By Matt Sysko
Freight claims can be a bit scary at times. Admit it, it’s a nightmare! Who damaged it? How did it get damaged? Was it the carrier’s fault? Concealed damage?How do I get it replaced? Will I be compensated for it?
Hi, I’m Matt Sysko, Audit Logistics Freight Claims and Research Manager. I’m here to explain the claims process and some exciting new updates within ALOT©, our online tracking inventory tool.
As you already know there is potential for damage in any shipment. Despite everyone’s best efforts to avoid accidents, they do happen. The contents of apackage can become damaged for a variety of reasons, such as inadequate packaging, weather, a traffic accident, or improper handling by the carrier.
Freight Claim Processing in ALOT©
Processing claims involves several steps, including, gathering documentation, and entering the claim in a tracking environment, submitting the claim,generating follow‐up to the carrier’s letters, generating claim forms and entering claim updates throughout the “life” of the claim. There are numerousfeatures within ALOT© that assist me with freight claim processing.
Freight Claim Reporting in ALOT©
ALOT© provides a number of management reports that assist me with tracking claims and determining the efficiency of our carriers. It also includes reportsbased on claim status, reason for closure, and amount recovered. There are also accounting reports, including specific details and performance charting.These reports will be sent out quarterly or when a close out is requested by the purchasing agent. The reports have several different delivery formats: AdobeAcrobat PDF (*.pdf), Microsoft Excel (*.xls), Internet HTML (*.htm), and Rich Text Format (*.rtf).
Life of a Claim
As you can tell, a very specific claims process has to be followed with the carrier to ensure that full compensation is received for the damaged items under theterms of the carrier’s insurance. Each claim process will be specific to the item(s) damaged and whether or not it can be repaired.Contacting your Audit Logistics Project Manager immediately to notify them of the damage is the first thing that must be done. To be safe, it is important tocall as soon as possible, preferably within 15 days. You then will be informed of the next steps in the claims process. Missing a deadline can cause the claim tobe delayed or immediately dismissed without further consideration.
Claim Filing Checklist
Prior to submitting your claim, please ensure it includes the following information:
Important Terms
Cargo Claim: A “Cargo Claim” is a demand made upon a transportation company for payment, due to freight loss or damage alleged to have occurred while shipment was inthe possession of carrier. Pursuant to the National Motor Freight Classification (NMFC) Uniform Bill of Lading, all cargo claims must be filed within 9 months.
Concealed Damage Freight Claim: Internal damage not apparent until the package has been opened, you only have 15 days after delivery of the shipment to report any concealed damage. Ifyou do not report within this 15day period, the carrier may decline the claim.