Concealed cargo damage is always the most frustrating freight insurance claim because it’s hard to prove who is responsible for the damage. Usually, no one or company is willing to compensate for it.
However, unfortunately, even if technology and SOP are advanced and adopted, losses inevitably occur. No one can eliminate the occurrence of cargo damage, or even monitor around the clock.
But this does not mean that we cannot take any action. As follows, we will discuss how to proceed with concealed cargo claims and how to mitigate risks, and how we can strive for a positive solution.
Concealed Damage Freight Claims, What’s That?
Concealed damage cargo claims are requested when the goods are damaged or lost during transportation, but they are not stated in Proof of delivery (POD). This is different from other types of freight because the goods are concealed in the package from start to finish. The consignee signs for the package without seeing the damage until opening the carton or using the product.
Since it is difficult to pinpoint where the damage happened and who should be responsible for the damage during transport, the concealed damage compensation becomes troublesome and complex.
What are the Causes of Concealed Damage?
Here are the common factors of common concealed cargo damage:
● Temperature Changes
●Temperature Controls Broken in refrigerated trucks
● Impacted or dropped packages during loading and unloading
● The goods are poorly packed.
● Improper handling of goods during loading, unloading, and moving
● Part(s) of shipment was stolen
Time Limits to Submit a Concealed Cargo Transportation Insurance Claim
The National Highway Traffic Safety Administration (NHTSA) requires that consumers (or the last party in the supply chain) submit a concealed damage claim within 5 days of delivery.
You should submit the claim to the carrier who brought the package to you unless you have the smoking gun of the responsible party if you’re the final party receiving the goods.
Who is Responsible for Damage Freight?
In common sense, the carrier has the responsibility to ensure safe transportation for your goods, but it is a challenge to prove the responsibility for the damage delivery, especially for the concealed damage of the goods which is not easy to notice. Under normal situation, most consignee signs the proof of delivery without inspection for the goods, you’ve just assumed responsibility for that freight. Is there any solution that can inspect the goods before signing the goods?
Yes, WAN-YO provides a great packaging solution, which is to use impact monitor on the goods.
By color changes on the shipping damage indicators, the consignee can quickly tell whether the goods have been impacted or put upsidedown during transit and mark it on the POD (proof of delivery). According to statistics, the damage rate typically drops by 70% or more when an impact monitor is in place.
How do I submit a claim?
Most third-party logistics providers allow for online claim processes. It’s easier to fill out a claim, provide pictures, attach the Proof of Delivery, include the tracking number, and work to prove your claim.
△ Tips for concealed damage freight claims
● Contact the carrier immediately. The sooner you submit a claim, the more likely you’ll prove damage and attain the claim payout.
● Inspect the freight before you sign the Proof of Delivery. Notate any potential issues like broken boxes, packaging, or shrink-wrap.
● Break down the shipment right away to inspect the freight.
● Take lots of pictures of the damage.
● See if your third-party logistics provider will take pictures of freight along the way with advanced technology tracking processes.
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Either party does not want cargo damage incidents to occur, but unfortunately, this problem is happening all over the world every day. If you would like to solve the delivery damage incidents, you may immediately contact us by clicking the button below, we can provide FREE packaging solutions and FREE samples to eliminate the problems!
Shippers will need impact indicators to protect your goods, or to provide evidence when freight damage really happens.
Many companies take product damage as part of their normal operations during transportation, and the labor cost and money loss caused have also accounted for a large part.
It may not come as a surprise that most Exporter’s number one pain is damaged goods, even after paying top dollar to reduce damages.