What is a claim?
A demand in writing...
for a specific amount of money...
that contains sufficient information to identify
received by the originating carrier, delivering
carrier, or carrier on whose line the alleged loss,
damage, or delay occurred...
within the time limits specified in the Bill of
Claims are usually submitted on a standard form
for presentation of loss and damage. These can be
obtained from the carrier or purchased at a stationery
store. However, a specific form is not required
and the claim can be filed in letter form.
When To File Claim.
Claims should be filed promptly once loss or damage
is discovered. Time limit for filing is six (6)
months from date of delivery, or, in the event of
non-delivery, six (6) months after a reasonable
time for delivery has elapsed. If the claim is not
received by the carrier within this time, payment
is barred by law.
Who Should File Claim?
A claim may be filed by the shipper, consignee,
or the owner of the goods. The party that has suffered
an actual loss should be the claimant.
With Whom Should Claim Be Filed?
The claim may be filed with the originating carrier,
delivering carrier or an intermediate carrier if
determined that loss or damage occurred while in
the possession of that carrier. However, we prefer
that EDI Express customers file against EDI Express.
The claim will be handled by EDI Express, and EDI
Express will file against the responsible party.
Original invoice verifies that the amount of the
claim does not exceed the terms of sale (value of
the goods) at destination, and excludes any prospective
profit. The original invoice must disclose all discounts
and allowances, if any. A clear photocopy is acceptable.
Repair or Replacement Invoice (if applicable):
When sending a repair invoice, it should include
a breakdown of hours, labor rate, and materials.
Concealed Loss Or Damage.
When damage is discovered after the delivery receipt
is signed and the cartons are opened, it is termed
concealed damage. When this occurs, the carrier
should be contacted immediately to request an inspection.
While awaiting inspection, the consignee must hold
the shipping container and its contents in the same
condition they were in when damage was discovered.
The carrier will send a representative to perform
the inspection or will waive inspection.
The inspection report is not a claim. It is the
responsibility of the claimant to file a cargo claim
within the prescribed time frame and to respond
to any requests from the carrier for supporting
documentation. The claim will then be concluded
based on facts determined during investigation.
Burdens of Proof.
The law requires that the claimant establish three
The carrier received the freight in good condition
The freight was short or damaged at delivery.
The dollar amount of loss or damage.
Paying the Freight Bill.
Section 217(b) of the Interstate Commerce Act (49
U.S.C.317(b) prohibits a carrier from collecting
any charges different from those published in the
carrier's effective tariff. The payment of freight
charges may not be postponed due to alleged loss
or damage. These charges should be paid in full
and the portion applicable to the lost or damaged
item should be included in the freight claim.
Claims and payment of freight charges are two entirely
ICC regulations prohibit withholding payment of
freight bills because of a pending claim or claims.
Without payment of freight charges, payment for
transportation has not been made. A valid claim
will not be paid until freight charges are paid.
Salvage must be retained until the claim is resolved,
or until the claimant is given disposition by the
carrier. No salvage is to be disposed of without
written authorization from the carrier.
If Claim Is Declined.
If the claim is declined, and the claimant feels
it should have been paid, the claimant should present
their rebuttal in letter form to the carrier. If
claimant has additional information or evidence,
it should be included. Always refer to the assigned
claim number when corresponding with the claims
The majority of claims are paid or declined within
30 days of receipt by EDI Express. Upon receipt
of the claim by the Claims Department, the claimant
will receive a written acknowledgment. In cases
where a claim cannot be concluded within 120 days,
another notification will be sent to the claimant
and further notices of the claim's status will be
sent each 60 days thereafter until concluded.