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Freight Broker Claims

No specific claim form is prescribed by law, but four elements are essential: • the shipment must be identified to enable the carrier to conduct an investigation; • the type of loss or damage must be stated; • the amount of the claim must be stated or estimated and • a demand for payment by the carrier must be made. The shipment identification information must include the carrier’s “pro number”, shipper’s number, vehicle number, origin date, delivery date, and commodity description. The claimant’s name must be either; • the entity having title to the goods in transit; • the entity assuming the risk of loss in transit; • an assignee of either (1) or (2) If there is any incident in which the cargo carried by the carrier is misplaced or damaged then a claim must be filed against the motor carrier. It is the responsibility of the shipper to file the claim against the carrier. However, the broker should be willing to offer any assistance needed by the shipper. Usually the shipper must be aware of the claims procedure but in some cases he might need some help from the broker like he might require the name and address of the carrier. The freight brokers are generally not liable for any missing or damaged cargo unless he has performed the required task with negligence. Some industry experts feel the brokers are somehow liable for any damage done to the cargo as the liability is automatically created when the transportation operations undertaken in day to day work lack transportation compliance’s. This implies that if proper business operations are performed on the part of freight broker then he is not liable or less likely to be liable for any damages caused. To avoid any unwanted litigation in the business, the freight broker should thoroughly ensure the pre-qualification process of the carriers and maintain the correct operational procedures. Such business practices will help the broker perform uninterrupted in long course.