Concealed Damage: What to Do When You Receive Damaged Freight
Freight shipping isn’t always smooth sailing. Sometimes, a shipment looks pristine on the outside, but when you open it up—surprise!—you have concealed damage, and it’s a frustrating challenge for anyone who relies on timely, intact deliveries.
But don’t panic. With the right knowledge, you can address the issue, get your claim process moving, and start recouping your losses without a hitch. In this guide, we’ll break down what concealed damage is, why it happens, and how to handle it like a pro.
What is Concealed Damage?
Concealed damage occurs when a shipment looks perfectly fine on the outside, but the goods inside are damaged. It’s one of the more frustrating aspects of freight shipping—especially because the damage is often discovered too late, after the carrier has left. This hidden damage can disrupt operations, delay projects, and lead to unexpected costs if not addressed quickly.
The best way to think about concealed damage is like a new car on a lot. The second you drive off the premises, the value drops like your 401K did in 2009 (actually worse). Likewise, the second you sign the delivery receipt 'Clear' and the driver leaves the freight on your dock, it loses 2/3 of its recoverable value. (That’s right, 2/3 right off the bat.) This is why you need to be critical when accepting shipments and be sure things are actually as they seem.
Causes of Concealed Damage
Concealed damage can happen for various reasons, and they’re usually outside your control. Understanding these causes can help you identify the issue, document it appropriately, and strengthen your claim.
Rough Handling During Transit: Heavy loads or improper stacking can shift or crush goods, even if the outer packaging looks intact.
Inadequate Packaging: Fragile items packed with weak materials or insufficient cushioning are more likely to sustain hidden damage.
Improper Loading Techniques: Careless stacking or overloading pallets can put undue pressure on your shipment, resulting in damage that isn’t visible at first glance.
Environmental Factors: Exposure to extreme temperatures or humidity during transit can compromise goods without any obvious signs on the packaging.
What to Do When You Find Concealed Damage
First things first—you need to understand the importance of thoroughly examining freight before signing off on it. The delivery receipt (DR), or Proof of Delivery (POD), is the document around which all things legal revolve. So always make sure you inspect the full shipment before signing the DR clear.
Don’t rush the process, take your time. If the driver lets you open potentially damaged packages to inspect the products inside, do it. If not, you might want to assume that the damage is extensive, and you should consider refusing the shipment. Then the onus is back on the carrier, not you.
If you see anything at all that indicates something is amiss, make a note on the DR or POD, even if you note "potential concealed damage." This can save weeks or even months of pain dealing with a concealed damage claim.
Once you realize you do, in fact, have concealed damage, remain calm and follow these steps:
Inspect and Document Immediately
The moment you notice concealed damage, carefully inspect all affected items. Take clear, time-stamped photos of the damaged goods and their packaging from multiple angles. Don’t forget to include images of any labels or markings on the shipment. Remember, there's no such thing as over the top with documentation. You'll know what I mean when the inspector shows up (yes, freight inspector is actually a career).
Notify the Carrier and File a Claim
Most carriers have strict deadlines for reporting concealed damage—sometimes as little as 48 hours. Contact the carrier immediately to initiate the claims process. Provide them with all necessary documentation, including photos, delivery receipts, and a detailed description of the damage. Be prepared to follow up regularly to ensure your claim is processed in a timely manner, as carriers have a tendency to drag their feet in processing claims and may need a little push to get it done.
Communicate with the Shipper
After notifying the carrier, reach out to the shipper to let them know what happened. In many cases, carriers may try to push responsibility back on the shipper (think issues with packing and loading), so you’ll want to give them a heads-up. Share your documentation and discuss your options, like arranging for a replacement, refund, or repair. Open communication with all parties will make the process faster and lead to quicker resolution.
Why Acting Quickly on Damaged Freight is Essential
Delaying action on concealed damage can lead to bigger headaches down the road. Here’s why addressing the issue quickly is so important:
Financial Impact: Late claims are often denied, leaving you responsible for the cost of damaged goods, even if they are unusable.
Longer Resolution Times: The sooner you report damage, the faster the claim can be resolved. Waiting only complicates the process.
Strained Relationships: Prompt communication with carriers and shippers demonstrates professionalism and helps maintain strong partnerships.
Protect Your Freight with TFWW Manchester
Navigating concealed damage claims can be a hassle, but you don’t have to go it alone. Partnering with a reliable freight expert can make a big difference in resolving issues quickly and preventing future issues. At TFWW Manchester, we’re here to take freight challenges off your plate so you can focus on other parts of your business.
Contact us today to learn more about how we can help with all your freight management needs.