Is It Worth It to File Carrier Claims?
Let’s face it, filing claims with your carriers can be a pain. Parcel or freight, no matter the mode, the claim’s filing process can be tedious, time-consuming, and if handled poorly, unprofitable. Unfortunately, this leads many businesses to throw in the towel and divert resources to other areas. While that is one way to go, we here at Zero Down want to make one thing very clear: If you know what you’re doing, filing claims is absolutely worth the effort.
Here are just some of the success stories Zero Down have achieved for our clients over the years:
- Recovered $12k for a client in the first 30 days of filing their carrier claims
- Secured $55k for a client in previously unresolved claims that had been unpaid for months
- Improved a client’s success rate/payout on their claims filing from 40% to 99%
The ROI on filing carrier claims comes from knowing how to efficiently and effectively navigate the hurdles. Once you know how to play the game though, the results can make a big difference to your company’s bottom line.
Common Difficulties with Filing Claims
As we said, the friction built into the claims filing process generally makes logistics leaders decide it’s not worth the effort. And we get it. Sadly, it’s not as easy as simply asking the carriers for a refund. Here are some common problems that companies run into when trying to file claims:
- Timing: Most carriers have established timetables for filing claims for lost or damaged packages. This puts the onus on the shipper to gather the information needed, and submit the claim during their set window. Not to mention then having to follow up accordingly as well. Unfortunately, most companies’ shipping BI’s don’t have the sophistication and package level detail needed to keep track of those windows.
- Documentation: Speaking of information gathering, carriers generally require a good amount of documentation and detail surrounding the lost or damaged package. If businesses lack a consolidated shipping platform, and instead, are trying to gather information from separate sources, pulling that documentation together can be a frustrating and time-consuming process.
- Navigation: Once shippers have the timing down, and the proper documentation, it’s time to actually submit the claim to the carrier. That’s where the next challenge comes in though: Navigating the carrier’s online portal. Every carrier’s portal is slightly different, and comes with their own esoteric eccentricities. And, that’s if the portals are working properly. One of our clients was having difficulty resolving their claims, with the issue going back an entire year. Zero Down eventually identified a glitch in the carrier’s portal that was causing the problem, and then worked with the carrier to get it fixed. In the end, we secured a year’s worth of refunds for our client, showing it pays off, literally, to have a logistics partner who knows what they’re doing.
Benefits of Filing Carrier Claims
In the words of one of our great modern philosophers: If it wasn’t hard, everyone would do it . . . It’s the hard that makes it great. Putting in the effort to properly file claims with your carriers is no easy task, but the rewards are well worth it. On top of putting money back in your pocket, engaging in the claims process can help your relationship with your carriers be the best it can be.
If you would like to learn more, reach out to us today to continue the conversation.