If you are part of an industry that relies heavily on shipping, you need to know the basics of responsibility management in case of damaged freight. Someday, you will come across the case of damaged freight and it pays to know beforehand about it.
What is a freight claim?
In the event that shipped items are lost or damaged in transit, freight claims are the means of recovering some of that lost value. This works like any other insurance scheme. And like with any other insurance scheme, it is very important to be proactive and take all of the proper and appropriate steps. Not every lost shipment entails a freight claim. In order to file for one, you will have to be certain that you have properly filled out all the relevant freight claim forms in advance. Submitting a freight claim without supporting freight claim forms and other documentation does not make you eligible for a claim. Needless to say, all freight claim forms you fill out should be kept on record and reviewed by a qualified professional.
Terms of freight claims
It is important to note that when you ship items, you are not the only party who is responsible for a variety of freight claim forms and paperwork. Both parties, i.e., the shipper and the receiver have certain types of responsibilities when it comes to making a claim on freight. It pays to know both sides of this claim.
Shipper’s responsibilities
The shipper is held responsible for proper packaging, proper marking all the packages, proper description of items in all the documentation. Of most freight claims filed, improper packaging is implicated in a large fraction of issues that crop up in this regard. One can clearly see that a lot of issues here are the shipper’s responsibilities.
Receiver’s responsibilities
The receiver or the consignee is responsible for documenting any loss or damages that might result from the delivery of freight. In case, the receiver does not document the loss or damages, or fails to note the details in an appropriate manner, then a freight claim cannot resolve the issue.
So, both the shipper and the receiver need to maintain prudent records of the shipment in order to be eligible for freight claims.
In transit Visibility
Most claims are the result of unanticipated circumstances. No one wants to intentionally damage a shipment in transit. To eliminate risks as much as possible, the business enterprise can implement in transit routing, carrier selection, and exception management. There are several consultants who can help implement enterprise-level, cloud-based software that will provide real-time shipping intelligence critical to avoiding emergency situations that can end in damage. Real time tracking of shipments aid in letting the shipping carrier knows of a discrepancy immediately. That helps in minimizing loss.
While it is impossible to have a scenario where shipment losses are done away with, much can be done to reduce the number of freight claims. Diligent record maintenance goes a long way in securing your interests.
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