Supply chain disruptions and cargo losses continue to increase across the transportation industry, driven by theft, fraud, equipment failures, and inadequate carrier oversight. For shippers, the financial impact can be significant—ranging from lost inventory and missed delivery deadlines to damaged customer relationships. To stay protected, businesses must proactively manage risk while understanding how to strengthen their position if a cargo claim becomes necessary.
Whether shipping domestically or across borders, clear documentation, strong contractual protections, and careful carrier selection are essential. By taking steps before, during, and after transit, shippers can reduce exposure and improve their ability to recover losses when something goes wrong.
Identifying Key Risk Points in the Supply Chain
Understanding where losses commonly occur helps shippers address vulnerabilities before they result in costly claims. High-risk areas include:
- First and Last Mile Transport: Theft rates spike during early pickup and final delivery stages.
- Unsecured Parking or Layovers: Cargo is frequently targeted while vehicles are unattended.
- Double Brokering and Identity Fraud: Fraudulent carriers and unauthorized subcontracting are major causes of high-value freight loss.
- Poor Carrier Vetting: Inadequate screening increases exposure to unqualified or uninsured carriers.
- Documentation Gaps: Missing bills of lading, inaccurate manifests, or unclear instructions weaken claims and slow recovery.
Recognizing these risk points allows shippers to improve procedures and reduce the likelihood of loss.
Practical Strategies to Reduce Cargo Loss Risk
Shippers can significantly strengthen their supply chain resilience by implementing strategic protections:
Strengthen Carrier Qualification Processes
Verify FMCSA authority, safety ratings, insurance coverage, and past claims history before assigning loads.
Use Clear and Detailed Contracts
Contracts should define liability, required security measures, indemnification obligations, and procedures for reporting loss or damage.
Enhance Shipment Visibility
GPS tracking, telematics, and real-time monitoring improve situational awareness and reduce opportunities for theft.
Increase Security for High-Value Freight
Use team drivers, sealed trailers, secure yards, and designated safe-parking networks.
Document Every Stage of the Shipment
Digital timestamps, condition reports, and signed delivery confirmations strengthen claims and prove chain of custody.
Proactive measures significantly reduce the likelihood of supply chain interruptions and cargo loss.
Building Stronger Cargo Claims When Loss Occurs
Despite best efforts, losses can still happen. A strong cargo claim requires:
- Immediate Notice to All Parties Notify the carrier, broker, insurer, and law enforcement quickly to preserve coverage rights.
- Meticulous Documentation Include bills of lading, rate confirmations, invoices, tracking records, and communication history.
- Understanding Carmack and Contractual Liability The Carmack Amendment governs interstate carrier liability, but contractual terms may expand or limit recovery.
- Preservation of Evidence Maintain damaged goods, packaging, and photographic evidence to support the claim.
- Legal Review of Contract Terms Liability caps, deadlines, and notice requirements can determine whether a claim succeeds or fails.
Shippers who respond quickly and methodically are far more likely to recover losses.
Did You Know?
Most cargo claims are denied on technical grounds—such as late notice or incomplete documentation—rather than the merits of the claim itself.
Legal Guidance for Reducing Supply Chain Risk
Preventing losses and strengthening cargo claims requires a clear understanding of carrier contracts, liability laws, and industry best practices. At Putterman Law, we help shippers evaluate risk, draft protective agreements, investigate freight losses, and pursue compensation when goods are stolen, damaged, or mishandled. With experienced legal support, businesses can safeguard their supply chain and improve recovery outcomes when disputes arise.
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FAQs
What are the most common causes of supply chain losses?
Losses often result from theft, fraud, cargo misrouting, poor carrier oversight, inadequate documentation, and unsecured parking or layovers.
How can shippers choose reliable carriers?
Verify FMCSA authority, safety history, insurance coverage, and operational consistency, and document all vetting steps.
What documents are essential for filing a strong cargo claim?
Bills of lading, rate confirmations, delivery receipts, invoices, tracking data, and all communications with carriers or brokers.
How does the Carmack Amendment affect cargo claims?
The Carmack Amendment governs interstate carrier liability and outlines the shipper’s burden of proof, exceptions, and available damages.
How does Putterman Law assist shippers in preventing losses and handling claims?
Putterman Law drafts protective contracts, reviews carrier relationships, investigates losses, and pursues claims against carriers, brokers, and insurers to recover damages efficiently.
