April 25, 2019

What is a Shipping Container Claim?

 

Shipping container claims, also known as damaged cargo claims or freight claims, are a legal demand by a shipper or consignee to a carrier for financial reimbursement of damages or losses to a shipment.

In today’s marketplace, it is the consignee’s responsibility to initiate the claim and document any cargo loss or freight damage. Damage or loss should be observed at the time of shipment delivery and noted on the bill of lading or delivery receipt.

How long do you have to file a container damage claim?

The Carmack Amendment specifies that claims must be acknowledged by the carrier within 30 days of initial filing. A final disposition of the claim must be given in writing within 90 days.

Damaged cargo claims equal $1.8 billion annually in the shipping industry and comprise a giant headache for shippers.

Industry statistics show that in 2018, over a third of all logistics and transportation companies were asked to pay for container/trailer damage for which they had no liability. Over half of those claims were paid because companies lacked the proof needed to deny claims.

With Photector, damaged cargo claims become easy to assess and process. Photector allows trucking companies, hubs, ports and drivers to document the condition of containers when delivered to a consignee thru photo proof, snapped with a smart phone and uploaded to the app.

The simple 5-step process uses Blockchain technology to establish undeniable photographic proof of shipments being interchanged between parties. A digital document is created with a date and time stamp, verifying and authenticating the location where the digital document was captured.

How to take photos of shipping containers to avoid liability?

Photector makes it simple:

  1. To start, users type in a brief description of the Event and enter as many tags as needed to easily identify the Event (“Chassis”, “Damaged”, “Rear Corner”, “BN”).
  2. Photos are taken with the user device — up to 50 photos may be taken to record the interchange.
  3. User taps “Upload Event” when done and Photector obtains & confirms a Blockchain certification and stores the information in Photector’s platform for easy access and retrieval.
  4. Users may review any stored Event through the Photector app or website to verify the Blockchain Proof of Authenticity, Event Summary, Tags, Details, Geo Locations & unique Blockchain Hashes.

Once damage is recorded, the consignee must accept the shipment, render payment and begin the freight claim procedure with the shipper.

Processing claims can be frustrating, expensive and time consuming for all parties involved. Photector decreases the liability for shippers and transporters and should be a resource every driver has on their smartphone.

Click here to start a free trial of Photector today!

Photector Is Changing The Way Trucking & Logistics Companies Protect Themselves

  • Find out how to prevent damage claims you didn't cause
  • Squeeze more profit out of every trip
  • Save time, hassle & relationships
  • Securely Document the State of Equipment
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