How shippers can boost profitability by solving freight claims
Freight claims don’t have to drain profits. Learn how leading shippers are using automation to recover more money, faster.
- Blog
Summary: Freight claims are an invisible profit drain for shippers, costing up to 2% of annual revenue in unrecovered losses. The average claim takes 65 days to resolve, tying up cash flow and amplifying operational stress. Rising theft rates, tighter filing windows and complex documentation requirements make recovery harder, especially for distributed teams still managing claims in spreadsheets.
Automation changes that equation. By centralizing documentation, standardizing workflows and integrating with systems like TMS or ERP, shippers can reclaim revenue once written off and protect margins in a volatile logistics landscape.
Are you seeing hard-earned profits disappear due to inefficient freight claims management? You're not alone.
Last year, Infios Claims Management users filed more than half a million freight claims valued at almost $1.5 billion. Most often these claims result from damaged freight, lost packages and even cargo thefts which continue to rise.
During our recent webinar, "Boosting shipper profitability by solving claims management," we revealed that the average shipper loses up to 2% of their revenue to unrecovered freight claims each year. That's a significant hit to the bottom line. That impact grows when you factor in potential downstream implications of a freight claim.
In this blog, we share key takeaways from our recent webinar and show how automation is helping shippers recover more money, faster.
“Not having something on time and in good condition can be a real problem because it might prevent further production, service or repair. It could create service level challenges with fulfilling or meeting and exceeding your customers’ expectations, particularly for those in the retail, ecommerce or B2B manufacturing space.”
In this article
- Understanding the growing cost of freight claims
- Why inefficient freight claims management hurts profitability
- Automating freight claims to streamline and standardize workflows
- Improving freight claim recovery rates with complete, centralized data
- Eliminating root causes: using claim insights to prevent future losses
- Boosting shipper profitability with Infios Claims for shippers
- Freight claims Q&A: insights from the Infios experts
- Resources to strengthen your freight claims management strategy
Understanding the growing cost of freight claims
Freight claims are increasing worldwide - especially for cargo theft, which now costs an estimated $6.6 billion annually in the U.S. and €8.2 billion in Europe.
According to CargoNet, theft-related claims in North America rose by 13% year-over-year through Q2, with a 10% increase since Q1 alone.
There’s no magic solution for freight claims after cargo theft, damage, shortage or dozens of other claim reasons affecting 1% of shipments.
However, takeaways from our Infios webinar can help shippers understand how freight claim technology alleviates a cost burden and returns dollars to the bottom line.
- Recognize the freight claims financial impact: Any freight claim that generates added costs, reduces product value or diminishes customer experience can quickly erode profit margins. An average 65-day claims resolution period encumbers cash and amplifies the financial stress.
- Streamline and standardize your claims process: By implementing an automation-based solution, shippers significantly reduce the time, effort and administrative costs associated with freight claims filing and management.
- Improve recovery rate with complete claims filing – on time! Shippers speed up the claims process and recover money faster by meeting strict filing deadlines and providing all required evidence, shipping documents and communication records.
- Eliminate root causes for claims: Claim cause analysis empowers shippers to identify why a shipment didn’t arrive on time as expected and implement corrective action, such as avoiding carriers with a poor performance record.
Why inefficient freight claims management hurts profitability
The financial toll of unresolved or delayed freight claims is steep. Shippers lose up to 2% of annual revenue in claims that are never recovered. Even low-value claims have hidden costs
“If you let a $50 claim go because you have a rather high claims threshold … it takes about $2,500 of top line sales to recoup the profit you lost on a 2% margin.”
Compounding this, the claims resolution process can take 30 to 120 days. During that time, the shipment or the money tied to it remains in limbo, creating added pressure on operations and profitability.
Automating freight claims to streamline and standardize workflows
Manual claims management consumes time and resources. The average shipper spends up to 10 hours per claim collecting documentation, corresponding with carriers and tracking progress.
For organizations with multiple business units across different geographies, this often means inconsistent processes, missed deadlines and unclaimed reimbursements.
Automation eliminates these inefficiencies. Infios Claims for shippers is a workflow solution that schedules and automates laborious and time-consuming tasks involved in managing multiple claims open across your entire supply chain.
Configured to each unique shipper’s needs, customizable workflows and task tools enable a proactive approach to filing all types of claims:
- Over, short and damaged (OS&D)
- Loss and damage
- Claims against vendors or suppliers for a chargeback or on-time violation
- Return authorization
- Freight overcharge
Did you know?
Infios customers cut their processing time in half, resolving freight claims much faster than shippers managing in spreadsheets.
Improving freight claim recovery rates with complete, centralized data
A successful claim depends on complete and accurate documentation - often scattered across systems like TMS, ERP, WMS and OMS. Integrating these data sources into a single claims management platform ensures all relevant information - bills of lading, sales invoices, shipment photos and communications - is available in one place.
Infios Claims for Shippers automatically syncs related email correspondence, creating a transparent, timestamped record of each claim’s progress. This audit trail not only strengthens cases with carriers but also simplifies follow-ups and accelerates resolution.
Keep in mind: Every carrier has its own rules for freight claims. Certain types of claims must be filed within narrow windows and precise parameters. Many require sufficient proof that a shipper is filing the claim correctly in the proper timeline.
Eliminating root causes: using claim insights to prevent future losses
Centralized freight claims data doesn’t just streamline recovery - it also reveals patterns behind recurring losses. With integrated reporting and analytics, shippers can pinpoint trends such as:
- Which SKUs out of which distribution centers are getting damaged more?
- Is there a pick-and-pack problem or an issue with building pallets?
- Are certain carriers not meeting performance metrics resulting in a higher volume of freight claims?
“If you can use this data to improve your operations, reduce your defects around packaging or anything else that might be causing some of the damages, it makes a big difference for your supply chain.”
Addressing these root causes proactively reduces the volume of claims filed - cutting administrative costs and improving customer experience.
Boosting shipper profitability with Infios Claims for shippers
Find out what success looks like in freight claims management. During the on-demand webinar, our Infios Claims Management experts share the details on a global manufacturer that realized a 100% increase in claims payout during the first six months using the solution.
When shippers automate freight claims filing and follow-up communications, they reduce the risk of errors and omissions and increase their chances for a successful claim. As a result, operational resources can focus on more high-value activities that support the strategic goals of your business.
Freight claims Q&A: insights from the Infios experts
Both. Smaller shippers often lack dedicated resources to manage claims, while large enterprises face challenges in standardizing procedures across global units.
Automation and shared visibility ensure continuity, even when staff rotate or take leave. Many Infios customers reduce average recovery times from 65 days to 30 days.
Not necessarily. High-volume shippers gain efficiency, but even those with complex or multi-party claims benefit from standardized processes and centralized data.
Resources to strengthen your freight claims management strategy
Use these Infios knowledge resources to support your freight claims management:
