Cargo Claims - Pay To Ship Back?

[AccountsReceivable@DRC]

I've got a question for those who handle cargo claims....

If you deliver freight and the customer calls/emails you stating "damages" at the consignee - and asks you to go back - pick it up and return to the shipper....who is paying for that?

In most cases - I don't even have the POD back yet from our delivering branch. I have no idea what the freight is - how the damage happened - if it was concealed etc. It is not even at the "claim stage" yet nor have I received an "intent to claim". But the customer is emailing dispatch - on the notion that this is in fact a claim - and wants the freight returned to the shipper right away.

The customer is assuming we will cover the return charges...on our dime. And this - to me - isn't right. I expect the customer to send in a proper confirmation - with an agreed rate - and proceed from there. If in fact the incident turns into a cargo claim - then at that stage - add in any incurred charges. Review it at that point...

Seems to me too many "freebees" are being expected of the carrier - when the entire claim process is being pushed to the wayside....

Would appreciate your thoughts/2 cents from those who have experience in cargo claims.

 

[loaders]

Until the "owner of the goods" files an intent to claim with any supporting documentation, there is no claim. Once that is done however, the return or the disposal of the damaged goods becomes part of the claim and either yours or the insurance company's responsibility. A claim isn't a claim until the shipper/consignee files an intent to claim for damaged freight along with details of the damage.

 

[bubba-one]

I agree with loaders, but do consider the value of the claim against what your deductible is, and what might be the easiest way to have it settled. Being pro-active on your part may lessen the total cost.

 

[lowmiler88]

We are on both sides of the fence, these days a POD should be produced almost immediately if the carrier at pickup signed in good order and it was damaged in transit then it is the carriers responsibility. Most receivers should sign if it was a loading or unloading issue or concealed damage, it is very important the drivers follows up at the time of delivery about this (trust me I know all about drivers and it not happening). In our case we usually get the product destroyed at the receiver because we have certain Health Canada rules to follow and must be able to prove where all product ends up (This really ticks off carriers because even if it is claimed and payed they cannot have the product it must be destroyed with a Certificate of Destruction....our hands are tied by this). Any self respecting shipper would pay to have the product returned determine who is at fault and claim accordingly but if the carrier knows it was their fault things sometimes run smoother if you bite the bullet and return it. I don't think there is an answer to this question that will make anyone happy.

 

[Michael Ludwig]

@loaders ... That's not quite correct. Until the owner of the goods, at the time of the loss, actually files a claim, there is no claim. The intent to claim notice, is simply what it states, an intent to make a claim.

@bubba-one ... Taking the easiest way when it comes to cargo claims is not necessarily in your best interest.

@lowmiler88 ... Occasionally we face similar circumstances. We find it best to first consult with our insurance carrier and get their blessing, else they are under no obligation to pay the claim if they cannot obtain control of the goods in question.

Below is something we have found necessary to issue to some receivers ... the ones that think they can run rough-shod over carriers ;

NOTICE TO RECEIVERS
Disposition of Rejected Products
Under the Carmack Amendment, 49 U.S.C. 14706, the consignee as described on the bill of lading is
required by United States Federal Law to accept all goods described on the bill of lading, and tendered
for delivery. Should some, or all, of the goods be in a damaged condition, it is the responsibility of the
consignee to affect salvage of the goods and mitigate the carrier’s exposure to loss.
Motor Carriers, under 49 U.S.C. 14706, have the right to collect additional charges, such as storage,
warehousing, and handling, at reasonable and customary rates, when undelivered product is left in its
care.
Given the above noted points of law, consignees that unload goods from our trailers, then return what
is alleged to be damaged goods to those trailers now take on the role of shipper. This seemingly simple
act causes numerous legal repercussions which Ludwig Transport Limited is no longer prepared to
accept.
Generally the consignee, now shipper by act of reloading goods, is not a customer of Ludwig Transport
Limited, has no credit history with Ludwig Transport Limited, and may not be an entity with which
Ludwig Transport Limited is prepared to complete financial transactions. Furthermore, the consignee,
now shipper, is attempting to complete financial transactions for, and on behalf of, the original shipper
for which it may, or may not, have authority to complete. The consignee, now shipper, is also
attempting to affect the transportation of goods without the benefit of a bill of lading.
To summarize, it is strictly forbidden by consignees to reload delivered goods, regardless of their
alleged condition, unless specifically authorized in writing by management of Ludwig Transport Limited
to do so. Ludwig Transport Limited will no longer be responsible for goods, regardless of their
condition, reloaded onto their trailers without authorization and without benefit of a bill of lading by
consignees, now shippers, attempting to return allegedly deficient goods by skirting United States
Federal Law.
I, ___________________________________, by my signature below, so indicate that I have read, and
(print receiver’s name here)
acknowledge the above notice as written, and will, under penalty of law, abide by its conditions.
__________________________________________ __________________
(receiver’s signature) (date)
for ___________________________________________________________________________
(print name of consignee, city, and state)

 

[lowmiler88]

Michael I like that and my just borrow it if ever needed.

 

[Michael Ludwig]

Please do

 

[AccountsReceivable@DRC]

Appreciate you members taking the time to reply. Some really good points of consideration here - that's exactly what I was looking for....

Thank you

 

[Michael Ludwig]

The one thing I forgot to add ...

If you're hauling it, someone needs to be paying for it!