Freight Claim Management: Are you doing it correctly? (As a company)!!!

FREIGHT CLAIM MANAGEMENT; Q&A

This Q&A article will allow you to assess if the freight claim management system in your international shipping business is right or not.

Firstly, what is freight claim management?

In the world of international shipping, freight claim refers to the legal demand by a consignee or shipper wherein there is financial reimbursement needed for the loss or damage of the consignment. A detailed description of the damages is given in the delivery note at the time of delivery.

If governed by a contract, the terms of the agreement of the shipment will determine the carrier’s liability. Often contracts of international courier companies will adopt common carrier tariff rates.

How do you file a freight claim?

International courier companies must identify the shipment for investigation and the carrier. They should record the type of loss faced by them and the amount of freight claim must also be stated. Finally, international logistics firms must demand a certain payment for the damage.
It is important to provide the shipper’s name, vehicle number, origin and delivery date.
What are the important details of a freight claim?
International shipping companies during their freight claims must give a detailed description of the loss or damage caused, mention the commodities that were affected, quantity of units, extent of the loss suffered by them, value per unit, the salvaged amount, the net loss borne and a brief description of the worldwide parcel services process that led to the freight claim.
What does amount of freight claim mean?
It is important that the international courier companies filing the freight claim correctly mentions the amount of the loss faced by them. It is important to have a systematic way to determine the amount of freight claim. The advisable practice for international logistics firms would be to state the full potential of the loss. If an amount lesser is finally determined, amends on the amount can be made.
What are the different documents that are needed to support the freight claim?
When international courier companies file freight claims, here are documents that are needed and applicable:
• The original bill of lading
• Proof of the value or amount of loss on the commodities
• Reports of inspection
• The freight bill that has been paid
• Copier of requests for inspection of the freight claim
• Notification of loss
• Carrier’s waiver of inspection
• Some special documents such as condemnation certificates, impact records and package certifications.
Remember, freight claims have deadlines.
These are the guidelines to be followed by international courier companies.