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Freight Damage Claims: How to Document at Receiving to Win Every Dispute

February 13, 2026β€’
Freight Damage Claims: How to Document at Receiving to Win Every Dispute

The delivery receipt lands on your desk. Your team signed it "received in good condition." Three hours later, during putaway, you find four cases of damaged product worth $8,000. You file a claim. The carrier denies it, pointing to your clean signature.

This scenario plays out in warehouses every day. Freight damage claims have notoriously low success rates β€” industry estimates put recovery at just 40-60% of filed claims. But the problem isn't usually the carrier's liability. It's the documentation that didn't happen during receiving.

Why Most Freight Claims Fail

Carriers aren't looking for reasons to pay claims. They're looking for reasons to deny them. And poor receiving documentation hands them those reasons on a silver platter.

The most common claim-killing mistakes:

  • Clean signatures: Signing the POD without exceptions waives your right to claim visible damage. The carrier will argue the goods arrived undamaged.
  • Vague exception notes: Writing "damaged" on the POD means nothing. Damaged how? How many units? Where on the pallet? Without specifics, carriers argue the damage was minor or already noted in their liability limit.
  • Missing photos: Your word against the carrier's. Guess who wins?
  • Late discovery: Concealed damage must typically be reported within 5 days. Miss that window, and you're out of luck regardless of the damage severity.
  • Incomplete documentation: Missing the bill of lading, invoice, or packing list? Claim denied for insufficient evidence of value.

Each of these failures happens at receiving. By the time you discover the problem, your documentation window has often closed.

The 30-Second Rule for Damage Documentation

Here's the reality: your receiving team has a narrow window to capture the evidence that makes or breaks a claim. Make it part of your standard process, not an afterthought.

Before the Driver Leaves

Inspect the shipment at the trailer. Don't wait until goods are staged. Look for:

  • Crushed or torn packaging
  • Water damage or staining
  • Shifted loads or broken stretch wrap
  • Missing pieces compared to the bill of lading
  • Temperature indicators for cold chain (if applicable)

Note exceptions with specifics. On the POD, write exactly what you observe:

  • βœ… "Pallet 3 of 8: 4 cartons crushed, contents possibly damaged"
  • βœ… "Shipment short 2 cartons vs BOL, received 48 of 50"
  • βœ… "Trailer floor wet, 6 cartons show water damage to packaging"
  • ❌ "Damaged" (means nothing)
  • ❌ "Subject to inspection" (carriers ignore this)

Photograph while the truck is still there. Capture:

  • Trailer number and license plate
  • Overview of the damaged area in the trailer
  • Close-ups of each damaged package
  • Any visible product damage
  • The POD after you've written exceptions

The driver signature on a POD with exceptions is your best evidence. They've acknowledged the damage existed before it left their custody.

Handling Concealed Damage

Not all damage is visible from the outside. A sealed carton might contain shattered contents. A pallet that looks fine might have crushed product in the center. This is concealed damage, and it's harder to claim β€” but not impossible.

The 5-day rule is critical here. Under federal regulations (49 CFR 370.9), concealed damage must be reported to the carrier within 5 days of delivery for full protection. After that, the burden of proof shifts heavily against you.

When you discover concealed damage:

  1. Stop putaway immediately. Leave the damaged goods exactly where you found them.
  2. Photograph the intact outer packaging. Show there's no external indication of damage.
  3. Photograph the damaged contents. Multiple angles, close-ups of breaks or defects.
  4. Preserve all packaging. The carrier may want to inspect. Throwing away packaging destroys evidence.
  5. Request a carrier inspection. Under federal rules, carriers have the right to inspect before you dispose of anything.
  6. File within 5 days. Don't wait for the inspection to submit your written claim.

Document your timeline. Note when the shipment was received, when damage was discovered, and when you notified the carrier. This paper trail demonstrates you followed proper procedure.

Building a Bulletproof Claim File

When you file, the carrier's claims department will look for any reason to reduce or deny. Give them nothing to work with.

