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March 7, 2019
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Common Claims for Premium Distribution Services

claims

Although damaged freight and the resulting issues for customers are not fun for either party, it is part of doing business in the modern global logistics industry. Many shippers are under the impression that freight claims are designed exclusively to recover losses from accidental damage, but in reality, these claims can also sometimes reimburse lost profits. Carriers today require hidden damages to be reported immediately and within 5 days

Defining a Freight Claim

The exact definition of a freight claim is a legal demand issued by a shipper (or third party logistics company on their behalf). Other terms for a freight claim include transportation, shipping, cargo, or loss and damage claims. The goal of this type of claim is to restore the transaction to the terms on the initial Bill of Lading.

Most Common Types of Claims

In recent years, shippers have been filing four specific types of freight claims more frequently than others. Those four freight claims include the following:

Damage

Damage claims are the most regular occurrence in the global logistics business. This type of claim happens when an item has visible damage during transit or upon arrival. The loss must be documented on the Bill of Lading or delivery confirmation paperwork to be eligible for a claim.

Loss

Another common type of international shipping claim is a loss; this can occur when the goods are picked up from the shipper without ever reaching their destination. To be eligible for this type of claim, the Bill of Lading must verify pick-up while lacking a signature on the delivery confirmation form.

Shortage

While this claim is not entirely different from a loss claim, a shortage claim is defined as the recipient not receiving their entire shipment. For people to avoid a shortage claim, it is vital that both the shipper and receiver verify the number of items listed on that Bill of Lading against what they are receiving.

Concealed Damage or Shortage

The concealed damage claim is the least common freight claim, as it is the most difficult to obtain. The reason for this is that concealed damage is difficult to note on the Bill of Lading, as the damage is often uncovered during the process of opening their goods.

The key to avoiding a freight claim is for both the shipper and receiver ensure accurate record keeping during the shipment of goods. Receivers should always take time to open and inspect their cargo to ensure there is no damage (although at PPLUS this is an incredibly rare occurrence).

When you choose a trusted global logistics company like PPLUS Global Shipping, you can rest easy knowing we understand trade secrets of how to reduce damage, pack appropriately, and utilize only seasoned, reliable carriers.