Freight Damage Claims SOP Template

1.Purpose

To recover the value of freight lost or damaged in transit by filing accurate, well-documented claims with carriers or insurers and tracking them to resolution.

2.Scope

Applies to claims for freight damaged or lost while in the custody of a carrier, from initial discovery through claim settlement. Warehouse-internal damaged goods handling is covered by a separate SOP.

Definitions

Concealed damage

Damage to freight that is not visible until the packaging is opened after delivery, as opposed to visible damage noted at receipt.

Claim filing deadline

The time limit set by the carrier's terms or contract of carriage within which a formal claim must be filed.

Bill of lading exception

A written note on the bill of lading at delivery describing visible damage or a shortage.

Subrogation

The process by which an insurer that pays a claim takes on the right to recover the loss from the responsible carrier.

3.Responsibilities

Receiving Clerk

Notes visible damage on the bill of lading and reports it immediately at delivery.

Logistics Claims Coordinator

Documents damage, files claims with carriers, and tracks them through resolution.

Logistics Operations Manager

Reviews high-value claims, approves write-offs, and manages the carrier relationship on disputed claims.

Finance Analyst

Records the claim receivable, reconciles settlement payments, and reports unrecovered losses.

RACI matrix

R = Responsible, A = Accountable, C = Consulted, I = Informed

4.Materials and PPE

Materials, tools and systems

• →Claim filing form (carrier or standard form)
• →Bill of lading with any noted exceptions
• →Photos of damaged freight and packaging
• →Original invoice or value documentation
• →Claims tracking log or TMS claims module
• →Carrier contract or tariff terms

5.Procedure

1. 5.1

   Note visible damage at delivery

   Receiving Clerk

   If damage is visible when freight arrives, write a specific description of it directly on the bill of lading before signing, and have the driver initial the exception.

   Checkpoint: Visible damage is described in writing on the bill of lading and initialed by the driver before it is signed.

2. 5.2

   Photograph the damage immediately

   Receiving Clerk

   Photograph the damaged freight, its packaging and any shipping labels before it is moved or unpacked further, capturing multiple angles.

3. 5.3

   Report concealed damage promptly

   Receiving Clerk

   If damage is discovered only after unpacking, report it to the claims coordinator the same day it is found and preserve the original packaging and all packing materials.

   Warning: Do not discard packaging or dunnage from a shipment with concealed damage; carriers often require it to support the claim.

4. 5.4

   Gather claim documentation

   Logistics Claims Coordinator

   Collect the bill of lading, delivery receipt, photos, original invoice or value documentation, and the purchase order for the affected freight.

5. 5.5

   Check the claim filing deadline

   Logistics Claims Coordinator

   Confirm the filing deadline in the carrier's contract or tariff terms and calendar the claim to be filed well before that date.

6. 5.6

   Complete and submit the claim

   Logistics Claims Coordinator

   Complete the claim form with a description of the damage or loss, the claimed amount, and attach all supporting documentation, then submit it to the carrier or insurer.

7. 5.7

   Log the claim in the tracking system

   Logistics Claims Coordinator

   Record the claim number, filing date, carrier, claimed amount and expected response date in the claims tracking log.

8. 5.8

   Follow up on outstanding claims

   Logistics Claims Coordinator

   Follow up with the carrier on any claim without a response by the expected date, and update the tracking log with the latest status.

   Checkpoint: Every open claim past its expected response date is followed up on within the same week.

9. 5.9

   Review a denied or partial offer

   Logistics Claims Coordinator

   If the carrier denies the claim or offers a partial settlement, review their stated reason against the documentation and decide whether to accept, negotiate, or escalate.

10. 5.10

    Escalate a disputed high-value claim

    Logistics Operations Manager

    For a high-value or repeatedly denied claim, escalate to the logistics operations manager to decide on further negotiation, formal dispute or accepting the loss.

11. 5.11

    Record the settlement

    Finance Analyst

    Once a claim is settled, record the settlement amount and date, and pass the details to finance to reconcile against the original claimed loss.

12. 5.12

    Review claim trends by carrier

    Logistics Operations Manager

    Summarize claim frequency, value and resolution outcomes by carrier on a regular schedule to inform carrier selection and contract negotiations.

6.Quality checks

• →Visible damage is always noted in writing on the bill of lading before signing.
• →Every claim is filed with complete documentation before the carrier's filing deadline.
• →Claims without a carrier response are followed up on the same week they become overdue.
• →Settlement amounts are reconciled against the original claimed value by finance.

7.Records

• →Bills of lading with noted exceptions
• →Claim forms and supporting photos
• →Claims tracking log
• →Settlement and write-off records

8.KPIs

• →Percentage of claims filed before the deadline
• →Average claim resolution time
• →Claim recovery rate (settled amount versus claimed amount)
• →Claim frequency by carrier

9.Common mistakes

• →Signing a delivery receipt clean when damage was actually visible.
• →Discarding packaging from a concealed damage shipment before it is inspected.
• →Missing the carrier's claim filing deadline due to slow documentation gathering.
• →Not following up on a claim until months after it was filed.

10.Revision history