Understanding Freight Claims: What to Do When Shipments Are Damaged

Your customer calls. The shipment arrived, but two cartons are crushed and the product inside is destroyed. Now what?

Freight damage is an inevitable part of LTL shipping. With each shipment handled 4-6 times through the carrier network, things occasionally break. What matters is how you respond. The actions you take in the first hour after discovering damage determine whether your claim gets paid or denied.

At delivery: the critical first steps

Inspect before signing

This is the single most important thing in the entire claims process. Before the receiver signs the delivery receipt, they must inspect the freight visually.

Look for:

• Crushed or punctured cartons
• Water damage or staining
• Torn stretch wrap
• Shifted or leaning loads
• Broken pallets
• Missing pieces (count against the BOL)

If the freight looks fine on the outside, check the piece count against the BOL. Missing pieces need to be noted immediately.

Note damage on the delivery receipt

If you see damage, write specific notes on the delivery receipt. Not just “damaged.” Specific descriptions:

Bad: “Damaged” Good: “Carton 3 of 5 crushed on northwest corner, visible product damage. Pallet broken, two deck boards snapped. Stretch wrap torn on south side.”

The driver may push back on letting you note damage. Stand your ground. You have the right to inspect freight and note exceptions before signing.

Never sign “clear” if there’s damage

If you sign the delivery receipt without noting damage, you’ve just made your claim exponentially harder to win. “Clear” delivery means you accepted the freight in good condition. Disputing that later is an uphill battle.

Photograph everything

Take photos immediately. Capture:

• Overall condition of the shipment
• Close-ups of damage
• The delivery receipt with your damage notes
• Labels and piece counts
• The carrier’s truck (showing the freight as it was delivered)

These photos are your evidence. The carrier wasn’t there when the customer opened the box. Photos prove what you’re claiming.

Concealed damage

Sometimes damage isn’t visible from the outside. You open a perfectly intact carton and find the product inside is shattered. This is called concealed damage, and it’s trickier.

Report concealed damage immediately. Most carriers require concealed damage to be reported within 5 business days of delivery. Some require 24-48 hours. The sooner you report, the stronger your claim.

Keep the packaging. Do not discard the outer cartons, stretch wrap, or pallet. The carrier may send an inspector, and they need to see the packaging to assess whether the damage happened during transit or was due to inadequate packaging.

Document everything. Same photo protocol as visible damage, plus photos showing that the outer packaging appeared undamaged.

Concealed damage claims are harder to win because the carrier will argue the damage happened before pickup or after delivery. Thorough documentation is your best defense.

Filing the claim

Gather your documentation

A complete claim package includes:

• Original Bill of Lading (showing what was shipped)
• Delivery receipt (with damage notes)
• Photos (at delivery and of damaged products)
• Commercial invoice (proving the value of the goods)
• Repair estimates or replacement cost (documented)
• Claim form (carrier-specific or standard)

Missing any of these can delay or doom your claim.

Calculate the claim amount

Claim the actual value of the damaged goods, not the retail price. This means the cost to you (invoice cost or manufacturing cost), not what you sell it for. Include reasonable costs for:

• Product replacement or repair
• Shipping costs to re-ship replacement goods
• Inspection fees (if the carrier sent an inspector)

Do not include lost profits, lost sales, or consequential damages. Carrier liability under the Carmack Amendment is limited to the actual value of the goods.

Submit promptly

File your claim within 5 business days of delivery for the highest chance of approval. Legally, you have 9 months under the Carmack Amendment, but every day you wait weakens your position.

Submit to the carrier’s claims department with all documentation. Get a claim number and confirmation of receipt.

The carrier’s response

The carrier has 30 days to acknowledge your claim and 120 days to resolve it. In practice, simple claims with good documentation are often resolved in 30-60 days. Complex or high-value claims can take the full 120 days or longer.

Expect the carrier to:

1. Acknowledge receipt of the claim
2. Possibly send an inspector
3. Request additional documentation if needed
4. Accept, deny, or make a settlement offer

If the claim is denied or the settlement is too low, you have the right to dispute. Provide additional evidence and escalate within the carrier’s dispute process.

Understanding carrier liability limits

Here’s where many shippers get an unpleasant surprise. While carriers are liable for damage under the Carmack Amendment, most carriers limit their liability per pound in their tariff.

Common liability limits:

• Standard carriers: $10-$25 per pound
• Some carriers: As low as $0.50 per pound for certain commodities
• Released value: Some carriers offer lower rates in exchange for reduced liability

Example: You ship 500 pounds of electronics worth $15,000. The carrier’s liability limit is $25 per pound. Maximum claim payout: $12,500. You’re short $2,500.

For high-value, low-weight freight, standard carrier liability is insufficient. This is where cargo insurance comes in. See our freight insurance guide for details.

Preventing damage in the first place

The best claim is one you never have to file.

• Package properly. Use quality pallets, adequate stretch wrap, and appropriate inner packaging.
• Label clearly. “Fragile,” “This Side Up,” and “Do Not Stack” labels actually help.
• Classify correctly. Higher freight classes for fragile items mean carriers know to handle with care.
• Choose quality carriers. Carriers with low claims ratios exist. Track this metric.
• Insure high-value freight. Don’t rely solely on carrier liability for expensive products.

How FreightSimple helps with claims

FreightSimple keeps complete shipment documentation in one place, making claims easier to file. Every BOL, tracking update, and delivery receipt is stored digitally and accessible when you need it. Our platform helps you track claims and manage the dispute process.

Ship with confidence knowing your documentation is always organized and accessible.