Avada Car Dealer News

What is freight damage?

One common issue that can arise during freight transportation is loss or damage. And it does not discriminate, whether you are shipping tonnes of industrial equipment or a pair of shoes ordered online, you might get unlucky. There is always a chance that shipments will be lost or damaged as they travel around the globe. In addition, a package that travels a long distance is more likely to sustain damage or go missing. Manufacturers and carriers make every effort to minimise the likelihood of damage or loss, but it is impossible to prevent all eventual problems. Finding out who is to blame for damaged cargo could take months, and it can be challenging to figure out whether it was stolen or lost. Shippers can at least make sure that they are reimbursed for their loss and informed of the circumstances to try and prevent future cases.


What kinds of freight damage are there?

There are four different categories of freight damage: loss, shortage, and visible. Visible damage is when the package presents obvious physical breakage.

Shortage is when only one or parts of the components of the shipment is received (missing pieces). And loss is when your package goes missing and is never delivered.  


Handling damaged freight

Accidents may occur during your shipments, it is a fact of life. But when they do, you should be ready and know what to do. Such a situation can get pretty stressful, so here is a step-by-step guide on how to proceed in the event it happens to you:

  1. Examine your freight: Examine the delivered freight carefully, paying attention to every little detail. Pay close attention to every component or item; if necessary, examine packages as there may be hidden damage. Find out what was taken, lost, or damaged. Do not be intimidated by the driver, who may claim to be rushing to complete the next trip; you have a right to capture all pertinent information.


  1. Document any damage: If you can, take notes and photos of everything. The more documentation you have, the better. Make sure the carrier is informed of the situation as soon as possible and make note of the damages and shortages on the Bill of Lading. Don’t undervalue the value of cooperation and communication; if the damage or shortage statement is passed on too quickly, carriers may attempt to salvage, redeliver, or return the freight.


  1. Speak with your broker or carrier: Make contact with the shipping firm. There is a minor possibility that your shipment will be delayed rather than lost entirely. Unfortunately, delays in transportation are to be expected and might happen for a variety of reasons. You should get in touch with the logistics provider as soon as possible. A third-party logistics provider will contact the carrier on your behalf and assist in resolving a number of additional concerns if you are working with them.


  1. Do not refuse shipment: Never decline a shipment and never throw away damaged cargo. Shippers might not get the full amount of the freight claim if they dispose of the shipment. Therefore, try to maintain all loads and packages whole.


  1. Finish the claim documentation: Complete the appropriate papers for a freight claim, shipping claim, cargo claim, or transportation claim. You are within your own rights to make a claim if anything has gone wrong. However, the profit (the distinction between the original value and the damaged value) is not recovered for the shipper by the freight claim. Therefore, the shipper must establish a fair financial value for the claim because it is required by law that the cost of the claim be kept to a minimum.A claim must be acknowledged by the carrier 30 days after it is initially filed. Within ten to fifteen days of receiving the load, concealed damages and shortfalls must be reported to the carrier.


  1. Ensure that you pay your bills: Please settle the freight cost as soon as you can. Even if the freight is broken, stolen, misplaced, or lost in transit, the shipper is still liable for the costs of transportation. The claim will be handled by an insurance claim.

Keep all required paperwork on hand:

  • A copy of the bill of lading
  • A copy of the freight bill
  • A duplicate of the bill indicating the purchase price for the goods
  • A duplicate of the packing list
  • A letter or standardised claim form specifying the shipment and the claim amount
  • Images of any irregularity or damage

Although receiving compensation for missing or damaged cargo sounds like a reasonable demand, it is still crucial to compile as much information and proof as you can to prevent future improper load handling.

Freight insurance

Freight insurance is the best thing you can do to protect your freight (and finances). It will offer protection of all or part of your shipment but will also give you peace of mind. In the event that something does happen to your freight, the insurer will cover its value, saving your company money.