Freight Claims Process from Filing to Resolution

What Is a Freight Claim?

A freight claim (also called a cargo claim or loss and damage claim) is a formal demand by a shipper or consignee against a motor carrier for financial compensation resulting from loss, damage, or delay of freight while in the carrier''s custody. Freight claims are governed by federal law under the Carmack Amendment (49 USC 14706) and are one of the most common sources of disputes between shippers and carriers in the trucking industry. Handling claims properly is critical for both parties to protect their financial interests and maintain business relationships.

When to File a Freight Claim

A freight claim should be filed whenever freight arrives at its destination in a condition different from how it was tendered to the carrier. Common claim scenarios include:

• Visible damage: Obvious physical damage to packaging or product discovered at delivery
• Concealed damage: Damage not apparent until the freight is unpacked, typically discovered within 5 to 15 days of delivery
• Shortage: Missing pieces, pallets, or cartons from the shipment
• Complete loss: The shipment never arrives or is lost within the carrier''s network
• Temperature failure: Refrigerated freight that arrives outside the specified temperature range
• Delay damage: Time-sensitive freight that loses value or becomes unusable due to transit delays

The Claims Process Step by Step

Step 1: Document at Delivery

The most critical moment in any freight claim is at delivery. The consignee must:

1. Inspect all freight before signing the proof of delivery
2. Note any visible damage, shortage, or discrepancy on the delivery receipt before signing
3. Take photographs of the damaged freight, packaging, and trailer condition
4. Keep all original packaging material for inspection
5. Notify the carrier immediately of any issues

Signing a clean delivery receipt without noting exceptions makes it significantly harder to prove the damage occurred while the freight was in the carrier''s possession.

Step 2: File the Claim in Writing

Under federal regulations, a freight claim must be filed in writing with the carrier within 9 months of the delivery date (or within 9 months of the reasonable delivery date for lost shipments). The written claim must include:

• A clear statement that a claim is being made (use the word "claim" explicitly)
• A specific dollar amount being claimed
• Enough information for the carrier to investigate (PRO number, BOL number, dates, origin, destination)

Step 3: Provide Supporting Documentation

To support the claim, the claimant should provide:

• Copy of the original bill of lading showing the shipment was tendered in good condition
• Copy of the delivery receipt showing noted exceptions or damage
• Photographs documenting the damage
• Invoice or proof of the commodity''s value
• Repair estimates or replacement invoices
• Any correspondence with the carrier regarding the issue

Step 4: Carrier Investigation

Once the carrier receives a properly filed claim, they must acknowledge receipt within 30 days and either pay, decline, or make a settlement offer within 120 days under FMCSA regulations (49 CFR 370). During investigation, the carrier may:

• Request to inspect the damaged freight
• Review driver delivery notes and proof of delivery documentation
• Check internal handling records for evidence of when damage occurred
• Evaluate whether any Carmack Amendment defenses apply

Step 5: Resolution

Claims are resolved through one of four outcomes:

1. Full payment: The carrier accepts liability and pays the full claimed amount
2. Partial payment: The carrier offers a reduced settlement, often due to depreciation, salvage value, or disputed amounts
3. Denial: The carrier declines the claim, typically citing one of the five Carmack Amendment defenses or disputing that the damage occurred while in their custody
4. Compromise: Both parties negotiate a mutually acceptable settlement

Protecting Against Claims as a Carrier

• Inspect all freight at pickup and note any pre-existing damage on the bill of lading
• Take photographs at pickup and delivery to document freight condition
• Maintain proper cargo securement throughout transit
• Handle freight carefully during loading, unloading, and transfers
• Keep your operating authority and cargo insurance current with adequate coverage limits
• Respond to claims promptly and professionally within regulatory timelines

Carriers with clean inspection records and low claims ratios build stronger reputations and are better positioned in contract negotiations.