Lost or damaged shipments will not be fully covered by the freight company. Freight companies are limited in their liabilities<\/a> towards shippers, so shippers should consider purchasing cargo insurance<\/a> if they want to have full protection against lost or damaged shipments.<\/p>\n If a shipper does not have cargo insurance and solely depends on carrier liability to recoup their losses, their claims process<\/a> will look something similar to the example explained below.<\/p>\n The following is a numerical example of what is covered by freight companies when goods are lost or damaged in transit. This computation takes into account all expenses resulting from loss or delay of goods.<\/p>\n<\/h2>\n
Example of What is Covered by the Freight Company<\/h2>\n
| Loss Experienced by Shipper<\/span><\/i><\/td>\n | Amount<\/b><\/td>\n<\/tr>\n| Claimed Amount<\/b><\/td>\n | <\/td>\n<\/tr>\n | Missing Merchandise<\/span><\/td>\n | US$1377.00<\/span><\/td>\n<\/tr>\n | Original Freight Cost<\/span><\/td>\n | US$ 197.75<\/span><\/td>\n<\/tr>\n | Restock Fee<\/span><\/td>\n | US$ 536.49<\/span><\/td>\n<\/tr>\n | Difference Between Expedited Freight Cost and Standard Ground<\/span><\/td>\n | US$ 267.60<\/span><\/td>\n<\/tr>\n | Total Claimed Amount<\/b><\/td>\n | US$ 2,378.84<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | <\/p>\n In this particular example, the company had to expedite a new shipment of their product to a customer to meet a commitment they made to meet their customer\u2019s timeline. Therefore, they experienced additional loss due to a restocking fee and expedited shipping to meet their customer\u2019s timeline. This loss was accompanied by the cost of their missing merchandise, as well as the original freight cost.<\/p>\n |