The $1 Billion Freight Claims Problem: (and How to Fix It)

Damage, shortages, and lost (or stolen) shipments are part of the daily reality in freight shipping. Yet, despite how common freight claim situations occur, the majority of filed claims fail to be won by claimants, costing them (the claimants) over $1 billion each year. Tight margins and rising expectations demand better, but most companies are still managing claims with outdated methods and fragmented systems.

Here’s a closer look at the problem — and what solutions are emerging to address it.

The Scope of the Problem

The numbers are clear: more than 50% of freight claims are rejected across the industry. Whether the issues stem from technical errors, missed deadlines, or gaps in documentation, the result is the same: substantial financial losses for businesses large and small. For freight brokers, delays in claims processing can also damage client trust and affect retention.

Beyond the monetary impact, there is another challenge. Many brokerages operate without a clear or standardized system for managing claims. Instead, processes are often fragmented, reliant on manual entries, individual judgment calls, and limited tracking capabilities. This lack of consistency not only increases the odds of denials but also leaves organizations "biting the bullet," absorbing losses that could have been recovered with better systems in place.

Root Causes of Claim Failures

Understanding why claims fail is the first step toward fixing the system. Across the freight sector, three primary factors are consistently responsible for claim denials:

1. Missed Deadlines: Every freight claim is governed by strict timelines. Depending on the type of claim—damage, loss, or shortage—the deadline for filing can range from a few days to several months. However, delays in gathering information or submitting necessary paperwork often result in automatic denials, regardless of whether the claim itself is valid.
2. Inadequate Documentation: A successful claim requires a clear trail with no errors in between. Missing or incomplete documents such as bills of lading, delivery receipts, inspection reports, and photographic evidence frequently lead to rejected claims. Carriers and insurers typically demand detailed proof, and the absence of even one document can undermine the case.
3. Process Inefficiencies: Many companies still manage claims using spreadsheets and email chains. This manual approach leaves significant room for human error, inconsistencies, and lost documentation—all of which increase the likelihood of claim failures.

The Role of Automation and Technology — and How It Can Solve the Problem

Technology alone cannot eliminate claims, but it can drastically reduce the number of claims that are denied due to preventable errors. By integrating automation and digitization, companies can address the systemic weaknesses that currently plague the claims process.

Improved Accuracy (No More Guesswork): AI-powered systems ensure all required fields are completed, classify documents automatically, and flag missing information before submission.

Deadline Management (Never Worry About a Deadline): Built-in alerts help claims teams stay ahead of tight filing windows, minimizing denials due to missed timelines.

Better Recovery Rates (Fewer Claims Lost): Faster filing, cleaner documentation, and fewer admin errors all translate into more claims paid, and paid sooner.

In a down market, brokers who streamline claims can turn operational pain into a client retention advantage.

How FreightClaims.com Can Help

Fixing freight claims issues at scale requires more than better policies; it demands better systems. FreightClaims.com is building a smarter, faster path to claim recovery, starting with documentation, deadlines, and automation.

• Documentation Accuracy:  FreightClaims.com is designed to make document collection and organization a built-in part of the claims workflow. Instead of chasing missing bills of lading or incomplete delivery receipts after a claim is filed, the FreightClaims.com system requires complete, verified documentation upfront. This helps reduce denial rates stemming from paperwork errors, which remain one of the most common reasons claims are rejected.
• Automated Deadline Tracking: One of the more preventable reasons claims fail is missing strict carrier deadlines. FreightClaims addresses this by integrating deadline alerts and tracking directly into the platform. Users are notified well in advance of critical dates, helping teams prioritize submissions and minimize the risk of expired claims.
• Process Optimization: Manual claims processes often leave gaps: lost emails, misfiled reports, or simple human error. FreightClaims streamlines claims with centralized dashboards, automated workflows, and carrier communication tools, reducing errors and speeding up resolutions.

FreightClaims.com is arguably the best solution to this $1B+ problem, and the broader takeaway is clear: companies investing in purpose-built technology for claims management are putting themselves in a stronger position to recover losses and protect their bottom line.

A Call To Action

Freight claims have long been a source of financial loss and operational drag. But as the freight market tightens, companies can’t afford to treat them as an afterthought.

By addressing the root causes—missed deadlines, incomplete documentation, and manual errors—and embracing automation, the industry has a clear path forward. Billions in recoverable revenue are at stake.

The tools exist. The processes are proven. Now it comes down to execution.

Ready to simplify your freight claims? Explore how FreightClaims.com can help.