Claims Procedure - Loss and Damage

GENERAL RULES

1. SHIPPER/CONSIGNEE RESPONSIBILITY

A. SHIPPER RESPONSIBILITY: Shippers are responsible for load count (unless otherwise specified), proper packaging, unitization and adequate blocking and bracing of lading for intermodal transport.

     Union Pacific Loading Guide

     ATA's Security & Loss Prevention Management Council


B. CONSIGNEE RESPONSIBILITY: In the event of damage, the consignee is responsible to mitigate the loss. This would include, but not be limited to, sorting, recouping and salvage.

2. DISPOSITION OF DAMAGED PRODUCT

A. When the carrier pays a total loss on material that is damaged, they are entitled to the damaged goods and are sometimes in a position of disposing of them through salvage markets or however they can realize the best return. In some cases it may be best, in order to maximize the claim, to assist them in locating salvage markets or accepting material on an agreed depreciated amount.
In disposing through salvage of products with your customer’s name on them, care should be taken that such defective goods may not reach the marketplace and create liability claims problems.

B. Care should be exercised in retaining such salvage for whatever disposition the carriers wish to make of it.

C. The carriers have various options with regard to the disposition of salvage:
1. They may wish to pick-it up and dispose of it through a salvager.
2. They may ask for assistance in selling the salvage or arranging a market for it.
3. They may allow the assured/consignee to scrap it.

3. ACCEPTANCE/REFUSAL: The consignee is responsible for receiving damaged product and holding for inspection and it is the consignee’s responsibility to investigate the claim. Therefore, refusal of damaged product is contrary to the claim procedure and may incur charges that are not recoverable through the claim process and may be charged to the party responsible for payment of freight charges as set forth on the original bill of lading. When you become aware of loss or damage or the potential for loss or damage to a shipment, you must IMMEDIATELY notify TARGET TRANSPORTATION by phone (800) 966-0008, followed by a notice in writing (Fax 908-709-4412)

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