LTL Claim FAQs

LTL Claim FAQs

When should I file my claim?

Concealed Damage: Need to be reported to the carrier within five (5) calendar days (in writing). 

Per the National Motor Freight Traffic Association (NMFTA), if no damage/shortage exceptions were noted on the Delivery Receipt (DR) at the time of delivery, shipments that are later found to be damaged or have shortage will be considered "concealed." For all concealed claims, the motor carrier must be given a written notice within five (5) calendar days from the date of delivery. This notice is intended to communicate to the motor carrier that damages/shortages were found after delivery has been completed.

This notice does not guarantee the claim will be approved to be paid, as it is still incumbent upon the customer to provide enough physical evidence to prove the carrier's negligence resulted in damage/shortage to the cargo while in transit.

Noted Damage and/or Noted Shortage: Need to be filed within nine (9) months of delivery. 

What is required to file a claim? 
  1. BOL copy.
  2. POD copy.
  3. Proof of value (copy of invoice from vendor or supplier, retail invoice, repair invoice, etc.).
  4. Pictures of damage (including inner and outer packaging) .
  5. Inspection Report – This needs to be on company letterhead and as detailed as possible. MUST include the following:
    1. Commodity name and description (what is it used for, what it does, etc.).
    2. Number of pieces received.
    3. Number of pieces damaged.
    4. Weight per each damaged piece (in pounds).
    5. Complete description of the damage:
      1. If the product is not salvageable, explain why. 
      2. If the product is salvageable, include repair cost/salvage value. 
** Note: The receiver needs to hold on to all packaging and product(s) until the claim is resolved. The carrier may want to inspect the freight and this is usually done at the original consignee.

What is the carrier’s limit of liability per shipment? 
Different carriers have different limits of liability. Generally, if the carrier assumes liability, the claim payout will be determined by the cost of the product (proof of value) or the weight and class of the shipment, whichever is least. 

Example:
Customer shipped one pallet that is 225lbs., light bulbs, class 85, via FedEx Freight.
FedEx’s limit of liability states that the maximum payout for class 85 is $15.00 per pound. 
In this case, the maximum limit of liability would be $3,375.00 (225 lbs. x $15.00).



Note: Carrier liability is not insurance and pays only for proven negligence based on weight and commodity class.  

Example:
The actual damage was to 15 light bulbs that weigh a total 2 lbs. 
Based on the above described limits, FedEx would only be liable for $30.00 (2 lbs. x $15.00).

How long does it take for a claim to be resolved? 
Carriers legally have 120 days to settle a claim. If the claim is going to take longer to resolve, the carrier is obligated to send notice(s) stating the reasoning for this and can do so every 60 days.

Do I (customer) have to pay the freight charges when there is a claim open on a shipment? 
Yes, the freight charges need to be paid even when there is a damage/shortage/complete loss claim. When filing a claim with the carrier, the freight cost can be included with the claim and/or request relief for the freight charges. 

What happens when a claim is approved or denied?  
Approved: Carrier sends payment and closes out the claim.
Denied: Carrier sends denial letter and supporting documents explaining the denial. Customer has option to submit rebuttal to denial of claim and provide additional documents.  

How do I file a claim? 
Please email claim details and all supporting documents to SUPPORT@SHIPOPTI.COM. 
Make sure to include the BOL or carrier tracking (PRO) number in the subject of the email. 



Attachment(s):
GlobalTranz Cargo Claim Form





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