What is over, short and damaged (OS&D)?
OS&D refers to a freight shipment where cargo is over, short or damaged compared to the bill of lading or other shipping documents. An OS&D incident is addressed with a freight claim for financial reimbursement for affected cargo.
The OS&D meaning applies to freight shipments with an overage, shortage or damage compared to the shipment's original bill of lading:
Overage: Excess freight received over the quantity shipped and listed on a shipping document. A freight overage must be managed—either returned to sender or incorporated into the consignee's inventory and billed accordingly
Shortage: A shipment where freight quantity is less than detailed in the shipping document. For shortages, billing, inventory and order and fulfillment management must be adjusted
Damaged cargo: Cargo received by the consignee can involve obvious or concealed damage, where all or part of the shipment was not visible for inspection at the time of delivery. Damaged shipments are generally accepted, documented and reported in a freight claim for compensation
What is an OS&D report?
An OS&D report is an inspection report completed by the consignee, or receiver, for materials received in a shipment. This report lists every detail about the goods that arrived damaged or in quantities that differ from those detailed in a bill of lading (BOL). The driver and the consignee each receive a copy of the OS&D report.
OS&D freight inspection and documentation
At shipment delivery, the receiver validates cargo condition and quantities against the bill of lading. Before confirming receipt by signing the BOL, the consignee completes a shipment inspection to ensure there are no damages or discrepancies. Because a bill of lading is a carriage contract between the carrier and the shipper, once a BOL is signed free and clear, the shipper loses leverage in filing an OS&D freight claim.
Following the inspection, any shortage, overage or damage is noted on the transportation provider's BOL or proof of delivery (POD). Documentation of specific detail supports OS&D freight claim resolution.
OS&D and freight claims
Freight claim filing is a time-sensitive process following an OS&D report. Shippers file claims against a carrier within a period specified in the carrier's contract or tariff, or as defined by law. Typically, shippers have nine months from delivery to file most freight claim types.
Statutory deadlines for freight claim types
Other statutory deadlines apply depending on the claim type:
Concealed damage: 15 days from delivery
Lost shipment: Within nine months of the expected delivery date, or after a reasonable amount of time for delivery has passed
All other claim types: Nine months from the delivery date
A claim filed after the initial claim period is not valid.
Carrier liability and the Carmack Amendment
As specified in the Carmack Amendment, financial liability for a freight claim falls on the transportation carrier for shipments within the United States. Five exclusions apply that, when validated, alleviate carriers of liability.
A carrier operating in the United States is expected to acknowledge a freight claim within one month of the initial filing. After that, a final disposition must be provided in writing within three months. A claimant has two years to dispute the disposition.
Catch it at the dock
How technology supports OS&D claims management
Technology platforms allow shippers, logistics services providers (LSPs) and brokers to record an exception to a freight shipment delivery as soon as it occurs.
When a shipment problem involves an overage, shortage or damage, all records can be managed in a centralized, cloud-based platform. Incidents can be converted to freight claims and managed within the same platform. Key capabilities include:
Collect and document claim details: Receivers can report incidents, document OS&Ds and later convert incidents to a freight claim—storing all correspondence in the incident record
Monitor trends to reduce incidents: Collect, store and review OS&D history for prevention and risk management
Task scheduling: Users control when tasks are created and scheduled, with alerts to ensure no missed claim deadlines
Data sharing: Cloud-based platforms enable real-time sharing of OS&D incident details among all stakeholders—with detailed privacy settings that control which records an outside party may access
Manage salvage process: Record salvage details within the OS&D incident report, including price, buyer and date sent to salvage