A denied freight claim is never a done deal. Carriers often deny claims as a first point of action to avoid a payout and cut an otherwise arduous process short. When every denied freight claim requires persistent follow-up, multiple rounds of negotiation are required to reach a settlement.
Most shippers don’t have the time or manpower to follow up on submitted claims, so money often gets left on the table. Claims can be denied for various creative reasons such as waiting for an inspection, noting pieces not signed for by the driver, improper packaging, concealed damage, or a clean POD. The reasons are endless.
A third-party logistics (3PL) provider can help shippers avoid hefty losses while streamlining their cargo claims process and improving claim resolution rates. From legal and regulatory support to documentation and data collection, 3PLs help shippers of all sizes close time and resource gaps while adding dollars to their bottom line.
Get end-to-end freight claims management support
A 3PL can handle the entire claims process on behalf of a shipper—including claim documentation, submissions to the carrier or insurance company, and follow-up until resolution. Small and medium-sized firms may lack the time and resources to hire and train in-house personnel to work exclusively on claims management.
Not only can 3PLs handle all the required heavy lifting, they have extensive and specialized experience navigating various cargo claim scenarios. They know exactly which documents and evidence they need to submit to support a claim, including bills of lading, inspection reports, photographs, and other pertinent information that can strengthen the case for compensation.
Leverage expert knowledge to maximize compensation
When handling a claim, 3PL providers assess the full extent of the loss or damage, including any indirect costs or business disruptions. They’ll ensure that all eligible expenses are included in the settlement and develop a tailored negotiation strategy to maximize compensation.
In addition to collecting and submitting the right documents, 3PLs employ staff with deep industry knowledge and expert negotiation skills to ensure they’re presenting a compelling case for every claim. For insurance, 3PL providers can leverage their deep understanding of policies and coverage limits to identify all applicable coverage areas and maximize claim value.
Minimize the number of denied freight claims and their impact on operations
Beyond negotiating denied freight claims, a good 3PL provider will work with shippers to ensure they don’t happen in the first place. 3PLs often collect and analyze claims data to identify patterns, root causes, and improvement areas. Shippers can then leverage this data to proactively reduce future claims, mitigate risks, and optimize their operations.
More importantly, 3PLs will provide their partners with valuable guidance on risk mitigation strategies, such as selecting more reliable carriers, implementing proper packaging and handling procedures, and ensuring adequate insurance coverage. When shippers have a solid understanding of their contracts, adhere to best practices, and communicate effectively with carriers, they decrease the likelihood of claims events—and when they do occur, they increase their chances of compensation.
Let CTSI-Global do the heavy lifting on freight claims
CTSI-Global’s freight management solution is an automated process that provides the tools to quickly navigate the multitude of documents required for a claim such as the BOL, delivery receipts, commercial invoices, and pictures. It includes a document center that provides the ability to view all communication between CTSI-Global, the carrier, and shipppers. Robust reporting allows customers to drill into problem carriers or items that need additional blocking and bracing at the time of loading.
Logistics management experts handle every aspect of the claim process, sharing best practices to mitigate claims within their supply chain. CTSI-Global’s 3PL solution allows customers to focus on what matters most. With smarter processes, organizations will see fewer claims, stronger supply chains, and increased bottom lines.
Contact CTSI-Global and get the Tier 1 expert support your firm needs to handle freight claims and every other step of your logistics journey.
