Handling Claims and Disputes

The blog is officially back in action!

After a bit of a long hiatus, my team and I are thrilled to announce that the Freight Broker Blog is once again back in action, and you can expect new articles on here to come out every Wednesday afternoon. 

Our goal is to provide you with as much value as possible along your freight broker journey, so if you have any questions, or any topics that you would like us to cover on the blog, please feel free to reach out and let us know! But for today, let’s just dive right into the post.

As a freight broker, one of the more crucial aspects of your job is handling freight claims and disputes on the load you are brokering. It should come as no surprise, but dealing with these situations effectively is essential for maintaining positive relationships with both shippers and carriers.

So today, we’ll dive into some key strategies and best practices to help you successfully navigate the intricacies of freight claims and disputes to help you avoid any additional problems or surprises.

To start, let’s first break down what exactly a claim is. A freight claim arises when a shipment is damaged, lost, or arrives significantly late. As the broker, it’s important to understand the different types of claims and their respective procedures.

Typically, there are two types of claims: concealed damage claims, where the damage is discovered after delivery, and visible damage claims, where the damage is evident upon delivery. It’s important to familiarize yourself with the specific requirements of the carriers and shippers you work with to ensure proper handling of each type of claim, but in any case, the following are best practices that you should strive to follow.

1. When handling freight claims and disputes, maintaining detailed and accurate documentation is vital. From the initial agreement with the shipper to the delivery confirmation, ensure that you have a comprehensive record of all relevant information for every single load. This includes bills of lading, inspection reports, photographs of damaged goods, and any communication related to the shipment. By having thorough documentation, you’ll be better equipped to support your position in the event of a dispute.
2. Time is of the essence when it comes to handling any claims and disputes. As soon as you become aware of a claim, promptly notify BOTH the carrier and the shipper. Timely communication demonstrates your commitment to resolving the issue, and it also helps mitigate potential delays in the claims process. It’s also essential to adhere to any deadlines or timeframes specified by the carrier or shipper regarding claim notification and documentation submission, so be sure that you are aware of these deadlines!
3. A collaborative approach is always going to be key to resolving load disputes. Act as a mediator between the shipper and carrier, facilitating open and constructive communication (after all, that is essentially your role and job as a freight broker, right?). Listen to both parties’ perspectives and positions, gather any and all relevant information, and work towards a mutually agreeable solution. If it’s necessary, try to engage in negotiations and find common ground between the two parties to resolve the dispute. Doing so will help in building strong relationships with both the shipper and carrier, and that in turn can really help in finding resolutions and avoiding future conflicts.
4. Take the time to familiarize yourself with the insurance coverage provided by the carrier, as different carriers are going to have different liability limits and coverage options. Ensure that your shippers understand these limits, and consider additional insurance when necessary. Clear communication with both parties regarding insurance coverage can help manage expectations and mitigate potential disputes. In addition, it’s also a good idea to encourage both your shippers and carriers to review their insurance policies regularly and make necessary adjustments to adequately protect their interests.

By following these best practices – documenting everything, acting promptly, collaborating and mediating, and understanding insurance coverage – you’ll be well-equipped to navigate these challenging situations and uphold your reputation as a reliable freight broker.

Remember, things are bound to go wrong when you’re moving freight and handling the logistics, it’s simply part of the industry. And handling these types of claims and disputes effectively is essential for maintaining the trust and satisfaction of both shippers and carriers.

When something does go wrong, don’t panic, don’t be intimidated, and simply follow the steps outlined above to come to a resolution that works for all parties. Before you know it, and after a few instances, you’ll be a professional when it comes to handling claims and disputes!

Well, I think that just about sums everything up regarding claims. Now, there’s usually a bit more to it, especially when insurance companies get involved, or if the cases escalate and require lawyers and such. But this will serve as a solid foundation for approaching these problems, and of course if you have any additional questions about it, my team and I are happy to help out and share some more tips and advice!

This guide will serve as a rough runthrough of everything you need to know, do, and implement if you want to establish and build a successful freight brokerage from start to finish. 

And the best part? It’s 100% free!

Of course, this crash course is not going to be nearly as comprehensive and in depth as the full Freight Broker Mastery course, but it’s a great stepping stone and starting point for those of you who are looking to enter the industry but still aren’t 100% sure or ready to commit to it.

I hope to see you over in the crash course, and I’ll be back next week with a brand new post here on the blog!