Mitigating your LTL Freight Claim

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At BAM Freight we see our carriers as partners and not just vendors. The fact is they have made significant investments in trucks, trailers, systems and personnel that make it possible for us to get our goods to market. We find that carriers are not void of their responsibility to pay for damages but do ask that help them mitigate the claim. As a partner we work with both the shipper, carrier and consignee to do this. Here are the different ways this we do this.

Mitigate at the Consignee

The first and best way is to ask the consignee to accept the product as damaged now that we have all documented the incident. The consignee will then go through the product and see what they can salvage. They file a claim for the un-salvageable product. The carrier is given a chance to inspect the product while it is still at the consignee. All damaged product should be kept in the warehouse until the claim process is complete.

Mitigate at the Carrier

If the consignee will not accept any of the cargo as is, we ask them if the carrier reworks / recoups the freight will they (the consignee) accept the undamaged portion of the order. If so, then we ask the carrier if they are willing to do this. If they are, then the carrier goes through and finds the good product and sends to the consignee. A claim is filed for the balance.

Mitigate at the Shipper

If the consignee will not accept anything, even if the carrier is willing to re-work it, then the next option would be to ship the freight back to the shipper free astray (free of charge). The carrier will then be given an opportunity to inspect the cargo if they haven’t already done so. The customer will review the product and return good product into inventory for re-sale and file a claim for the balance.

Send to Salvage

If the shipper is not willing to take any of the cargo back and will be filing a claim, then we ask the carrier if they can send the cargo to salvage and alert them that the shipper will be filing a claim for the full amount. This is the least desirable situation to be in because it can result in a stalemate between the shipper, consignee and carrier. Many carriers do have relationships with companies that will help them salvage product.

Don’t just say, “Dispose of it.”

In the case of partial rejection of a couple boxes some customers will just say donate the freight. This is only a  good option if you are still willing to pay the full freight charges. If a reduction in freight charges is expected or needed then a claim should be filed.

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Dave Stevens

Dave Stevens

Transportation Executive with experience in developing processes and controls for early stage start up companies. Specialties include: Sales, Marketing, Transportation, Trucking, Brokerage, Project Transport and Rail Operations.,Organizational Design, Process Development, Accounts Receivable Management, Leadership, and Business Start-ups.

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