A Freight claim/transportation claim/cargo claim/damage claim refers to a legal demand by a consignee or a shipper to a carrier or shipper for financial reimbursement for damage or a loss of a shipment. The intention of this claim is for the shipper or a carrier to make consignee or shipper whole. In general, claimants are expected to file the claim to recover the costs, but not including the profits. In addition, claimants are expected to take sound measures to mitigate damage or loss. For instance, in case the product that is damaged has retained some of its value, the carrier or shipper is only required to pay for difference between the damaged value and the original value(Barrett, 234).
A claimant then would be allowed to salvage damaged product through selling it at a cheap cost. At delivery time, the consignee is supposed to examine the shipment for damage or loss. If a loss or damage evidence exists, the consignee must note it on delivery receipt, and this is used as the evidence to endorse the filed claim(Barrett, 235). Even if an evidence of damage or loss exists, the consignee is required to receive the shipment. The four situations under which a transporter is not deemed liable for the damages to the goods include shipper’s fault, defects in goods being transported, the public enemy act, and act of nature. The following is a sample of a freight claim and denial.
410 Park Avenue
New York, USA
RE: Formal Notice of Claim
3rd October 2013
Five computers damaged
Dear Shipping Carrier:
You are hereby alerted that on 2 October 2013, our company shipped from China to New York Computer Distributors at New York a shipment of five computers that were delivered in spoiled condition at destination on 3 October 2013. Therefore, we are filling a claim against your company in the amount of $ 2750 as shown below for the damage sustained to the shipment referenced above.
5 computers damaged
@ 600$ ea. = $ 3000
Less: Salvage = $ 250
Amount of Claim = $ 2750
We thus hold your company accountable for the destruction sustained and hereby assert that we reserve a right to file a claim with your company once the full amount of claim is determined. Our company is attempting to mitigate this damage. Kindly accept this letter as an official notice of damage and return signed copy of the notice to our company admitting its receipt and instruct us within fourteen days if you need to inspect the destroyed freight.
PO Box 28263
5 October 2013
PO Box 27272
2 October 2013
Dear Smith Jones,
Thank you for your current claim application to our company. Our company has already received your letter concerning the claim you filed against us. However, we have denied your claim for the reasons listed below:
- Below standard packaging
We have realized that the packaging of your items was below standard during shipment. You were supposed to secure them in a wooden pallet that we believe would have minimized the damage. Therefore, your fault resulted to the damage hence, under the law, we are not deemed liable for the damages to your goods.
- An Act of God
The Company pilot had a heart attack during the flight and this caused him to crash land hence we believe this was beyond our control and we are not deemed to pay the damages whatsoever.
Thank you for your understanding,
Barrett, Colin. Manager's Guide to Freight Loss and Damage Claims. Washington, DC: International Thomson Transport Press, 2003. Print.