The definition of a freight claim is pretty simple — a freight claim is a legal demand by a shipper to a carrier for restitution of money from a lost or damaged shipment — but the actual processing of a freight claim can sometimes be far from pretty simple. The often complicated legal procedures of freight claims can become a ball and chain for logistics professionals, repeatedly leaving them vulnerable to strict deadlines and hefty fees. But the good news is there are freight claims management teams that can help shippers navigate the claims with the certainty of expert advice, thus eliminating the intimidation factor. To help get you familiar with the process, here are some must-know keywords for shippers considering freight claims management.

Analytics & Reporting

There are physical alterations you can make to help reduce freight claims — such as using more secure packaging and properly stacking a shipment — but there is also another way. More and more, data analytics is becoming an invaluable tool to help cut down on freight claims. By collecting, organizing, and closely examining data related to shipments and claims, companies can spot tendencies, make wiser decisions, and implement changes that get the freight to their final stop on time and in a safe condition. Analytics help shippers identify trends, such as certain carriers being more claims-prone or specific routes more susceptible to damaged or lost shipments when reaching the final destination. Analytics can also help shippers grasp a real-world understanding of the freight claims process.

Technological tools, such as an impact recorder inside the shipment, can collect data that identifies places on the route where a load might have had rough handling that caused damage. This data provides powerful support when making a concealed damage claim. GPS and radio-frequency identification tracking data can show when the shipment was misrouted or handled in a suspect manner. In addition to helping your claims case, this evidence can hopefully increase vendor compliance in the future.

Carmack Amendment Expertise

The Carmack Amendment, which applies to interstate shipments, restricts the liability reimbursement costs to only loss or damage of the property itself. It was a 1906 revision to the Interstate Commerce Act of 1877 that superseded state laws which allowed for damage liabilities to be higher than the cost of loss or damage. 

You must stay up-to-date and vigilant to keep up with the Carmack Amendment deadlines. With expert-driven freight claims management software and consulting, you will know when the deadlines are approaching and have an excellent, easily-accessible way to compile documentation–the key to processing claims quickly and efficiently without a worry about the statute of limitations.

Carrier Correspondence 

Having all your documentation ready and knowing the deadlines are critical steps in the freight claims process. But equally important is the need to set up practical and prompt communication channels with the carrier. Poor correspondence can bring all the hard work already done to a crashing halt due to misunderstandings or missed deadlines. But with cloud-based carrier correspondence, all parties can share pertinent information and documentation easily and instantly. The freight claims management software also means everyone can have accessibility anytime and anywhere to confirm documents are ready and deadlines get met.

Deadlines and Due Dates

With the Carmack Amendment come deadlines. According to the amendment, the minimum amount of time a carrier can require for filing a claim is nine months from the date of delivery or, in the case of loss, nine months from a reasonable delivery date. It is a mistaken belief that the Carmack Amendment requires cargo claims to be filed within nine months. While most claims are usually filed in that time, the nine-month deadline is only the minimum. The carrier can only be liable for loss or damage if the claim is filed before the deadline elapses. Again, a cloud-based deadline management system can be a savior because the software can alert you to approaching deadlines and ensure you have all the proper documents readily available.

Document Management

Documents are what make or break a freight claim. They must be legible with all the pertinent information and be well organized and easily accessible to make the claims process go smoothly. Here are the important documents you need to know about:

• Bill of lading: The bill of lading (BOL) is a detailed list of goods the carrier gives to the person consigning the goods. The BOL, which is attached to the product, contains the signatures of the seller, shipper, and buyer.
• Invoice: An invoice is a document issued to a buyer before their items are shipped. It is a comprehensive summary that includes the buyer’s and seller’s information, a description of the contents, cost breakdown, harmonized system (HS) codes, and terms of sale.
• Certificate of origin: A certificate of origin helps verify a product’s country of origin. It will help customs authorities know where a specific product was produced, manufactured, and processed.
• Export and import license: Countries can often have different goods restricted from being shipped into or out of the country. Shippers must apply for a special export license to obtain permission to move such goods across international borders.
• Export packing list: This detailed document provides information to the relevant parties that handle the shipment along the supply chain journey. It allows goods to be stored properly.
• Insurance certificate: This document confirms you have proof of insurance coverage if a shipment is lost or damaged.

There can be a lot of documents to keep track of during the freight claims process, and the manual processing of these papers can leave a shipper vulnerable to oversight and mismanagement. Tracking down and organizing all these items is burdensome and only adds to the fretting about missed deadlines and lost revenue. Cloud-based document management puts all these documents in one place, making them easily accessible when needed.  

FreightClaims.com Can Help You Untangle the Jumble of Freight Claims   

Freight claims can be a complex process that taxes even the most astute of those in freight claims management. However, you can alleviate that stress and strain by working with a partner who brings expertise and technology that provides:

• Analytics and reporting that shows where you can make changes to reduce damage and loss before they happen.
• Keen knowledge of the Carmack Amendment and a platform that gathers and organizes documentation, so the evidence is easily accessible.
• Cloud-based software that makes it easy to communicate and share documentation with others anytime and anywhere.
• A system that alerts you to deadlines and makes sure everything is prepared and ready before those deadlines pass.
• Software that can compile and store all documentation in one place so that nothing is lost.

FreightClaims.com can be the ideal partner to help you through the web of freight claims management. With FreightClaims.com’s user-friendly dashboard, you can easily stay in the loop with intuitive tracking and claims history data. If you are ready to begin saving money by successfully resolving your freight claims, visit us today for a demo.