When goods are shipped, various issues can arise that may necessitate the filing of a freight claim. The most common types of claims include:

1. Damage Claims: This is the most frequent type of freight claim, where goods are physically damaged during transit. This could range from minor scratches to complete destruction of the product. Damage claims require proof that the damage occurred while the goods were in the carrier’s custody.
2. Loss Claims: A loss claim is filed when the goods are lost entirely and never reach their intended destination. This could happen due to theft, misrouting, or other reasons that result in the goods being unaccounted for.
3. Shortage Claims: Sometimes, shipments arrive with fewer items than were listed on the bill of lading. This is classified as a shortage claim. Concealed shortages, where the packaging appears intact but the content is missing or incomplete, are particularly challenging as they may not be immediately evident.
4. Concealed Damage Claims: These claims occur when the goods appear to be in good condition upon delivery, but damage is discovered after the shipment is unpacked. Concealed damage claims are more complex because the damage may not be immediately evident, making it harder to establish that it occurred during transit.
5. Contamination Claims: In cases where goods are exposed to harmful substances during transit, resulting in contamination, a claim can be filed. This type of claim is often relevant for shipments of food, chemicals, or other sensitive materials that require specific handling.

When it comes to freight claims, the burden of proof typically lies with the shipper. The Carmack Amendment, a key piece of legislation in the United States, establishes the liability of carriers for loss or damage to goods during interstate transport. However, it also requires shippers to prove that the carrier was responsible for the loss or damage.

To successfully establish liability, the shipper must demonstrate:

• Good Condition at Origin: The shipper must prove that the goods were in good condition when handed over to the carrier. This is typically done through inspection reports, photographs, and documentation at the point of origin.
• Arrival in Damaged Condition: The shipper must also provide evidence that the goods arrived at the destination in a damaged state. This can include photographs taken upon delivery, inspection reports, and the consignee’s acknowledgment of the damage.
• Monetary Loss: The shipper needs to establish the financial loss suffered due to the damage or loss of goods. This could include invoices, repair estimates, or replacement costs.

Documentation plays a crucial role in establishing these points, so shippers should ensure they have thorough records at every stage of the shipping process.

While carriers are generally liable for damage or loss, there are limits to this liability, and certain exceptions can relieve the carrier from responsibility. Understanding these limits and exceptions is essential for shippers:

• Declared Value and Liability Limits: Carriers often limit their liability based on the declared value of the goods. If the shipper declares a lower value to save on shipping costs, the carrier’s liability in the event of a claim will be limited to that amount. Additionally, carriers may have liability caps based on the weight of the shipment or the type of goods being transported.
• Exceptions to Carrier Liability: Carriers may be relieved from liability under specific circumstances, such as:
  • Act of God: Natural disasters, such as floods, hurricanes, or earthquakes, that are beyond the carrier’s control.
  • Public Enemy: Situations involving war, terrorism, or other hostile actions that prevent the safe delivery of goods.
  • Act of Public Authority: Government actions, such as customs seizures or quarantine regulations, that interfere with the shipment.
  • Inherent Vice: Damage caused by the natural characteristics of the goods, such as perishability or fragility, that cannot be attributed to mishandling by the carrier.

When filing a freight claim, shippers should follow best practices to maximize their chances of a successful outcome. The process typically involves the following steps:

1. Immediate Inspection: Upon receipt of the shipment, conduct a thorough inspection for any visible damage, shortages, or other issues. Take photographs to document the condition of the goods as they arrive.
2. Notifying the Carrier: If damage or loss is discovered, the shipper should immediately notify the carrier, usually within a specified time frame (often 5 to 15 days). Failure to report damage promptly can result in the claim being denied.
3. Gathering Documentation: Collect all necessary documentation to support the claim, including:

• • Bill of Lading: The contract between the shipper and the carrier, outlining the terms of the shipment.
  • Inspection Reports: Any reports from third-party inspectors or internal inspections at the origin and destination.
  • Photographs: Visual evidence of the damage or loss.
  • Invoices and Proof of Value: Documents proving the value of the goods and the financial loss incurred.
  • Correspondence with the Carrier: Records of all communications with the carrier regarding the issue.

1. Submitting the Claim: Once all documentation is gathered, submit the claim to the carrier’s claims department. The claim should include a detailed description of the damage or loss, the amount being claimed, and all supporting documentation.
2. Following Up: After submitting the claim, maintain regular communication with the carrier to track the progress of the claim. Be prepared to provide additional information if requested.
3. Dispute Resolution: If the carrier denies the claim or offers a settlement lower than expected, shippers may need to negotiate or seek legal assistance to resolve the dispute.