This interconnected world of businesses requires coherent freight transportation from container ports to assigned locations. Some claims are required to manage these complicated logistics trends and ensure secure freight forwarding operations. LTL freight claims (Less than Truck Load) are one of the major claims used for managing the shipment’s security. They are crucial for businesses that transport goods in less quantity than a truck can accommodate. Under this set of claims, tailored and customized tariffs decide the carrier’s liability. 

With the help of this holistic content, we will uncover the composite nature of LTL freight claims, exploring its intricate processes, principles, and steps through which you can navigate this comprehensive structure efficiently. 

What is the LTL freight claims process?

LTL freight claims are a process of claiming compensation from the carrier for snags such as damage, shortage, or loss of goods during the shipment. The condition is that the shipment must be LTL, which means shipping the goods in less quantity than the truck can load. Unlike FTL shipments (Full Truck Loads), where a single consignor exists throughout the journey, it requires the involvement of multiple stakeholders. You can segregate the LTL freight international shipping claims into two parts: 

• LTL freight is a shipping methodology in which smaller goods are transported from one container depot to another. In this method, multiple shipments are submerged into one truck. 
• Claims are filed when there is any issue with the goods’ physical condition or quality during transport. The shipper can file a claim against the carrier for compensation for the damage caused during the logistics cycle. 

The number of LTL shipping depends on the quote types and the freight class of your products. The shipper must inform the carrier of the damage within five calendar days. The goods must be in the same condition as they were initially. Moreover, you must not open the packaging. 

What are the different types of freight claims? 

There are four major types of LTL freight claims that you will encounter in your shipping business. The following are the different types: 

1. However, damage is the most common reason for filing freight claims. Road conditions, improper cargo handling, or packaging may cause damage. 
2. You can claim a loss when you have lost a good or when unaccounted cargo is delivered. 
3. The concealed claim occurs when you discover the loss or damage after delivering the goods and report it to the carrier. 
4. A shortage claim is lodged when you don’t receive the expected cargo amount. This can occur due to improper packaging, goods falling or missing, or other reasons. 

What are the major strategies to optimize your LTL shipments? 

You can adopt several strategies to optimize your LTL freight shipments to avoid damage, shortage, or loss. Following are the major strategies that you can adopt: 

1. Recognize shipping needs: Analyzing your shipment size and distribution channels will help you select the right LTL freight claim for cargo transporting through freight containers. Therefore, you must consider factors like freight class and cubic feet utilized. 
2. Diversify networks: The most prominent challenge in LTL shipments is capacity. LTL freight carriers utilize the information available and technology to decide which freight to accept for transportation. Involving logistics providers helps streamline operations to meet the carrier’s needs. 
3. Collaborate with trustworthy carriers: Collaborating with reliable carriers will eliminate most problems. So, search for carriers that have a good history and customer service. 
4. Data transparency: Shipments will be easier to calculate if your carrier can access most of the shipping data. Adequate information about the weight and quantity of the goods will help the carriers align the trade route more appropriately. 
5. Authenticate information: Divide your freight among various classes to avoid extra expenses or logistical challenges. Double-check the customs to avoid any kind of delay or penalties. 
6. Agility: In LTL freight shipping, multiple shipments are consolidated. It is possible that shipments may not go the way you decided to. That’s why you must prepare yourself for unexpected accidents and associated risks. Carrier communication with other shippers is the most prominent aspect. 
7. Technological advancements: You must adopt technology to get the best results. Use Transportation Management Systems (TMS) for real-time tracing, trade route optimization, and cargo management systems for comparing LTL freight rates.
8. Packaging: Packaging decreases waste produced and optimizes the use of shipment space. Moreover, ensure that you use the appropriate packaging method for the freight type to avoid any damage. 

Steps to navigate LTL freight claims successfully

If you want to optimize your LTL freight claims or navigate through them successfully, you need to follow some basic steps: 

1. Prompt reporting: You must report any variation in the goods immediately upon receipt. Prompt reporting speeds up the claim process and ensures you meet the carrier’s timeline. 
2. Customs clearance: Proper documentation is crucial to managing LTL freight claims. Maintaining all shipment documents, such as bills of lading, packaging lists, and proof of delivery, is crucial to smoothing the shipment process. 
3. Claim follow-up: Regularly follow up on your claim. However, your continuous inquiry will remind the authorities about your claim process. 
4. File claim: Filing a claim is a complex process, but following all the steps methodologically can simplify your tasks. The detailed information helps carriers access and process the information more efficiently. 

What are the challenges in the process of LTL freight claims? 

The process of LTL freight claims is intricate, and certain challenges may occur in between the process. You have to deal with these challenges to avoid any extra expense and time. Therefore, below mentioned are the common challenges: 

1. Common pitfalls: The LTL freight claims process is prone to common pitfalls. Basic issues like misunderstanding the carrier’s claim policy, late reporting, and insufficient evidence are among the common mistakes. Being aware of these mistakes will make a huge difference. 
2. Complex freight policies: You must adhere to some intricate freight policies. You must complete the documentation to ensure a smooth claim. Understanding industry rules and regulations will surely solve this problem and sort the international shipping services. 

How do you report an LTL freight incident?

You must report the LTL freight shortage, damage, or loss within five business days. You have to implement the following steps to report an LTL freight incident: 

1. First, inform the Account Manager (AM) and the Order Support Group (OSG). Include the order number, ship date, freight shipment tracking number, carrier name, and invoice for the goods in the mail. 
2. Then, higher authorities initiate a comprehensive investigation as per your request. 
3. Claim documents submitted to the authorities will be processed, and then they will reach out to the carrier around 2 times a month to ensure the claim for updates. 

Note some important points: 

1. If you discover the damage at the point of delivery, you have 9 months to file the claim. 
2. If you learn about the damage after the point of delivery, then you will have only 5 business days.

How does cargo insurance work for LTL shipments?

LTL cargo insurance protects the cargo that is transported through LTL shipments. There can be unfortunate incidents during the transit. We have LTL cargo insurance to protect the cargo from those unfortunate circumstances. This insurance covers incidents related to cargo damage, loss, or theft. If you need to claim the cargo insurance from the LTL comapnies, here are the certain steps that will help you move forward: 

1. Verification: The first and most important step is verification in the LTL logistics, where you need to verify the cargo condition. You must have legit proof that the cargo you received was damaged, less in quantity or lost. 
2. Media proof: You must take clear pictures of the damaged, lost, or unexpected cargo capacity. These videos and pictures will make the claim process easier. 
3. Consignment note: Last but not least is the consignment note that is left by the carrier. It is needed when you are claiming on the cargo damage or lost.

LTL freight claims are a process of claiming the carrier’s amount by the shipper concerning damage, loss, or shortage of goods. It protects the shipper’s interest with intricate yet precise terms and conditions. As a part of the shipping industry, you need to understand exactly what an LTL freight claim is and how you can file it to protect your cargo. You can also adopt certain strategies to avoid damaging the products during transit. 

LOTUS Containers provides shipping containers that support different shipment types, including LTL shipping. We also provide CSC plates for container types to optimize your shipments.