Let's be honest, you can't control everything.
Sometimes, when cargo arrives at a consolidation facility or its final destination, it is damaged or broken. The receiver calls you to tell you the product is a mess. The customer may refuse the cargo. You need to act fast, but you don't know where to start.
Claims -and the efforts related to them- can be overwhelming and full of stress.
Relax; I've got you covered!
I have gathered a few simple steps as recommendations to guide you in the claim process, to help you manage it with security and assertiveness.
If cargo arrived with damages, the product is exposed or it is broken:
1. First things first; please do the following
Take pictures of the cargo upon receipt, inside of the container. Avoid touching or unloading the cargo until you have instructions from the cargo owner.
Notify the cargo owner as soon as possible and share pictures showing all damages. Please note there may be concealed damages, which are not visible when receiving the cargo.
Hold the driver at the location until the cargo owner is fully aware of the situation and has confirmed what to do with the cargo. Write the final decision on the bill of lading with your signature and the driver's signature too.
Notify the party involved at the moment of receipt. If you are receiving the cargo from a contracted driver, contact dispatch or the 3PL provider. If the driver is contracted by the shipper, contact the vendor immediately.
2. Identify the type of cargo
Fresh or Frozen - you should consider collecting the temperature history. There are temperature monitoring devices that some shippers include in the container when they are loading the cargo. Another way to collect this information is by requesting the temperature history to the container owner. This will help you -and your customer- support any further decision.
Dry Commodities - if cargo is meant for human consumption or it is a raw material for medical components, you will need to handle the situation with extreme care and with the guidelines provided by the FDA. Other types of cargo are construction materials (like tiles or stone), furniture, household goods, and electric appliances, which can have internal (concealed) damages and the receiver may not able to identify them upon receipt.
3. Confirm how to proceed
Receive under protest or Receive subject to inspection at the final destination - both are very common when receiving produce or boxes with minimal damages. Proceed to add a note on the bill of lading with the specifications and findings. Add the receiver's and the driver's signature.
Receive what is good and reject the damaged portion- this can happen when some cases are crushed or broken, or when visible damages are evident in some of the cargo.
Reject all the cargo - this may be the response to leaking products, exposed cargo meant for human consumption, or significant temperature discrepancies, among others. Add a note on the bill of lading, specify the situation, list the findings, and -if the rejection is related to temperature- consider requesting the temperature history to the carrier to support your decision.
Document the loss - if cargo can't be salvaged, a proof of disposal will be needed. For electric or technical products, a quality assessment report will be required. Other documents are also used to validate a loss of profit.
4. Submitting the claim
Identify the link in the supply chain that failed to handle the cargo properly. Collect all the documents needed. Proceed to formally submit the claim.
Prepare the statement of claim - Include the items, description of damage, and explanation of the claim.
Search for the following cargo documents: Commercial Invoice (CI); Cargo Bill of Lading (BOL); Proof of Delivery (POD). Other documents may be needed depending on the cargo, the supply chain process that was taking place, and the supplier's requirements to file a claim.
Search for supporting documents, like temperature history, origin seal #, any email communications, and pictures showing the damage.
If the cargo was meant for human consumption or required a temperature-controlled environment, you may want to consider the voice of an expert. You can contract a surveyor to provide their opinion on the matter and further recommendations.
Submit all documents.
Follow up as needed, until the claim is paid.
5. For future loads, work proactively. Don't wait to have a claim to prepare.
Make sure you are collecting the following documents as soon as the load is created.
Order
Commercial Invoice (CI)
Photos of the cargo (in good state)
Packing List (PL)
Cargo Bill of Lading (BOL)
Ocean Bill of Lading or Airway Bill (AWB)
Trucker's Interchange Receipt (TIR)
Proof of Delivery (POD)
Other documentation may be needed - receive all documents related, code them, save, and repeat.
You can create a digital file and include the load reference# or ID# to the file name (Load-123456) and each document (BOL-123456 - for example). Create your combination and use it with all your shipments. This number will help you to easily locate all related documents when searching for the computer.
Document each load properly. It will help you address the claim process fast.
If cargo arrives at its final destination and there is no damage notification, you can keep the documents for future reference.
If you would like to know more about freight claim processes or need to assess a freight claim now and need further assistance, please feel free to contact me. Send me an email with more details: MyLogisticsLab@gmail.com.
About the Author: My name is Gloria Isamar Rivera. I have more than 17 years of combined experience in business administration, marketing, customer service, supply chain, logistics, and 3PLs. I consider myself a young professional, a supply chain leader, and an out-of-the-box strategist. I enjoy the simple things in life and value every process as a learning experience. Looking forward to sharing something interesting for you very soon! Thank you for reading! ;-)
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