BEST PRACTICES IN FREIGHT CLAIMS MANAGEMENT
With the volume of shipments moving through carrier networks damaged or lost shipments will be inevitable. While PNG Logistics Co. utilizes premier carriers and our custom routing reduces the likelihood of a claim, it still happens. Unlike many other companies who put the sole burden on the customer, PNG Logistics Co. acts as your processing agent when it comes to claims. Even though we process the claims on your behalf there are some things you can do on your end to make the process smoother.
- Notation, Notation, Notation… “If it’s not documented it didn’t happen” This is the mantra for most businesses these days and the same holds true for trucking companies as well. Please note at the time of delivery everything you see, basic notation is not enough, be specific. If one box has a hole in it write that down. Notations like “subject to further inspection” on “shipment dropped” are not specific enough to establish liability. When a shipment is moved there are really 3 parties that can possibly be liable for the damage 1) the shipper who sent the product via insufficient packaging or shipped out a damaged product 2) the carrier who may have damaged the product in transit or other freight might have damaged your freight which was adjacent to it. 3)The consignee might have damaged the freight while moving it in their warehouse
- If a shipment is damaged it should be set aside and we should be notified right away. Do not discard any packaging or damaged material, the carrier has the right to recover the damaged freight and sell for salvage and also may deny a claim if the damaged item is no longer available for inspection.
- Take pictures more and more carriers are no requiring pictures of the damaged goods before they will even consider a claim.
- Pay the freight bill, some people may think that if they don’t pay the freight bill it will give them leverage but it actually holds up the process. Freight claims will not be processed if the freight bill is not paid the claim and the freight bill are two separate items and a claim does not preclude a customer from paying the freight charges.
- Know you cannot profit from a freight claim. If you send out a shipment to your customer that you bought for $80 and sold for $100 you must claim your replacement value of $80 dollars because if you filed for $100 you would have profited 1 time from your customer and 1 time from the carrier. The carriers will ask for the replacement invoice.
- Include a repair invoice and replacement invoice if the item is repairable the same way if you total your car and the repair cost exceeded the replacement cost do not expect the insurance company to cut a check for 10K to repair a car that is worth 8k.
- Be patient the claims process is not overnight and often takes at least 4-6 weeks to straighten out. Note the clock doesn’t start until all claim is filed if your product is damaged on the 1st and we don’t receive documentation until the 30th do not expect the 4-6 week to count from time of delivery.
If you have questions on claims or current trends in logistics give us a call at 717-626-1107×3 or email email@example.com