Concealed Damage Claims: What Shippers Need to Know

Freight carriers are undergoing a significant shift in how they handle concealed damage claims. Traditionally, carriers have been willing to process claims for damage that wasn't immediately visible upon delivery—known as concealed damage. However, changes in the industry are altering this practice, and it's essential for shippers to stay informed to protect themselves and their shipments.

As carriers tighten their policies, understanding these changes and taking preventive steps will help you avoid potential pitfalls. This blog will break down what concealed damage is, how the shift impacts you, and the best practices to protect your freight.

What is Concealed Damage?

Concealed damage refers to any damage that isn't immediately visible upon delivery but is discovered after unpacking the shipment. This type of damage has long been a point of contention between shippers, consignees, and carriers.

In the past, carriers typically allowed claims for concealed damage within a specific window—usually within 24 hours of delivery. Even when accepted, concealed damage claims often paid out only a fraction of the shipment’s value, usually around one-third. But as costs rise and fraud risks grow, more and more carriers are tightening their rules and becoming less willing to cover such claims.

The New Process: Reporting Damages Immediately 

A growing trend among carriers is refusing claims for concealed damage if no damage is noted on the proof of delivery (POD) at the time of delivery. This means that even the smallest sign of damage to the outer packaging must be recorded on the POD, otherwise, your claim may be denied.

What This Means for Shippers

1. Thorough Inspection

When you receive your shipment, carefully inspect all packaging and the visible parts of the goods inside. Look for any signs of damage, no matter how small. Even minor dents or scratches on the packaging could indicate a more significant issue inside.

2. Documentation

If you notice any damage, no matter how insignificant, note it on the POD. Make sure this documentation is thorough and clear—both for minor and major damages. This step is critical for any potential claims you may need to make.

3. Photographic Evidence

Take photographs of any damage to support your documentation. Pictures provide vital evidence if there is ever a dispute about the condition of the goods upon delivery. These images, along with your notes on the POD, create a strong case should you need to make a claim.

4. Immediate Reporting

If your shipment does suffer damage, report it immediately to your carrier’s claims department or customer care team. Delaying this step could result in your claim being denied, as many carriers now require swift notification for any damage-related claims.

How to Safely Package Your Freight

Given these stricter policies for concealed damages, it’s more important than ever to ensure that your freight is securely packaged. Proper packaging not only minimizes the risk of damage during transit but also strengthens your case in the event that something does go wrong.

Here are a few key strategies to protect your shipments:

1. Use High-Quality Materials

Invest in sturdy, durable packaging materials. Flimsy boxes or insufficient cushioning leave your shipments vulnerable to damage. High-quality materials can make a significant difference in keeping your goods intact during transit.

2. Securely Seal Packages

Make sure all packages are sealed tightly using heavy-duty tape. Reinforce the edges and seams to prevent boxes from opening or breaking during handling. A secure seal helps keep the contents safe and reduces the chances of damage during transport.

3. Label Clearly

Always label your packages with clear handling instructions. If the contents are fragile, mark the box appropriately to inform carriers that extra care is needed. Clear labeling can help ensure that your shipment is handled correctly throughout its journey.

4. Cushion and Protect

Use cushioning materials like bubble wrap, foam, or air pillows to fill empty spaces and prevent movement inside the package. The goal is to secure the contents so they don’t shift during transit, which is one of the main causes of concealed damage.

5. Palletize or Crate Shipments

Whenever possible, consolidate your goods onto pallets or into crates. Palletizing helps to ensure even weight distribution and provides extra protection, especially for large or heavy shipments. Wrap pallets with plenty of shrink wrap to secure the load and prevent shifting during transport.

For more detailed packaging guidelines, refer to our Freight Packaging Guide, which provides step-by-step instructions to help you protect your freight.

Conclusion: Stay Vigilant and Proactive

Shipping is always a complex process, but with the right strategies in place, you can navigate these challenges. Be sure to communicate with your carrier, keep your documentation thorough, and be prepared to adapt to changing industry standards.

For the safest and most seamless shipping experience, consider partnering with a reliable logistics provider. At FreightPOP, we’re here to help you protect your shipments and avoid any complications with concealed damage claims. Ready to streamline your shipping process? Start by getting your freight quote today and see how much you can save!