Types of LTL Freight Claims

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31 Mar, 2021

Types of LTL Freight Claims

Let’s face it, there comes a time where every logistic company would have to go through damages and/or losses. It is unfortunate but freight damage does happen and dealing with it is quite difficult. This is where freight claims come in to help the consignees get a monetary reimbursement for any loss or damage.
We, in this article, will discuss what are different types of LTL freight claims but first, let’s start with everything basic like what is Less than a truck load (LTL) and what actually is a Freight Claim.

What is LTL?

LTL, which stands for Less than a Truck Load, aggregates of shipments from various shippers and transporting them to their final destinations by organizing and reorganizing shipments at every terminal. LTL generally weighs about 1,000 pounds on an average. LTL carriers, seldom, stop at the terminals in the middle because of their need to reorganize the shipments.

What is a Freight Claim?

Freight claim is a legal document which can be lodged by a consignee to a carrier for financial reimbursement if there is any loss or damage happened to the shipment. These freight claims can also be known as shipping claims, damage claims or loss claims. The receivers must make sure that they file any kind of claims within 9 months of the freight delivery. Usually on claiming, the claimants cannot expect making profits out of the claim but in rare conditions, this might be possible.

Types of LTL Freight Claims

The LTL freight claims can be summed up in six different types. It is very important for our customers to know about these types of LTL freight claims which can make the process of filing the LTL freight claims easier.

1.Damage Claim

The damage claim can be filed when the physical damage is apparent. Many a times, due to constant loading and unloading process in LTL shipments, the freight gets damaged. The damage can also happen due to either shifting while in transit, forklift damage or other freight falling on top of it. This type of claim will only be accepted if the damage is evident and if it is also noted on the Proof of Delivery (POD).

 

2.Loss Claim

This is the type of claim which is filed when the consignee does not get the shipment at all. This happens when the freight has been properly documented as being picked up but due to the misplacement or the loss of the commodity, it has not been delivered to the required location. Such mishappenings are possible when the LTL freight is being organized and re-organized at different terminals. If there is a proof that the shipment left its original place of loading (BOL) and no POD is available, then the consignee can initiate filing the loss claim.

3.Shortage Claim

The shortage claim can be filed when there is some missing LTL freight and the full freight did not arrive its final destination. Sometimes, due to the nature of the LTL shipment, commodities happen to get separated during the shipment process. Other reasons can be incorrect information detailed on the BOL, commodities falling off the palette, etc. Therefore, it is highly important that the BOL carries all the details of the LTL commodities that are requested to being shipped by multiple customers. Similarly, the receiver must be equally responsible for noting down any shortages on the POD.

4.Refused Claim

The consignees have all the rights to refuse a shipment if the delivery has been made late due to multiple shipments aligned in LTL shipment process. Also, the customer can refuse the claim if the freight is either damaged or wrong, or just basically are unhappy with the state of their commodity. Once the customer refuses the shipment, it is returned back to the carrier. You can either ask them to have it shipped it back to you, have it sent to other address or just get it discarded. In most of the cases, the consignee will not have to pay for their invoices.

5.Concealed Damage Claim

The name of the claim says it all. When the damage is not evident or easily noticeable and is not noted on the POD, then the consignee collector can file a concealed damage claim. The only problem with this type of claim is that it is difficult to prove that the LTL freight received was damaged, once the POD has been signed. The shipper must be notified of the concealed damage within 5 days of the delivery of the damaged freight. The suggested way to get repaid is to make the driver accept the damage/loss and get it noted on the POD once the commodity is received. If not, the consignee will be eligible for only a partial reimbursement.

6.Concealed Shortage Claim

Just like the concealed damage claim, the concealed shortage is difficult to prove if there is no evidence. The concealed shortage claim is filed when the receiver does not receive the full quantity of their LTL freight and the neither the shortage is detailed on the POD. Due to the continuous arrangements done to the LTL freights during the LTL shipping process, the missing commodity is not evident until the consignee receives the delivery. In this situation, the time plays a big role since there are only 5 days within which the receiver should file a concealed shortage claim. If there is delay, the claim filed can be denied by the carrier.

Freight damages can, sometimes, be nerve-racking and stressful to deal with but with the right information on such LTL freight claims, you can manage your shipments with sheer confidence. The more you know about your freight and the entire logistic process, it becomes easier to know what to do when the worst-case scenarios appear in front of you. We, at LSI World, know our responsibility to treat our customers and their freight with utmost care. But if something goes wrong, we are always here to help.

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