DFA Guide: What to Do When Your Freight is Damaged?
Accidents happen, and for those members who have been in the shipping game for a while, you will have seen your fair share of damaged freight. It's never a good feeling when your damaged shipment shows up at your doorstep. But the key is not to panic. You've got options, this week we're taking the opportunity to walk you through them.
Identifying Damaged Freight
First things first, you need to know how to spot damaged freight. There are a few different types of freight damage to keep an eye out for:
The most important rule? Never sign the Bill of Lading until you've thoroughly checked your freight for damage.
Documenting the Damage
You have spotted the damage - now it's time to get documenting- take some pictures using a camera and note down important details. Hold onto any paperwork that might come in handy, the more evidence you gather, the smoother the claims process will be.
A study found that 21% of large packages arrive damaged, so trust me, you're not alone in this. Documenting the damaged cargo is your best defence.
Notifying the Carrier
Your next step is to loop in the carrier. Let them know you've got damaged freight on your hands ASAP. The sooner you notify them, the better.
Keep your cool when you make the call. Getting angry or pointing fingers won't help your case. Just stick to the facts and let them know you're filing a damaged freight claim.
Filing a Freight Claim
When it comes to filing a freight claim, this is where that documentation comes in handy. You'll need to submit a formal freight claim to the carrier, and the more evidence you have, the better your chances of a successful outcome.
Make sure you know the carrier's specific process and deadlines for filing a claim. Miss a step or a date, and you could be out of luck. Keep records of everything, from your initial call to the final resolution.
Understanding Freight Insurance and Liability Coverage
Freight cargo insurance is like a safety net for your cargo. If something goes wrong - whether it's damage, loss, or theft - you're covered. There are a few different types of freight insurance policies out there:
The freight insurance policy for you will depend on what you're shipping , how it's traveling, and your overall risk tolerance.
Carrier Liability vs. Freight Insurance
Carrier liability, on the other hand, is the bare minimum coverage required by law. It's based on the weight and freight class of your goods, not their actual value. And if you want to file a claim, the burden of proof is on you.
Freight insurance offers more comprehensive protection. You're covered up to the full value of your goods, and you don't have to prove fault to file a claim. It's like the difference between a basic warranty and an extended service plan.
Step-by-Step Guide to Filing a Freight Claim
1. Gather Your Documentation
Remember all that documentation I told you to keep? This is where it comes in handy. You'll need to submit several key pieces of information with your claim:
Make copies of everything and keep the originals for your records. You'll want to have backups in case anything gets lost in the shuffle.
2. Notify the Carrier
Your next step is to formally notify the carrier of the damage. Do this as soon as possible, as most carriers have time limits for filing freight damage claims.
Include a written description of the damage, along with your intent to file a claim. This is where your documentation comes in - the more specific you can be, the better.
3. File the Claim
Now it's time to submit your formal claim. Each carrier has their own process, so make sure you follow their specific guidelines.
Typically, you'll need to fill out a claim form and submit it along with your supporting documentation. Make sure everything is complete and accurate - any missing or incorrect information could delay the freight claim process.
4. Follow Up
Once you've submitted your claim, don't just sit back and wait. Follow up with the carrier to make sure they received everything and to check on the status of your claim.
Record every interaction, including who you talked to and when. Having a detailed record will be invaluable if you need to take things to the next level later.
5. Negotiate and Resolve
Hopefully, your claim will be resolved quickly and to your satisfaction. But if not, don't be afraid to negotiate.
If the carrier offers a settlement that's lower than what you think is fair, counter with a higher amount. Justify your request with your documentation and any additional evidence you have.
Resolving a claim can be a lengthy journey. Stay the course with patience and determination, consistently checking in until you reach the finish line.
DFA Key Takeaway
Freight damage may be a headache, but with expert guidance and knowledge you can to tackle it head-on. Remember, documenting the damage and notifying the carrier promptly are crucial steps in the freight claims process. And don't forget, investing in proper packaging and understanding your insurance options can go a long way in preventing freight damage from raining on your parade.
The key to preventing freight damage is to think ahead and be prepared. Anticipate the risks and take steps to mitigate them.