We can all remember a claim or two from our (hopefully not too recent) past that went awry. Not just the run-of-the-mill overage, shortage, or damage, but the freight claims that drive your decision-making for years to come.

This got us thinking about how to put a price on the anguish that can come with claims of any type, but especially the doozies. Aside from the value of a claim vs. that which is (or isn’t) recouped through insurance, salvage, or direct compensation. What does a freight claim really cost?

We’ve discussed the topic with customers across the globe and reviewed the literature to come up with a very brief summary of the most common factors we’ve heard companies express they’d like to assess.

Time

The average claim, depending on volumes, scale, and region, takes 2 to 6 hours to file - but can take so much longer. There’s also the handling and storage of the product while decisions are made, and discussions and time spent getting to the bottom of the issue - and ultimately assessing fault.

Even if you do everything correctly, there can still be lasting and sometimes indirect consequences.

Decreased contracts, reduced capacity in challenging markets, additional competition, and new burdens in getting business done can all come later and with notice. 

It shouldn’t happen, but it can and does. Cargo claims are a part of all supply chains, but also a factor in partnership success.

This is the wildcard.

What should you or your team actually be doing when you are stuck working on claims? Getting business, filling orders, or market outreach? Take your pick, they’re better than figuring out who put that big dent in your bottom line. 

Prevention, of course, is the optimal remedy, whether performing inbound and outbound logistics inspections or assessing historical data on claims from the past.

Want to get rid of cargo damage?