Freight claims can undoubtedly be one of the more intimidating aspects of the supply chain industry. When the subject of freight claims is brought up, the stereotypical images are often of loads of paperwork piled on a desk or managers sitting behind said desk and trying to comprehend jargon-filled legal documents. Add in the deadlines included in the Carmack Amendment, and you have a lot of pressure on shippers.
You may have gotten away with overlooking freight claims in the past, but no longer. There is too much money involved nowadays. With a study stating 21% of Americans who have bought a large item saying it arrived damaged and one estimate saying that 25% of containers and trailers are damaged, it’s a must to track down the money lost from those damages. It makes an effective freight claims strategy all that more important as shippers contend with an increasingly uncertain logistics landscape. One of the ways shippers can find help as they go to battle for freight claims is a freight courier claims portal, which can create, submit and manage the status of freight claims. Let’s now take a look at three instances when the assistance of a freight courier claims portal can really make a difference.
The time-consuming, tangled web that is the freight claims process often led shippers of days past to file only when the claims were substantial — and the claims they did make were mainly for loss (a product loaded at one point of origin doesn’t arrive at its destination) or damage (a received shipment shows visible damage that was not evident at the point of origin). That, however, is changing as shippers are increasingly filing for more complex claims — demurrage claims, abandoned cargo claims, and claims against additional and unexpected fees charged by shipping lines, to name a few — in a new world full of unpredictable supply chains.
With the economic turmoil during the pandemic, many businesses realized there was more volatility concerning profit margins, and shippers started to see that every penny counts. Freight claims, no matter the type, became a focus area. In particular, freight claims are rising on increasingly costly demurrage and detention fees. One report noted a global average increase of 39% in demurrage and detention fees for standard containers in 2021. With such rising costs, shippers have become financially obligated to go after claims on items like this and turn to a freight courier claims portal partner to do the untangling. A freight claims portal helps by accessing paperwork through cloud-based, digital platforms rather than cumbersome manual processes. It also has integrated calendars that can help keep track of deadlines.
There’s an old adage: You’re only as good as the people under you. That doesn’t factor in that supply chain managers are having a hard time finding the people to be under them right now. Labor shortages have struck many areas of the economy, but the supply chain has been hit particularly hard in two places: warehouse workers and drivers. In a survey from Instawork, 75% of light industrial businesses said they couldn’t find enough warehouse labor to be fully prepared at the start of this year, and 60% struggled to keep pace with increased demand last year. Things have eased slightly on the driver’s side, but there is still great cause for concern. Recent projections say the number of unfilled driver jobs was down about 4% from 2021, but that still means nearly 78,000 positions are waiting to be filled. These shortages have caused current workers to be more harried while trying to keep up with the increasing flow of shipments. That leads to delayed or neglected shipments and potential mishandling, which means more freight claims and a possible damaged reputation for the shipper. A freight claims management system with innovative analytics and visibility can enable shippers to see the trends troubling their supply chains and, with a better perspective, opens the possibility of making changes to solve persistent performance issues.
For any manager, there is always the threat of unforeseen outside events throwing monkey wrenches into the mix. That is certainly just as much the case today as it has ever been in the past. Here are three challenges that face the supply chain industry these days:
The most recent concern has been a possible freight rail strike, which would cost the economy more than $2 billion daily. Although the Biden administration has brokered a tentative agreement, many rail workers were disappointed with the conditions. Some rail worker unions have voted to ratify the tentative deal, but others have rejected it or have yet to release the voting results. A massive strike could lead to late shipments or shortages.
This is also not a new wrinkle to the shipping industry’s woes. Currently, the war in Ukraine is causing repercussions for the supply chain. The conflict is having an outsized impact on the global supply chain, impeding the flow of goods, fueling dramatic cost increases and product shortages, and creating catastrophic food shortages worldwide, according to experts at a symposium hosted by the MIT Center for Transportation and Logistics. It has caused many shippers to try to find alternate routes for getting their products shipped — and forced them to deal with higher costs on items such as fuel.
The ongoing shortage of both workers and vital equipment has made it uncertain when reliable and predictable access to capacity will return. The days of overburdened workers making mistakes in warehouses or yards and the lack of reliable capacity that leaves shipments unloaded at docks are still ongoing.
It can often feel like a globe full of problems, but the good news is that shippers can acquire an ally with a reliable freight claims management portal.
Sometimes it seems like turmoil is the middle name of the shipping world at the moment. We have listed some of the troubles shippers face, and some ways partners can help them navigate these choppy seas. With all the benefits of having a freight claims management partner with a freight courier claims portal, you can breathe and sleep a little easier. FreightClaims.com is ready to be that partner. Utilizing one system that can manage and store all freight claims, documents, and carrier communications, FreightClaims.com can keep the whole freight claims process simple and streamlined. So if you are eager to find a helping hand, request a demo at FreightClaims.com today.
