How to File a Freight Claim and the Legal Rules That Apply

How to File a Freight Claim and the Legal Rules That Apply

Learning how to correctly file a freight claim is important because it can save time and money for your company. A freight claim is a legal demand for the payment of money, stemming from the breach of a contract of carriage. Following strict guidelines and processes is the only way to correctly deal with these claims. Most importantly, there are four crucial elements to filing a freight claim:

  1. The shipment needs to be identified so the carrier can complete an investigation.
  2. The type of loss or damage must be stated.
  3. The amount for the claim must be estimated.
  4. A demand for payment by the carrier must be included.

After making sure all four elements are clearly indicated, follow these tips and suggestions to ensure you correctly file your next freight claim:

  • Take immediate action
    • Taking immediate action is a crucial step of effectively filing a freight claim.  Freight claims for loss or damage are generally governed by Title 49, CFR. Claimants must file the claim within the time limits specified in the bill of lading or contract of carriage. The time period cannot be more than 9 months from date of delivery or, if never delivered, the expected delivery date. Unless it’s otherwise agreed upon in a contract, a carrier must acknowledge receiving the claim within 30 days. The carrier must then pay, offer to compromise, or disallow the claim within 120 days or provide status reports every 60 days after. If the carrier fails to abide by these rules, it should be notified that it is violating the FMCSA claim regulations.  Furthermore, if the damages are not noted on the delivery receipt at the time of delivery, you have only 5 days to alert the carrier of concealed damage.  After these 5 days, the carrier can deny the claim due to the shipment being signed as clear.
  • Attempt to mitigate the damages
    • A responsibility that all parties of the shipping process share is attempting to mitigate damages. It is your responsibility to give a good faith effort to salvage damaged products unless you consider them to be totally or substantially useless and of no good.
  • Have additional documentation available
    • In order to make sure your freight claim is successful, always include supporting documentation. If it’s available, you should include the original bill of lading (BOL), the paid freight bill, inspection reports, notification of loss, copies of request for inspection, invoices, waivers, and other appropriate documents. Recently, some carriers have adopted picture policies, which require photographic documentation of all damages or else they will not process that claim. The more information you have regarding the freight, the more effective your claim will be.
  • Create a detailed description of the losses or damages
    • A detailed description of the loss or damage should be properly documented.  The claimant should include the number of items damaged, the type of damage, the value of each unit, and the total claim amount.  For example:
      • 15 boxes of cell phones – (water damaged) @ $500 each: $7,500
      • 5 boxes of cell phone cases – (crushed) @ $100 each: $500
      • Total Damages: $8,000
      • Amount Salvaged: $250
      • Total Claim Amount: $7,750

If you frequently ship LTL freight or truckload shipments, freight losses and damages are almost inevitable, as is dealing with freight claims. That’s why it’s important to have an experienced and caring freight management partner working with you every step of the way. When you work with Logistics Plus, we’ll gladly assist you with the filing or processing of your freight claims, and we’ll assist you to find the carriers that best represent your interests. Contact us today to learn more.

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Warehousing and Fulfillment Alternatives to FBA

Warehousing and Fulfillment Alternatives to FBA

WarehousingCompanies that sell through Amazon must contemplate whether it makes sense to use Fulfillment By Amazon (FBA) services or consider third-party warehousing alternatives to FBA. When making this important business decision, it is crucial that companies understand the benefits of third-party logistics (3PL) while recognizing some of the potential downfalls associated with FBA. Here are a few issues that Amazon retailers face, and ways that 3PL companies such as Logistics Plus can help:

