SMALL PARCEL AUDIT
FreightOptics technology has the capability of identifying damaged packages based on the status of the package with the carrier.
This last type of freight claim pertains to unseen damages in the packaging, or a shortage in the package contents. This damage is more difficult to detect when you are initially inspecting the freight to make sure everything is in proper condition. You may sign the POD and note that everything is fine; however, when you open the package, you may find something inside is damaged or even missing altogether. The more information you have regarding your shipment, the better chance you will have for your claim to be accepted. If you know what is being shipped to you based on the bill of lading, then you can make sure to review the contents of the package(s) before signing the POD. If you are able to identify the concealed damage or missing contents before you sign the POD, then you will be able to recover the full value of the shipment. If not, then you may only recover one-third of the value of the shipment.
At FreightOptics, we believe “knowledge is power.” The more information we can help provide regarding freight claims, how they occur, and how you can best manage them, the better off you will be.
There is a responsibility held by all parties in the shipping process (shipper, carrier, consignee, freight transportation logistics provider) to do what is reasonably necessary to mitigate the amount of potential freight damages. But how will you ever really know what is causing your freight damage claims and how to minimize these claims if you don’t have a way to collect, organize, and analyze your data? The problem is, you won’t truly know and you will end up having to guess. Unfortunately, a guess can result in working with a mediocre carrier over an A-rated one. Or, it can result in you dismissing your best carrier when it is actually your own company experiencing a problem at a DC or with their own packaging.
The following is a step-by-step process to determine the proper course of action to take when there is an issue with your freight and damage package claim process.
- Take a close look at delivered packages and inspect all of the contents. Pay attention to every part of the shipment. Remember to open crates if needed, as there could be unseen damages. Through inspection, determine what is stolen, missing or damaged. Remember, don’t be intimidated by a driver who is rushing you because they are in a hurry to get to their next route. You have a right to review all of the details pertaining to your shipment.
- Write everything down and take photos, if possible. The more you can document, the better off you will be regarding your claim. Note any damages and/or missing contents on the bill of lading, and make the carrier aware of the situation as soon as possible. Don’t underestimate the importance of communication and cooperation. Carriers can try to salvage, redeliver, or return the freight if the claim information was provided quickly enough.
- Do not refuse a shipment or discard damaged freight. If a shipper discards the freight, they risk not being paid the full freight claim amount. As a result, keep all freight and packages as intact as possible.
- Fill out the proper freight claim, shipping claim, cargo claim or transportation claim paperwork. The claim is a legal request to a carrier for reimbursement due to the damaged or lost freight . The freight claim will recover the costs for the shipper, but not the profit. It will cover the difference between the original value and the damaged value. Therefore, the shipper must determine a reasonable amount for the claim. It is their legal obligation to minimize the cost of the claim.The carrier has to accept the claim within 30 days of initial filing. Concealed damages and/or shortages should be reported to the carrier within 10-15 days of receipt of the shipment.
- Pay the freight bill as soon as possible. The shipper is still responsible for payment of the shipment, even if there is damaged, lost, or stolen freight. The claim will be processed by an insurance company.
- Keep all necessary documents, such as:
- Copy of the bill of lading
- Copy of the paid freight bill
- Copy of the invoice showing the amount paid
- Copy of the packing slip
- Standard claim form or letter identifying the contents of the shipment and the claim amount
- Photos of the damage
FreightOptics submits the insurance documents with each claim.
It is essential for the shipper to supply the necessary documentation that details the repair cost or replacement value of the merchandise, up to the declared value, as requested in the Damage/Loss Notification Claim letter. This documentation can be provided either when the damage is first reported, or after the Damage/Loss notification is issued.
Supporting documentation includes: original invoices, purchase order, or other information required by UPS/FedEx.
Once the documentation is provided, UPS or FedEx will proceed with the following:
- Determine the value declared, if any, for the contents of the package.
- Verify that the product falls within the guidelines of the UPS contractual terms with the shipper.
A UPS/FedEx mailing address and fax number will be provided in the Damage/Loss Notification claim letter. In addition, instructions on how to submit supporting documents online will be provided.
Freight Optics will continue to follow up with the carriers regarding the claim. Once the claim is completed for the damaged product, Freight Optics will continue to follow up after submission of all the proper documents. Since the claims process can be time-consuming, each organization has to consistently follow up for an update on the status. FreightOptics will be your partner by continuously following up with the claims department and will keep you up-to-date with the progress of the claim.
CLAIM AUTHORIZED
If the claim is issued, a Damage/Loss Notification claim letter will be emailed, faxed or mailed to the shipper of record. UPS will not send the claim letter to a recipient.
If the claim is not approved, UPS will notify the shipper. The shipper can then contact UPS with any questions or concerns.
CLIENT IS INFORMED OF THE CLAIM
After the company has received the claim with the proper documentation, they will confirm receipt of the claim and attempt to settle it within 30 days. However, the investigation of some claims may take longer. If your claim cannot be settled within 120 days, FreightOptics will notify you and inform you as to what you need to do to conclude your claim.
FreightOptics will continue to keep you informed in 60-day intervals until your claim is settled.
FreightOptics may refer your claim to other carriers if they were involved in the shipment’s transport. If a referral is made, FreightOptics will notify you accordingly. It may take longer to investigate a connecting line claim than it does if there is only one carrier involved. If a delay in settling your claim occurs, we ask for your understanding. However, if you believe the delay is excessive, you may call or write to us concerning the status of your claim by either using the online status tool or calling the voice response system.
CARRIER PAYS THE CLAIM TO CLIENT
Once the claim has been approved and FreightOptics receives the supporting documentation identified in the claim letter, then payment will be processed. The claim payment may differ from the original amount requested, depending on the documentation provided. An explanation regarding the difference in payment amount, if any, will be printed on the check stub. Typically, claim checks are mailed to the shipper’s billing address on file 3-5 business days after FreightOptics receives the required documentation. In the event the claim is not approved for payment, FreightOptics will contact the shipper.
