Ways to cut damaged freight losses

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damaged freight.

Ask the sales representative when you place your order how the freight will be shipped. Get the specific details on how and by whom it will be delivered. If you have had a bad exPerience with the carrier named, ask for another. You have the right to request a carrier satisfactorY to You.

Become informed about the trucking situation in your area. Learn which lines are slow and careless. Slow service is often synonymous with damage. Be aware that damage occurs more frequently on less than truckload shipments since the freight may not be compatible.

Check the bill of lading coPY sent to you. Note the date of shipment and keep track of the time. If the shiPment is not in your hands within two weeks, ask the shipper to trace it. This can prevent potential loss and damage claim situations.

Examination is the second steP in handling freight. Tiain your employees to check arriving shipments carefully. They should not sign until certain procedures have been completed. The driver may protest, but he is required to wait. If he doesn't, make note of this on the receipt, as well as notifying his terminal.

Checking of a shipment should include:

(1) Ascertaining if the shipment is complete and unloaded.

(2) Making a notation on the receipt if the shiPment is short, indicating exactly what is missing if possible.

(3) Checking for damage to Packages including oil or water spills; ripped or torn cartons; retaped cartons; crushed corners; forklift damage to cartons on the bottom of a pallet; riPPed Plastic on shrink-wrapped palletsi crushed cartons on the bottom of stacked pallets.

(4) Refuse shipment if damage is extensive.

(5) Make detailed notations of acceptable damage on the receiPt.

(O Open cartons with obvious damage to check contents. (You may do this before signing receipt.)

(7) Moving damaged merchandise with packing material to a secure holding spot to await inspection by the carrier. (Damaged goods should never leave your place of business before inspection.)

If damage is discovered, the third step is for you to call the carrier's claims agent to request an inspection and claim forms. This usually must be done within 15 days. Make note of the date, time and to whom the call was made. Follow up with a written request. Since claims for loss and damage must be filed in writing within a specific time, often nine months, keep track of the time and stay on top of the inspection.

There is no guarantee that you will

Story at a Glance

How prevention helPs. ..car' rier selection .delivery in' spection. ..reciPient rights. .. deadlines. .alternatives to fil' ing claims.

be able to collect for damaged freight since there is no government agency with authority to force payment. Often a carrier will agree to an alternative to paylng cash for the damage, such as making monthly payments with interest, having his insurance pay claims under $5000 or issuing a demand note for the amount of the claim.

Carriers will often stall paying the claim by one of several ploys: demanding to haul more goods to apply against it; claiming the loss occured on a connecting carrier; demanding payment of charges before considering the claim; denying the claim because it was not received within time limits, or notifying the shipper of the damage and denying any claim made.

None of these are valid excuses. The carrier is responsible for delivering the freight in good condition. The ICC doesn't require payment before claims are settled or if shipment is not delivered. Careful documentation of dates can control the time factor excuse.

Several options other than filing for a claim are available to you. Inexpensive merchandise (under $25) is probably not worth the filing of a claim. Merchandise which is damaged but still salable at reduced cost can usually be sold for cost plus a small Profit. This often can offset the amount which would be collected on a claim since the freight company is obligated to pay only the discount price and gets the damaged merchandise for salvage.

If you opt for this method, there is still the possibility of filing a claim if the merchandise doesn't sell before the filing deadline. For merchandise damaged beyond resale, there is no alternative except filing a claim for damage or concealed damage.

Damaged freight is alwaYs a headache, but if you take the Proper remedies it is rarely fatal.

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