As if shipping LTL isn’t complicated enough, things can get even more complicated in the event of a claim! Figuring out exactly what you’re entitled to from the carrier can be tricky, but we have extensive knowledge of these processes and can provide you with the resources you need when you’re dealing with a claim.
Did you know that when you ship LTL, the type of quote you get and your product’s freight class will determine the amount of monetary reimbursement on your damaged or lost cargo? Every LTL carrier has a published, customized set of tariffs that state their maximum liability in the event of cargo loss or damage. These tariffs also state what accessorial and special charges the carrier will and will not be responsible for and the amount you will be charged for each particular service in the event they occur (such as liftgate, white glove, or redelivery). It is also important to remember that concealed loss or damage that was not noted at the time of delivery be reported within five (5) calendar days from the date of delivery and all merchandise should be kept in the original packaging, in the same condition as when the loss was first discovered.
At the time of “booking” or “quoting”, the carrier will class the items being shipped in accordance with their NMFC number. The class the items are shipped under will determine the freight rate and your return on loss or damage. There are also certain types of quotes that can initially dictate the carrier’s maximum liability in the event of loss or damage: volume, spot and truckload quotes. In the event you are quoted by one of these methods, your return for loss or damage will be covered at $1.00 per pound, regardless of the stated maximum liability for that class.
Adding to the complication of LTL is the liability limitations imposed on used commodities by LTL carriers. It is very important to familiarize yourself with these limitations as most LTL carriers limit their liability to $.10/lb on used commodities Used commodities are defined as refurbished, remanufactured, or other than new. LTL carriers usually state in their rules tariffs that the released value must be entered on the Bill of Lading in the following form: “The released value of the property is hereby specifically stated by the shipper not to be exceeding 10 cents per pound.” If the shipper fails or declines to execute above statement or designates a value exceeding 10 cents per pound, such shipment will not be accepted for transportation. If such a shipment is inadvertently accepted, the carrier’s liability will not exceed 10 cents per pound for that part of a shipment lost or damaged. Shipping your used or refurbished goods via LTL greatly reduces carrier liability, so it very important you are aware of the risk that goes along with it.
Remember, after a formal claim has been filed and before any claim funds are paid out by the carrier, they will perform an investigation to establish liability for the loss or damage. If you are a party in charge of packaging or shipping merchandise, you are responsible for making sure the product is labeled correctly and packaged in accordance with the NMFC packaging requirements for that particular item. Otherwise, the carrier may rightfully decline your claim due to insufficient packaging.
If you are a party involved in shipping or brokering LTL freight, it is a very good idea to familiarize yourself with the tariffs of each of the LTL carriers you will be utilizing, as all of them carry different amounts of liability and vary in the amounts they charge for their accessorial or special services. All LTL carriers’ tariffs are public information that is available on their websites or upon request.
If you have any questions regarding limitations of liability, claims, or what to do in the case of OSD’s (overages, shortages and damages) feel free to contact the claims department at [email protected] or give us a call at 904-394-4678.
Click here to open the R2 Claims Guidelines.