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WORKFLOW - LOGISTICS

Freight Claims Workflow

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Quick Answer

The Freight Claims Workflow uses AI to process damage and loss claims by evaluating carrier liability, documenting damages, calculating claim values, and managing claims through resolution. AI analyzes bill of lading terms, carrier inspection reports, and damage documentation to determine valid claims.

Definition

**Freight Claims Workflow** automates the processing of cargo damage and loss claims against carriers. AI evaluates liability, documents evidence, calculates claim value, submits claims, and tracks resolution—reducing claims cycle time and improving recovery rates.

Key Points

  • Evaluates carrier liability based on bill of lading and contract terms
  • Documents damage with photos, inspection reports, and evidence
  • Calculates claim value: product cost, freight charges, salvage value
  • Validates claim within carrier filing deadlines (typically 9 months)
  • Generates complete claims package with supporting documentation
  • Tracks claims status and escalates delayed claims
  • Identifies patterns for carrier performance evaluation
  • Improves claims recovery rate by 25-30%

How It Works

1

Claim Initiation

Receive damage/loss report from customer or delivery team. Document: shipment details, BOL number, claim type (damage/loss/shortage).

2

Evidence Collection

Gather evidence: photos of damage, packaging condition, delivery receipt notes, weight/count discrepancies, inspection reports.

3

Liability Determination

Evaluate carrier liability: review BOL terms, delivery confirmation, carrier inspection, packaging adequacy, concealed vs. visible damage.

4

Claim Valuation

Calculate claim value: invoice cost of goods, freight charges (if applicable), salvage value. Determine depreciation if used goods.

5

Documentation Package

Compile claims package: claim form, BOL copy, invoice, photos, inspection report, delivery receipt, proof of value.

6

Deadline Validation

Verify claim filed within carrier deadlines: typically inspection within 15 days, claim filing within 9 months. Flag expired claims.

7

Claim Submission

Submit claim to carrier via portal or email. Track submission confirmation and assigned claim number.

8

Resolution Tracking

Monitor claim status. Escalate if no response within carrier SLA (typically 30-60 days). Negotiate settlement if partial offer.

Carrier Liability Scenarios

  • Visible Damage at DeliveryCarrier liable if damage noted on delivery receipt. Strong claim if properly packaged and documented at receipt.
  • Concealed DamageCarrier may be liable if damage discovered within inspection period (typically 5-15 days) and claim filed promptly.
  • Missing/Lost FreightCarrier liable if cannot provide proof of delivery. Must exhaust carrier trace procedures before filing loss claim.
  • ShortageCarrier liable if delivered count/weight less than BOL. Requires scale tickets or count verification at delivery.
  • Packaging FailureCarrier NOT liable if damage due to inadequate packaging. Shipper responsibility to package appropriately for transit.