Filing Freight Claims Correctly Is Great. Preventing Them Altogether Is Better.
I continue to be amazed by the number of unrecovered claims and the burden of proof required not just the burden of documentation needed to file the claim, but the proof required to justify a change in SOPs (standard operating procedures) to stop the claims from happening in the first place....
I continue to be amazed by the number of unrecovered claims and the burden of proof required
not just the burden of documentation needed to file the claim, but the proof required to justify a change in SOPs (standard operating procedures) to stop the claims from happening in the first place.
An article in last months Logistics Management Magazine highlights that Unrecovered claims have a direct impact upon the bottom line of a companyand the tougher the economic times and thinner the margins the greater the impact. The piece continues to add that Generally speaking, in order to prevail on a claim, the claimant has the initial burden of proving its claim. The claimant must prove good condition at origin, damaged condition at destination, and the amount of its damages. After establishing these three elements, the burden of defense shifts to the carrier.
While a great article on transport law, what is still does not address is that a risk assessment, monitoring and training regimen integrated into a companys SOPs could address the issue and can reduce or even eliminate the claims from happening in the first place. No claims, no burden of proof required. While easier said than done, an assessment may be all you need to determine what can be done and support your processes.
If you do need that burden of proof, data recorders and indicators can support the analysis to determine the carrier mode at the time of the incident and the time and possession of the shipment to assign accountability.
A few quick things to note about filing a claim:
Assemble your supporting documentation as soon as possible.
Timeliness to file is essential and may be unique either by contract or carriers tariff conditions (so get to know your carriers).
Make sure you file with the insurance carrier rather than the transport carrier.
What have you done to reduce your damage related claims?
For more information send an inquiry directly to ShockWatch
Assessing the Total Cost of Damage
Compartmentalization is one of the biggest hurdles to saving money and increasing efficiency throughout an organization. There’s a naïve belief in organizations that if each department operates efficiently, the overall organization will be efficient too. While this is true to a degree, it overlooks the ways decisions in one business unit affect outcomes in another.
Developing a Risk Management Program
Multiple types of monitoring devices are available to ensure shippers have the data they need at a price they can afford. For example, electronic data loggers monitor a range of impact thresholds, the direction and duration of impacts, and their G-force, along with the event’s GPS coordinates and time of occurrence. Some options record thousands of shipments and can generate trend reports that span months to years.
Supply Chain Conditions May Damage Even Rugged Consumer Electronics
A cell phone, dropped from ear height, can experience an impact of up to 1,000 Gs. Even though that phone, like other consumer electronics, is designed to withstand a certain level of impact, it still can be damaged. During shipping, even though devices such as cell phones, laptops, televisions, headphones, video game controllers, etc. are protectively packaged, they are still at risk from supply chain mishaps. The damage from these events may go unnoticed, however, unless a package shows visible signs of damage – a crushed corner, for example.
Minimizing Unsalable Product
For the customer, receiving goods with dings, dents or temperature issues may indicate serious problems in the supplier’s logistics organization. Even when there is no actual product damage, the appearance of damaged packaging makes buyers question the reliability of the product and the commitment of the manufacturer to develop and deliver products that meet agreed-upon standards.