The shipping papers (the bill of lading) will indicate how the product was originally delivered to the carrier. It will indicate if the freight started on pallets or in cartons. It will also list the type of product, quantities of cartons or pallets, weight and the day it was picked-up at the shipping point.
What is the best way to handle freight damage or shortage?
Freight Damage and Freight Shortage
Metal Form Mfg. LLC/Commercial Acoustics/Energy Saver/Dynsaonics (MFM) products are shipped "F.O.B. Factory" and delivered to the customer (consignee) by a trucking/freight company (carrier).
F.O.B. (Free or Freight on Board) determines the point legal ownership (title) of the product changes from the shipper to the consignee and has nothing to do with who is actually paying for the shipping charges. "F.O.B. Factory" means title changes from MFM to the Consignee when the product is loaded for the first time aboard the carrier’s truck at the factory and therefore should there be any freight damage or loss during transit the Consignee is responsible for filing a freight claim with the carrier. The carriers used by MFM all carry insurance against any loss or damage during transit.
While most shipments are delivered complete and in good condition, occasionally, some shipments are delivered with freight damage or missing items (called a shortage). The only way to determine if there is freight damage or a shortage is to carefully inspect the shipment when it is delivered. This is the consignee's responsibility.
So, if it was originally shipped on pallets and it arrives as loose boxes, obviously something happened in transit and the shipment needs to be carefully inspected. Inspect all deliveries before signing the delivery papers. Check each carton for damage. Once the shipping papers are signed, without noting any damage or shortage, it is very difficult to file a freight claim.
Another possible issue when a shipment arrives is concealed damage. Concealed damage is damage that is not visible when the material is delivered. It is concealed inside a box or not within sight. This type of freight damage is very difficult to prove after the material has been received and signed for the without noting damages.
To prevent a conflict between the freight carrier and the Consignee, have each shipment, each carton, and if necessary each item inspected when delivered. If a cardboard container shows any sign of tears, holes, unusual folds, dents, wrinkles, or sags, open it before signing for the shipment. A few minutes of inspection time can be very beneficial when it comes to filing a claim. After the shipment has been sitting in the Consignee’s possession for any length of time how can a shipper be sure that the concealed damage from them? It can get very costly if concealed damage is found a month after the shipment was received or worse, on the day the material is to be installed. After the fact, how can it be proven that the carrier caused the damage?
The Consignee must file the claim to receive reimbursement from the carrier. We have found that freight claims filed in a timely and complete manner, are resolved timely. If you wish, MFM can assist in completing the claim form.
Whether or not a claim is filed is the Consignee’s decision. Regardless, you must still pay MFM for the materials, even if it is damaged, destroyed or lost. If a claim is filed, the carrier will reimburse for damaged or lost products, replacement products, and in some cases the time to repair the damages. Have the Consignee contact the carrier’s claims department before starting any repair work and be sure to save all damaged material and packaging until inspected by the carrier's claims department.
If the product is damaged beyond repair or lost you may want to reorder. This reorder will be billed to you by MFM. You are expected to pay MFM for the original order and any reorders.
Before Refusing a Shipment Read the Following
The Consignee may refuse a shipment, but have them consider the following eight items before proceeding:
- Remember the material is now owned by the consignee.
- The freight company will store and use reasonable efforts to protect their property.
- As a rule, carriers will not pay freight claims while your freight is in their possession.
- The carrier will notify the shipper that the goods are on hand. Metal Form Mfg. will not take the shipment back because it is owned by the consignee.
- If freight is not claimed by the shipper or consignee it becomes the carrier’s possession.
- The carrier has a lien for its freight charges including storage fees and can sell the goods to pay its lien.
- You will still have to pay Metal Form Mfg. for the materials and shipment.
- It is best for all concerned to have the consignee receive the damaged shipment, indicate the damage(s) on the bill-of-lading before the driver leaves and file a freight damage claim.
Filing a Freight Damage Claim
#1: The delivery receipt must be signed as damaged when delivered.
If the delivery slip is not signed with the damage(s) indicated then the freight damage claim will most likely be denied.
Things to remember when signing for damages:
- Note all damage on the delivery slip.
- Make a copy or photo of the delivery slip with notations.
- Take photos of the damage and packaging.
- Save copies of all paperwork and photos related the shipment and damaged materials.
- Ask the driver for the claims department phone number.
- If the driver refused to let the Consignee sign or check for damage, instruct them not sign the delivery slip, refuse the shipment and contact the carrier or Metal Form Mfg., 602-233-1211 ext. 202.
#2: Notify carrier immediately of the damage:
Contact the carrier immediately and request a freight damage claim form and ask that a claim adjuster inspect the damage. Do not proceed with repairs to the damage without written authorization of the carrier. Do not destroy the freight or packaging until the claim is resolved.
#3: Save the damaged freight and packaging:
The freight needs to be available to the carrier for inspection or salvage pickup. This means the freight needs to be stored until the freight claim is resolved. Do not destroy the freight or packaging until the claim is resolved.
#4: File a freight damage claim:
The consignee must file the freight claim. Metal Form cannot file the claim however we will assist with any questions. Items to include in your claim are:
- Completed freight claim form
- Product invoice from you (Metal Form Mfg. if you are filing the claim)
- Original Bill of Lading
- Repair cost invoice (if applicable)
- Photos of damage and packaging
- Claim Adjusters inspection report
- Description of damage
Filing a Concealed Freight Damage Claim
#1: Was the shipment inspected when delivered?
The freight carriers are very reluctant to approve concealed freight damage claims. They will say the freight was signed as undamaged when it was delivered. Can it be proven that the damage occurred during transit? If so, proceed to #2.
#2: Notify carrier immediately of the Concealed damage:
Contact the carrier immediately and request a freight damage claim form and ask that a claim adjuster inspect the damage. Do not proceed with repairs to the damage without the written authorization of the carrier. Do not destroy the freight or packaging until the claim is resolved.
#3: Save the damaged freight and packaging:
The freight needs to be available to the carrier for inspection or salvage pickup. This means the freight needs to be stored until the freight claim is resolved. Do not destroy the freight or packaging until the claim is resolved.
#4: File a freight damage claim:
The consignee must file the freight claim. Metal Form Mfg. cannot file the claim, however we will assist with any questions. Items to include in your claim are:
- Completed freight claim form
- Product invoice from you (Metal Form Mfg. if you are filing the claim)
- Original Bill of Lading
- Repair cost invoice (if applicable)
- Photos of damage and packaging
- Carrier inspection report
- Description of damage
Filing a Freight Shortage Claim
#1: You must sign the delivery receipt as a short shipment!
If the delivery slip is not signed as being short the freight claim will most likely be denied.
Things to remember when signing for shortage:
- Note what is missing on the delivery slip.
- Make a copy or photo of the delivery slip with notations.
- Save copies of all paperwork and photos related the shipment and damaged materials.
- Ask the driver for the claims department phone number.
- If the driver refused to let you sign or check for damage do not sign the delivery slip, refuse the shipment and contact the carrier or Metal Form Mfg., 602-233-1211 ext. 202.
#2: Notify the carrier immediately of the shortage:
Contact the carrier immediately and request a freight claim form.
#3: File the freight shortage claim:
The consignee must file the freight claim. Metal Form Mfg. cannot file the claim however we will assist with any questions. Items to include in your claim are:
- Completed freight claim form
- Product invoice from you (Metal Form Mfg. if you are filing the claim)
- Original Bill of Lading
- Description of shortage
NOTE: The images shown are for illustration purposes only and are not intended to depict actual product packaging and/or mode of transportation.