed to within written contracts, intermediaries such as third parties or brokers are not liable for loss or damage to cargo. Do not confuse the handling of the filing and/or collection of the claim with assumption of liability.

Understand who is liable for damage or loss of cargo

If they file a claim, claimants must prove that the freight was in poor condition when it arrived. At a minimum, there should be detailed notes about the type and extent of obvious damage, or for suspected damage. The notes must be written on the delivery receipt or BOL before taking the product into inventory (e.g., not “load damaged,” but “entire load was upside down and contents spilled out of multiple containers”).

Inspect freight thoroughly when it arrives

• Deficient delivery exceptions noted without sufficient alternate evidence are generally considered receipt of cargo in good order and condition.
• Verbal notifications are not sufficient means of documentation.

• Clearly and specifically document any damage or shortage on the delivery receipt in the presence of the carrier.
• Inform C.H. Robinson immediately once this is complete.

• Present the facts that sufficiently identify the shipment. The form should contain shipping and delivery points, dates, and carrier reference numbers. Supporting documents include the BOL and a copy of the carrier’s freight bill.

• Assert liability for the alleged loss, damage, or injury. The form should specify the type of alleged liability (loss, damage, or injury). Supporting documents include a signed BOL with delivery exceptions noted, inspection reports, temperature recordings, and law enforcement reports.

• Make a claim for payment of a specified or determinable amount of money. The claim form should contain an itemized breakdown of the specific dollar amount being claimed. Supporting documents include the commercial sales invoice, accounts payable credit reports, and inventory cost reports

• By law all claims require mitigation.
• If mitigation cannot be provided, it is the claimant’s responsibility to provide the basis for that decision in writing.
• Speculative damage such as but not limited to tripped, tampered, removed, etc. trailer seals, tip indicators, shock sensors, or other similar devices, insects/rodents on the trailer, are merely indicators of potential cargo damage. Evidence of actual loss or damage is required by federal regulation in order to assert liability.