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Freightcom's Guide on Freight Claims
  • Cover some general guidelines on freight claims
  • What needs to be provided when submitting a claim
  • Freightcom's recommendations for a smoother claims process 

General Guidelines

• For any claim to be processed by the carrier, the freight charges must be paid in full. Freightcom will always include your freight charges in the claim amount when submitting the claim to the carrier for reimbursement. Please be sure to include a breakdown of any additional transportation costs that need to be included in the claim- i.e return charges, etc. Not paying the freight bill will work against your claim as proof of payment needs to be provided to the carrier when the claim is being submitted.

• To submit a claim follow these steps, click here

• Claims can only be filed for missing or damaged shipments. The claimed amount can only be for actual damage or loss, any incidentals including but not limited to loss of income/profits, time, etc. cannot be claimed.

• Carriers require a minimum of 30-90 days to settle claims

• It is essential to note that shipments where Freightcom Insurance has not been purchased are subject to the carrier’s maximum liability as established in their terms and conditions. Carrier liability will only apply for shipments that are not moving at the shipper’s risk of loss or damage.

• Disputes/refund requests for shipments moved with guaranteed services that didn’t meet the delivery requirements should be sent to accounting@freightcom.com for a speedier resolution (as opposed to the former process of filing a claim). The guarantee does not apply when delivery is delayed due to the package not complying with the service restrictions and conditions set out in the carrier’s terms and conditions of carriage, from events beyond carrier control (weather delays, customs delays, and/or any shipments requiring special handling) or any shipments moved at shipper’s risk of damage/loss (including liquids, glass, etc.).

Responsibility to mitigate loss (This applies especially to LTL freight claims and insurance claims):

Legally, as the owner of the goods, you must do what you can to keep the loss to a minimum. The loss amount can be reduced and mitigated by choosing to keep the damaged freight for a discounted price or having the goods repaired (if this would be cheaper than replacing the goods altogether). Reducing the loss generally expedites the settlement of your claim with the carrier and insurance company.

What Needs to Be Provided When Submitting a Claim

Invoice
1. Cost/purchase invoice
Damaged packaging
2. Photos of the damaged package (before unpacking)
Damaged product
3. Photos of the damaged product itself
Show shipment
4. Photos of how the shipment was packaged prior to shipping (if available)
Descriptions
5. A detailed description of loss or damage including the value of the claim must be provided

Freightcom's Recommendations for a Smoother Claims Process

• It is best practice to notify your receivers to inspect the freight before signing the Proof of Delivery (POD) and to note any damage or loss on this document. Be sure to note this both on your copy and the driver’s copy of the paperwork.

• Note: Courts have generally ruled that a consignee may not open the containers and examine the merchandise before giving a receipt to the carrier unless the containers indicate the probability of damage.

• Report any damages or loss as soon as possible following delivery to ensure the carrier will accept the claim.

• If you discover damage after delivery and the delivery receipt has a vague notation or no notation, you may find it more difficult to obtain prompt and satisfactory settlement of your claim.

• Ensure your shipment meets the packaging guidelines of the carrier otherwise your claim may be denied due to insufficient packaging:

UPS Packaging Guidelines

Shipping with Canpar Express


Do not use old or previously used boxes to ship your goods as this would be grounds for a claim to be denied due to improper packaging.

• Freightcom recommends to take a picture of your package or pallet with the shipping label attached prior to it shipping out. This will help in case your shipment gets lost/misrouted to help locate it faster but is also very beneficial to include in a claim as it shows how the package looked when it shipped out and can be compared with the pictures on delivery

Courier Terms and Conditions

Claims are not eligible if the shipment was accepted without notation of damage or loss. Maximum liability is up to $100.

Maximum liability is $2/lb. Damage/loss claims are not eligible for shipments where signature on delivery service is not selected.

Shipments that are transported by air are subject to the lower of declared value or approximately $30/kg.

Shipments that are transported by road are subject to the lower of declared value or approximately $11/kg.

Shipments are covered up to a maximum of $100 with the following exceptions:

If the item shipped falls under UPS’ prohibited articles, dangerous goods or shipper’s risk which includes but is not limited to liquids, ceramics, glass, televisions and perishables

Maximum liability is $2/lb. Damage/loss claims are not eligible for shipments where signature on delivery service is not selected.

Maximum liability is up to $2/lb per shipment

Carrier Inspection for Damaged Claims:

Carriers require the receiver to retain the original packaging and goods until an inspection can be completed by the carrier or it’s agent. If it is not kept, the claim is automatically denied (exceptions are sometimes made if pictures are sufficient but this is at the carrier’s discretion).

Be sure to provide the receiver’s phone number. If the carrier is unable to get a hold of them, this will delay the inspection process as the carrier may need to make arrangements to pick up the package. If the carrier is not able to get in contact with the receiver after multiple attempts, the claim will automatically be closed on their end.

Carrier Insurance:

If a value is declared on the waybill, carrier insurance would be applicable at an additional surcharge and the maximum value that may be declared to any single package is $5000. Anything in excess of this amount renders the carrier coverage as void.

Questions?

Do you still have questions regarding claims? Feel free to call us or email us and we’ll be happy to clarify any further questions you may have.

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