  • Issue: Costly warehousing and fulfillment options where the prices can change monthly
  • Cause: Due to the decreasing space at Amazon fulfillment and warehousing centers, the costs continue to increase and fluctuate by month. Between the months of January-September and October-December, Amazon retailers can expect about a 245% increase in monthly storage prices.
    • Logistics Plus Solution: By offering complementary, but lower-priced FBA-related services, Logistics Plus can provide more flexibility with packaging and warehousing, along with predictable and stable pricing all year long (see examples below). We can also help address sellers needs for omnichannel fulfillment strategies.
  • IssueSupply chain visibility and unknown locations of products.
  • Cause: Due to the high volume of products and limited capacities of FBA warehouses, products may become lost or damaged, leaving the customer wondering where their product is located or being held. When Amazon struggles to offer this valuable information to their customers, this can often lead to a frustrating experience.
    • Logistics Plus Solution: Logistics Plus is able to track and locate products much easier because it is much smaller and more nimble than Amazon; and Logistics Plus warehouse management system (WMS) technology provides customers with complete, real-time status of products entering or leaving one of its warehouses (we support both LIFO and FIFO inventory systems).
  • IssueCustomer service communication and cooperation.
  • Cause: Due to the amount of retailers selling on Amazon, the customer service responses can often be delayed. Buyers and sellers tend to have multiple questions to make sure they know exactly what Amazon is doing with their orders.  Working through these questions, a retailer can often expect a significant amount of time on hold, often without final resolution.
    • Logistics Plus SolutionBy employing an efficient and cooperative call center solution, Logistics Plus will tend to every customer’s needs. Whether it is a quote on your next import or a simple question regarding the status of your inventory, Logistics Plus will provides answers quickly.

If you’re a retailer that sells on Amazon and you’re contemplating third-party warehousing alternatives to FBA, then contact Logistics Plus. As an endorsed member of the Amazon Global Selling Solutions Provider Network, we know Amazon and we know Amazon sellers well.

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Adam Mook Featured on WPSE Radio Business Spotlight

Adam Mook Featured on WPSE Radio Business Spotlight

Adam Mook Compliance Department ManagerIn case you missed it, Adam Mook, global trade compliance department manager for Logistics Plus, was featured on today’s airing of Business Spotlight on WPSE AM 1450/FM 107.1 Radio. Business Spotlight is a 30-minute program airing Fridays at noon. Each segment focuses on a business or organization that is making an impact across the region.

In this segment, Adam discusses the global trade agreements, recent Trump administration tariffs, customs broker solutions, and more. You can listen to a replay of the interview on the Logistics Plus YouTube Channel below.

What is Project Cargo and How is it Transported?

What is Project Cargo and How is it Transported?

What is Project Cargo?
What is Project Cargo and How is it Transported?Project cargo, also known as project forwarding or project logistics, is the transportation of large, complex, or high-value pieces of equipment, including break bulk shipments, that can move by land, sea, or air. This process involves single or multiple shipments with the help of cranes, trucks, rail, planes, and ships.  Furthermore, project cargo tends to have a specific time-frame or specified delivery date that makes these shipments some of the most complex and detailed projects in the entire logistics industry.

Getting Started:

Pre-planning is crucial
Every successful cargo project begins with an organized and detailed plan. Making adequate time to organize and plan every detail of this process can save shippers a significant amount of time and money, while also reducing the risk of unexpected events.

Work on a contingency plan
There is always a chance that unpredictable or unanticipated events can impact the pre-planned strategy. It’s important to consider every alternative and have a backup plan if something goes wrong. Making sure you have an appropriate contingency plan in place can help ensure success with all deliveries.

Execution
Once all plans are in place, it’s time to begin transporting the product. Every country has different protocols when it comes to customs compliance, paper work, duties, exemptions, authorizations, and other considerations that must be followed. Typically, an experienced project cargo manager can assist firms with all the regulatory considerations and budgeting process, as well as providing insights into the shipment design, packaging, routing options, and appropriate choices for final delivery. The execution of project cargo transportation should be just as comprehensive as the pre-planning stage. Based on transit times and other factors, a project cargo manager will meticulously execute the detailed plans while maintaining liability, constant communication, and overall transparency.

Work on constant improvement
Project cargo transportation always has room for improvement. Tracking and analyzing the results of finished projects will lead to further improvements on future shipments.

Why choose Logistics Plus for project cargo and break bulk shipments?
1) We have over 20 years of project cargo expertise
2) Award-winning service and market competitive rates
3) Our global network of people, locations, and resources
4) Cargo visibility and responsiveness to potential problems
5) World-class technology and transportation management tools

If you’re interested in our award-winning service, click below to receive a free project cargo quote today or email us at projectcargo@logisticsplus.com.

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