Claims Prevention: Overall Costs Rise Even as Total Requests Drop

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huck Lajeaunesse has been a transportation manager for 35 years and he knows what can happen to freight as it moves from the shipper’s loading dock to the receiver’s door and all the stops in between.

Substandard packaging, improper loading and rough roads all contribute to freight claims, said Lajeaunesse, who runs a claims-processing business in Collierville, Tenn., for a handful of large shippers.

“Follow any truck. It’s a rough environment,” he said. “It’s just part of business.”

Only a tiny fraction of truck shipments — about 1% annually — generate some sort of claim. The problems are mostly due to damage in transit, shortages and theft.

However, while the overall number of claims is small — and getting smaller each year — the average cost of claims is escalating, according to trucking executives and freight claims experts.

For the full story, see the April 19 edition of Transport Topics. Subscribe today.