Freight Claims

A Shippers Guide to Freight Claims.

Basics of Freight Claims

Freight claims is a stressful part of the freight shipping. Learning the basics of freight claims helps shippers mitigate and learn how to handle claims - should they arise.


Every freight shipment is covered by limited liability, meaning the carrier is responsible for loss and damage under the Carmack Amendment. The amount of coverage is a set dollar amount per pound of freight determined by the carrier and based on the commodity.

Reasons for a Claim:

Physical Damage

Lost in Transit

Water Damage

Claim Expertise Matters:

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$1,226,323.65

TLI recouped $1,226,323.65 in claim reimbursements in 2024.

Our logistics experts help mitigate claims and claim experts help ensure the right process to recoup losses in damaged/lost freight.

At-Time of Delivery

freight claims

Inspect the Delivery Carefully

Inspect the delivery carefully for any damages. If you see noticeable damages, make sure to notate and take pictures of the damaged freight.


If you find damage after the delivery (concealed damage), ensure to contact TLI right away to make claim. Concealed damages must be filed within 5 days of delivery.

freight claims service

Notate Damage Immediately

The consignee must notate the damages in detail at the time of receiving. Signing a proof of delivery without a damage notation is marking the shipment as cleared and lowers the settlement payout.


It's also important to notate damage, without placing blame on the notation. An example is writing "3 inch tear in carton" instead of "3 inch tear in carton due to improper packaging".

freight claims management

Take Pictures of Damaged Freight

Capturing visual evidence of damaged or improperly handled shipments serves as undeniable documentation that can greatly aid in the claims resolution process. These images provide concrete proof of the condition of the goods at the time of shipment, reducing the likelihood of disputes and expediting the claims procedure. By ensuring transparency and accountability, these photographs not only strengthen the shipper's case but also foster better communication and collaboration with carriers, insurers, and other stakeholders involved.

freight claims process for damaged freight

Keep the Product

Never discard the product until the claim has been resolved. The carrier has the right to inspect the damaged product. They also have the right to take ownership of and salvage the product if a claim is paid in full. Getting rid of the damaged product may result in the claim not getting paid in full or denied altogether.



WARNING: Hazmat Products have special requirements that vary by product. Please contact TLI's Claim Department for next steps when it comes to Hazardous Material.

Claim Reimbursement

Carrier's are not always legally obligated to pay out freight damages. There are limitations to how much compenssation is reimbursed and when the carrier is liable for damages.

Carriers are Liable When:

  • Loss is a direct result of Carrier Negligence
  • There is proof of Carrier Negligence
  • Only up to a certain Dollar Amount

More than half of claims are denied entirely because of lack of proof or not properly notating damages at time of delivery.

Less-than-Truckload (LTL) Carriers are only liable up to the limited-liability coverage in specific contracts. While contracts vary, a good rule-of-thumb is displayed in the Standard Industry Coverage section. Due to the nature of LTL networks and how freight is handled, there are higher chances of claims in this type of shipping.

Standard Industry Coverage

Mode Standard Coverage
Less-than-Truckload (LTL) $5.00 Per Pound
Volume $0.50 Per Pound
Full Truckload (FTL) Maximum $100,000
Domestic Air $0.50 Per Pound
Carriers $500 Per Container

*Actual Coverage Varies by Carrier

Need reliable insurance coverage? TLI is able to purchase additional all-risk insurance coverage for your high-value shipments. All-Risk insurance can help shippers get reimbursed, regardless of carrier negligence.

Quote a shipment with Additional Insurance>

Common Scenarios in Claims

  • My Shipment is Partially Damaged and/or Shipment has a Shortage

    Note on the delivery receipt that there is damage to X amount of Cartons, Bottles, etc. or Short X amount of Cases. Make sure to take pictures as well to document the damage/shortage.


    On partially damaged shipments, as a general rule, the consignee should not reject the shipment, but receive it documenting the damage. TLI should be contacted to provide further direction and to file a claim. Depending on the nature of the damage, it may be possible to repackage the item, or sell it for salvage. 


    The damaged product will need to be available for inspection should the carrier deem this necessary.


  • A Leaking Pallet Arrives at my Dock from the Carrier

    The consignee should refuse the leaking portion of the product and indicate in detail the damage on the delivery receipt. If there is other product on the skid, the consignee will have to use their discretion when  receiving it. 


    If there is product on the skid that is usable, (i.e. 1 bottle leaking in a case) it is expected that you will accept the remainder of the product with a notation on the delivery receipt. If the skid is determined to be completely destroyed, the consignee should refuse the shipment.

  • Concealed Damage - Damage is Found after Accepting/Signing

    Take pictures of the shipment and note the time and date on all pictures. 


    When damage is discovered call Translogistics at 610-280-3210 immediately so that the call is documented and an inspection can be scheduled. Do not move the shipment any more than necessary. When an inspector comes, they will ask if the shipment was moved. If it was, there is less chance that the claim will be paid because of possible damage caused when shipment was moved.


    Save all the packaging. If possible, keep it packaged until the inspector seize it. Depending on the marks on the packaging, it can potentially be determined how it was damaged. If you can’t keep it packaged, take pictures prior to unpacking.


    Please note that concealed damages must be reported within 5 business days of delivery.