Concealed Damage

Concealed damage is cargo damage that isn't apparent at the time of delivery – the outer packaging looks fine, the pallet count is correct, and the receiver signs the POD clean. It's only after the cartons are opened, the product is inspected, or the goods reach the end customer that the damage becomes evident. Crushed inner packaging, broken items inside intact boxes, or water damage hidden beneath shrink wrap are all common examples.

Concealed damage creates a uniquely difficult claims situation because the clean POD works against the shipper. Without a notation of damage at delivery, the carrier can argue the damage occurred after the freight left their custody – at the receiver's warehouse, during internal handling, or even before tender. The burden of proof effectively shifts to the claimant, who must demonstrate that the damage was consistent with transit conditions and couldn't have occurred post-delivery. Photographs, packaging analysis, and the nature of the damage itself all become critical evidence.

Timing matters significantly. Industry best practice – and most carrier tariff requirements – is to report concealed damage within five days of delivery, though the sooner the better. The longer the gap between delivery and discovery, the weaker the claim becomes. Receivers should be trained to open and inspect freight promptly, and any concealed damage should be documented with detailed photos, retained packaging, and a written description before anything is discarded or moved.

For shippers in food and beverage or cold chain, concealed damage often intersects with temperature excursions – product that appears physically intact but has been compromised by temperature abuse during transit. In these cases, temperature monitoring data from reefer units or in-shipment data loggers becomes the key evidence. Without it, proving the damage occurred in transit is extremely difficult.