mean she really laid on me, yelling the words that I thought was a man tells a stranger that we only used 2 times on the phone. He went on to say that he wanted to send me pictures of the damage and to learn the process so that he could file his claim. The product was damaged beyond recognition. I am completely and totally in shock about the whole experience. I have to schedule time to chat with my manager to try to understand what had just happened. We were able to take care of charging the customer and he will continue to send us to my surprise. My words Rang managers still clear that this very day "Get use to it, it happens a lot in this business!"
Fast forward 15 years and to be honest I do not think "damage" is never something you get used to, but certainly a part of the freight business. Most customers would rather take a trip to the dentist than having to file a damage claim. ie see the consequences of damage claims.
1) The consignee (person receiving the goods) has to accept products that they hope to sell for a profit, or use to get a profit, which now has to sign off as guilty . That's like a kid at Christmas unwrapping cheerfully present their pieces only to discover it was broken.
2) The shipper now has to resubmit the product to their customers before the customer decides to go elsewhere to buy a new product.
3) The shipper loses inventory, and if they are building in the order they now have to accelerate the material from their manufacturers, costing them more money.
4) In the meantime, the consignee will have to hold onto the damaged shipment until the damage claim is filed. So every day (up to 30-45 days) they go to their warehouse they are looking at the damage piece reminds them of losing profit and frustrations of receiving damaged goods. Talk about the "damage" control-no pun intended. No one is happy with the chaser!
This article is focused on providing some basic information for shippers who may have encountered prejudice and you general guidelines to help them better understand what is happening.
Carrier limit LIABILITY:
All Carriers have a limit of liability. Border of the Carriers liability cap as to what they pay per pound for a loss or injury. Most of the carriers' limits of liability is based on the type of shipment. Example, class 50 to $ 2.00/lb for some carriers may be ($ 1.00/lb for others) and class 300 ($ 25.00 per lb.) This is the Carrier's cover regardless of the amount of goods. Carriers responsible for any items used or refurbished has a maximum liability of $ .10/lb. Some Carriers will pay a $ .50/lb. But always remember that as a shipper you will have the option of taking extra insurance either you own Insurance Company, or by Carrier.
Released amount:
This is the value / lb in which a shipper release the goods. Usually this regard NMFC items where the shipper is required to declare a value for the rate (* class) of a cargo is determined by the released amount not to exceed (RVNX) of the item. In laymen terms it refers to the fact that if a shipper sends out their products on a Class 50 to get a cheap rate (less than the class of cheaper rates), but they need release a high amount ($ 10,000) and then they must raise their Class in their coincide Released Value (RVNX). Sa freight shipper claims a "can not have their cake and eat it ..." In other words you can not show a lower class in your bill of lading, and then use a high amount released in case of damage occurs
FAK TARRIFF provisions:
This is where the limits of liability is based on class, it is based on classes where the shipment is charged, NOT the actual class, so when a customer ships in a class 100 and class enjoys a 50 FAK limitation of liability is based on class 50 class NOT true. The Carrier did not pay the actual class but the limits of liability to class 50th.
Concealed damage Claims:
Concealed damage must be reported to carrier within 15 days of delivery will vary depending on the Carrier. Carriers generally deny concealed damage claims or settle for 1 / 3 of the claimed amount. You must be able to prove negligence so Carrier information may be required when the filing of a concealed damage claim. Photos, a complete description of the damage, packing list, how the shipment is packaged and any additional information that would prove negligence Carrier. Freight charges can not be undone to keep damage claims. Another important tip here is when you as a shipper sends cargo to your customers and damage occurs in transit, it is essential that your customers notate it on the carrier bill of lading. Note also the driver does not have to wait for the inspection of cargo. The consignee must check out of crates, package, pallet etc. for dents and signs of mishandling.
