Making the Case to Outsource Freight Claims Management

Time-consuming paperwork for overworked transportation teams drives many companies to outsource freight claims management.

Is it time to consider the benefits when you outsource freight claims management?

If you ship enough freight, you are bound to run into issues occasionally. Damaged and lost shipments are not unusual, with an average 1% of shipments resulting in a freight claim.

 This article explores claims management solutions that save time, reduce costs, and improve claims outcomes to protect your bottom line.

The Typical Claims Process

The lifecycle of a cargo claim typically takes 30-120 days to resolve. Often that resolution involves multiple follow-ups and disputes with a carrier.

The most critical step in the claims process is collecting sufficient evidence to support a freight claim.

Regardless of how obvious damage or loss may seem, carriers want documentation of what caused the damage, when the damage was found, and how much the damaged goods cost. To substantiate a freight damage claim, shippers must provide packing lists, commercial invoices, photographs of the damage, and cargo possession history at the time of filing. Be ready to collect additional documents throughout the process as requested by the carrier.

Monitoring the status of your claims, submitting additional documentation, and disputing denials – it is all incredibly time-consuming, requiring an average of 3.5 hours of labor per claim. Unfortunately, this often falls to overworked, understaffed transportation teams who may need more training on claims or rely on ineffective manual processes. Without standard operating procedures for claims, you may not be able to recuperate costs of legitimate damages, consequently jeopardizing your company’s profits.

Common Misconceptions that Cost Money

“Claims are too much hassle!”

“Carriers always deny claims!”

Too often, shippers use these arguments to defend their decision to not prioritize claims management. Why waste valuable time and resources filing and chasing down claims when carriers are going to deny them anyway?
Unfortunately, these common misconceptions cost companies substantial amounts of money every day. Consider a company operating with a 2% net profit – writing off a claim for just $50 equates to an additional $2,500 in sales to offset that lost profit! Even small claims can wreak havoc on revenues, so the consequence of writing off pallets or full containers of cargo without recovering costs is unfathomable.

Additionally, without filing and keeping track of claims, visibility and root cause analysis are impossible. Mitigating future claims depends on your ability to pinpoint where issues are occurring. Is cargo incorrectly loading? Is inventory consistently missing after transload? Filing and closely tracking claim data is critical to addressing supply chain issues and minimizing claims in the future.

The Value of Freight Claims Management with MercuryGate

As an industry leader in transportation management, MercuryGate recognized the growing need for a freight claims management solution.

So in 2019, we acquired long-time integration partner, TranSolutions, Inc., to deliver simple, straightforward claims management in a single hub. MercuryMyEZClaim is now considered the software gold standard for cargo claim management across all modes of transportation.MercuryMyEZClaim drives value in three areas:

1. Save Time and Reduce Administrative Costs

MercuryMyEZClaim allows shippers to save time and decrease administrative costs associated with claims management through several vital capabilities:
  • Automation of labor-intensive manual activities.
  • Integration with MercuryGate TMS to upload, store, and share documents in a centralized platform.
  • Streamlined, visible communications across the transportation network.
  • Digitization of claims processes to eliminate manual data entry, postage, paper, fax, and file management.
2. Management for All Claim Types

MercuryMyEZClaim does more than just loss and damage claims. Overcharge claims, return authorization claims, vendor chargebacks, and overage, shortage, and damaged (OS&D) can all be managed in one platform. Think of it as a shipment exception workflow station – allowing you to monitor and manage every type of claim and get a big-picture view of how claims impacting their customers or their bottom line.

3. Gain Insight to Correct Claim Issues
MercuryMyEZClaim software gathers, analyzes, and reports the data that drives decision-making. Utilize focused data to identify claim trends and address issues that impact profits by eliminating silos, improving procedures, and increasing efficiencies.

Calculate your potential Saving While Using an enterprise TMS

Freight Claims Made Easy: MercuryMyEZClaim

MercuryMyEZClaim allows you to create, file, manage, and report claims across all locations or customers in a single platform.

It also integrates with MercuryGate TMS to quickly extract existing shipment data into the claims portal, ensuring continuity across the transportation network and throughout the claims process. To learn more about how MercuryMyEZClaim helps shippers maximize resources and protect valuable profits, watch our webinar and tech demo presented during Velocity 2022.

See freight claims management technology in action.


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