Freight Claims

A freight claim is the formal process a shipper or consignee uses to hold a carrier financially responsible for cargo that was lost, damaged, or delivered late. It's the primary mechanism for recovering value when something goes wrong between pickup and delivery – and in freight, things go wrong more often than anyone likes to admit.

A standard freight claim includes the original bill of lading, the freight invoice, a proof of delivery noting the exception, an itemized statement of the loss with dollar amounts, and supporting evidence such as photographs or inspection reports. Claims must typically be filed within nine months of delivery under the Carmack Amendment for domestic shipments, though carrier tariffs and contracts can impose shorter windows. The carrier then has 30 days to acknowledge receipt and 120 days to pay, decline, or make a settlement offer.

The business impact of freight claims extends well beyond the value of the damaged goods. Filing and managing claims consumes hours of administrative time – gathering documents across emails, carrier portals, and warehouse reports. Poorly documented claims get denied. Slow claims tie up working capital. And unresolved patterns of loss or damage erode carrier relationships and signal deeper supply chain problems like inadequate packaging or poor load planning.

The most common mistake shippers make is failing to document exceptions at the point of delivery. If a driver's copy of the POD doesn't note visible damage or shortages, the carrier's liability position strengthens considerably. Best practice is to inspect every delivery thoroughly, notate exceptions directly on the POD, photograph damage immediately, and file claims promptly – not in a batch at month-end when details have gone cold.