Required Documentation

  • Bill of lading: Original, showing shipment details and carrier acceptance
  • Proof of delivery: With your exception notes, signed by the driver
  • Photos: Timestamped, showing damage, packaging, labels, and trailer
  • Commercial invoice: Proving the value of damaged goods
  • Packing list: Showing what was supposed to be in the shipment
  • Inspection report: If the carrier performed one, or your internal damage assessment

Optional but Helpful

  • Repair estimates: If goods can be repaired rather than replaced
  • Salvage documentation: What you recovered or sold at reduced value
  • Customer complaints: If the damage caused downstream issues
  • Witness statements: From receiving staff who observed the condition

The Claim Letter

Be specific, factual, and professional. Include:

  • Your claim amount with calculation
  • Date and location of delivery
  • Carrier name and shipment reference
  • Description of damage and how discovered
  • What resolution you're requesting

Avoid emotional language or accusations. Stick to documented facts. The claims adjuster processes hundreds of these β€” make yours easy to approve by presenting clean evidence.

Preventing Claims Before They Happen

The best claim is one you never have to file. Strong receiving practices reduce damage exposure from the start.

Reject visibly damaged shipments. You're not required to accept freight that's obviously compromised. Refusing delivery puts the problem back on the carrier before you've signed anything.

Unload carefully. Rough handling during unloading causes damage that gets blamed on the carrier. If your team drops a pallet, that's not a valid claim β€” but proving who caused the damage is difficult once goods are mixed.

Train every receiving team member. Everyone who touches inbound freight should know:

  • What to look for during inspection
  • How to write proper exception notes
  • When to photograph
  • When to refuse shipment
  • Who to notify about concealed damage

Use technology. Modern receiving systems can timestamp photos, attach them to receipt records, and ensure nothing gets signed clean without inspection confirmation. Automation removes the human error that causes documentation gaps.

What Carriers Hope You Don't Know

A few insider points that work in your favor:

Burden of proof shifts after delivery. Once the carrier delivers and you've signed (even with exceptions), they've met their basic obligation. But if your exceptions are specific and documented, the burden shifts back to them to prove the damage didn't happen in transit.

Carriers track claim success rates. Warehouses that file bulletproof claims get taken more seriously. Adjusters know which shippers have their documentation together β€” and which ones can be denied on technicalities.

The Carmack Amendment is your friend. For domestic shipments, this federal law establishes carrier liability for damage regardless of fault. You don't have to prove negligence β€” just that the goods were damaged in transit and you documented properly.

Settlement isn't the only option. If a carrier denies your claim, you can escalate. Small claims court for smaller amounts, or formal arbitration for larger ones. Carriers often settle when they see you're serious and have documentation to back it up.

The Legal Weight of Certified Measurements

Here's something most warehouses overlook: NTEP-certified dimensioners give you legal standing that tape measures never will.

When a carrier disputes your damage claim β€” arguing the shipment weight or dimensions don't match your records β€” what evidence do you have? A handwritten note? An Excel spreadsheet? Good luck defending that in arbitration.

NTEP (National Type Evaluation Program) certification means a dimensioner has been tested and certified for "legal-for-trade" use. In practical terms, this means:

  • Court-admissible measurements: NTEP-certified data carries legal weight. When you escalate a dispute to arbitration or small claims, certified measurements are treated as objective evidence, not your word against theirs.
  • Carrier challenges fall flat: "We measured it differently" doesn't hold up when your system has NTEP certification and theirs doesn't. You're operating on legal terrain; they're guessing.
  • DIM weight disputes become winnable: Carriers love to re-measure and re-bill. If your certified system captured the dimensions at receiving, you have defensible data showing exactly what arrived at your dock.
  • Audit trail with timestamps: Certified systems log every measurement with time, date, and often photos. This chain of evidence is exactly what claims adjusters and arbitrators need.

Think about it from the carrier's perspective. When they see a claim backed by NTEP-certified dimensional data, timestamped photos, and proper exception notes β€” they know they're not dealing with a warehouse that guesses. They're dealing with one that has the documentation to win. Suddenly, settling looks a lot more attractive than fighting.

The investment in certified measurement equipment pays for itself not just in billing accuracy, but in the claims you actually recover. One successful $10,000 claim can justify the upgrade.

Making Documentation Automatic

The challenge with receiving documentation is that it adds time to an already pressured process. Trucks are waiting, docks are full, and someone's asking why that receipt isn't closed yet.

That's why the best warehouses build documentation into their receiving workflow β€” not as an extra step, but as part of the standard process. Photo capture happens automatically. Exception notes are required fields before signatures. Timestamps are recorded without manual entry.

At Sizelabs, we've built this kind of automated evidence capture into Parcel AI and Pallet AI. Every item that passes through the system is photographed and measured with timestamps, creating a visual record that holds up in disputes. If you're looking to strengthen your receiving documentation without slowing down your dock, learn more about our approach or get in touch.