The TV or the stand?

Detailed, timely information is crucial to getting freight claims paid

No one likes to have to file claims for damages or shortages on their shipments. And carriers, like insurance companies, do not like to pay them. Sometimes, it seems their claims departments are set up specifically to deny claims – and they certainly will do everything possible to minimize their loss.

To get your claims paid fully, fairly and promptly, it is vital to provide detailed and accurate information. Start by never letting your staff accept a shipment without visually inspecting the goods for loss or damage, before signing off on a delivery receipt. This should be done in the presence of the driver, who is the carrier’s representative.

If there is damage, it must be carefully noted, with descriptive comments specifying the type and extent of the damage. Examples:  3 cartons torn and contents wet; 5 cartons crushed; 2 cartons leaking; cabinet dented top right corner, etc. The notation “damaged” does not cut it, and opens up a subsequent claim to interpretation. Leave the damaged goods in their original containers, and request an inspection from the carrier immediately.

When a shortage occurs, it is equally critical to identify exactly which item is missing. In an actual case, a client received only one carton in a two-carton shipment consisting of a large-screen television and its floor stand. The receiver filed a shortage claim, and made the following notation on the delivery receipt: “1 short.” Which is it, the TV or the stand? Which do you suppose the carrier wanted to replace?

Always file any claim as soon as possible, preferably the same day. The law gives you nine months before your claim expires, but don’t wait – in this case, time is not on your side.


TOTALogistix
www.totalogistix.com <http://www.totalogistix.com/>
800-989-0054 x105

Threat level continues to rise on YRC

The drumbeat grows louder, the buzzards are circling, the sharks scent blood...

Rumors of the possible impending collapse of LTL giant YRC Worldwide continue to shake the trucking industry ahead of the Overland Park, Kansas-based company’s Feb. 17th deadline for rolling over or restructuring its massive bank debt. Despite anticipated labor cost savings of over $335 million for 2009, including an unprecedented 10% wage giveback by the Teamsters, doubts persist about YRC’s continued viability as it struggles to integrate its Yellow Freight and Roadway units.

The Kansas City Star reports the company is confident that the cost-cutting they have undertaken and the continued cooperation of their banking group will allow them to stave off bankruptcy, but nervous shippers are exploring alternatives. Industry veterans know that having your goods in the pipeline of a carrier who goes belly up is a nightmare scenario for a company. Freight can be frozen in the pipeline, with no employees remaining to locate, much less deliver it, and even ownership of the products making up the shipments tendered to the defunct carrier can be called into question. Should this worst case occur, it typically happens with little or no advance warning.

YRC is the largest LTL carrier in the country. Should it fail, removing its enormous capacity from the nation’s transport grid, there will be major ramifications for anyone who ships in the US. The resulting scramble for the business could make DHL’s exit from the domestic package market look like a picnic, and UPS and FedEx will likely gain significant new market share and negotiating clout.

What role the Obama administration or the Democratic congress might take when faced with the loss of tens of thousands of union jobs is an additional wild card. This ongoing situation is volatile, deadly serious, and bears close attention by transportation professionals and the companies who rely on them.


TOTALogistix

1-800-989-0054 x105
www.totalogistix.com