Top 10 Freight Liability Claims & How to Prevent Them

Freight moves fast, but claims move faster when something goes wrong. Whether you are a haulier, freight forwarder, logistics operator, importer/exporter, or a manufacturer shipping high-value goods, freight liability claims can hit cashflow, damage client relationships, and trigger painful disputes over who is responsible.

In the UK, the “right” outcome often depends on the contract terms (including Incoterms), the mode of transport, and the applicable liability regime (for example CMR for international road carriage). But regardless of the legal framework, most claims come from a handful of repeatable causes.

Below are the top 10 freight liability claims we see most often, plus practical prevention steps you can implement immediately.

1) Goods damaged in transit (impact, crushing, vibration)

What it looks like: Pallets arrive crushed, cartons are torn, fragile items are cracked, or goods are scuffed beyond resale.

Common root causes:

• Poor packaging or insufficient internal protection

• Incorrect palletisation or overhang

• Load shift due to inadequate restraint

• Forklift damage during cross-docking

• Vibration damage on long journeys

How to prevent it:

• Use packaging standards matched to the product (drop tests, edge crush ratings, shock indicators for fragile goods)

• Specify pallet quality (no broken boards, correct size, no overhang) and use corner boards/strapping

• Train drivers and warehouse teams on load restraint (ratchet straps, load bars, anti-slip mats)

• Photograph loads at collection and delivery (wide shot + close-ups of seals, pallet condition)

• Introduce a “refuse unsafe load” policy so drivers are not pressured to move poorly packed freight

2) Water damage (rain, condensation, leaks)

What it looks like: Cardboard softens, labels run, electronics corrode, mould appears, or goods are declared unsaleable.

Common root causes:

• Trailers/containers with damaged roofs, doors, or seals

• Poorly wrapped pallets (thin stretch wrap, gaps, no top cover)

• Condensation in containers (“container rain”) on temperature swings

• Incorrect storage at depots (outside, uncovered)

How to prevent it:

• Pre-trip inspections: roof integrity, door seals, floor condition, and drain holes

• Use waterproof pallet covers for moisture-sensitive goods and label “keep dry” clearly

• For containerised freight: use desiccants, ventilation where appropriate, and moisture barriers

• Document condition at handover and note any wet packaging on the POD immediately

• Store at depots under cover and segregate “moisture sensitive” freight

3) Theft from vehicle or premises

What it looks like: Curtains slashed, seals broken, partial theft of cartons, or entire loads stolen from unsecured yards.

Common root causes:

• Parking in high-risk areas or stopping at unapproved locations

• Poor physical security (no fencing, weak gates, no CCTV)

• Inadequate key control and driver procedures

• Insider risk (information leakage about high-value loads)

How to prevent it:

• Route planning with approved secure parking and “no stop” instructions for high-value loads

• Use TAPA-style security principles where feasible (CCTV, lighting, access control)

• Fit anti-theft devices: door sensors, GPS tracking, geofencing alerts

• Seal management: numbered seals logged at collection and checked at delivery

• Limit load information to “need to know” and use anonymous load descriptions in systems

4) Misdelivery (delivered to wrong address or wrong recipient)

What it looks like: Freight is signed for by someone not authorised, delivered to a neighbouring unit, or left “somewhere safe” and disappears.

Common root causes:

• Incorrect address details or outdated delivery instructions

• Driver under time pressure taking shortcuts

• Lack of recipient verification

• Similar business names in the same industrial estate

How to prevent it:

• Validate addresses at booking (postcode lookup, What3Words or GPS pin for tricky sites)

• Require recipient ID/authorisation for high-value deliveries

• Prohibit “leave safe” without written instruction from the contracting party

• Use photo POD (goods on site + door signage) and capture recipient name clearly

• Implement exception handling: if unsure, driver must call dispatch before unloading

5) Delay and consequential loss claims

What it looks like: Customer claims for missed production slots, spoiled goods, contract penalties, or lost sales due to late delivery.

Common root causes:

• Unrealistic delivery promises

• Poor contingency planning (traffic, ferry delays, driver hours)

• Lack of temperature-controlled backup for perishable goods

• Weak communication when disruptions occur

How to prevent it:

• Set realistic SLAs and clearly define what is and is not covered (especially consequential loss)

• Use live tracking and proactive ETA updates to customers

• Build contingency into schedules for border delays and peak periods

• For time-critical freight: use premium services, team drivers, or dedicated vehicles

• Record disruption evidence (traffic incidents, port closures, mechanical breakdown reports)

6) Temperature excursion (chilled/frozen goods out of range)

What it looks like: Food, pharmaceuticals, or chemicals are rejected because recorded temperatures went out of specification.

Common root causes:

• Incorrect set point or pre-cool procedure

• Door openings during multi-drop routes

• Faulty reefer unit or poor maintenance

• Inadequate temperature monitoring and record keeping

How to prevent it:

• Standard operating procedures for pre-cool, set points, and loading patterns

• Calibrated temperature probes and continuous data logging

• Preventive maintenance schedules for refrigeration units

• Use insulated curtains and minimise door-open time at drops

• Provide customers with temperature reports to reduce disputes

7) Poor loading/unloading practices (handling damage)

What it looks like: Forklift punctures, dropped pallets, crushed cartons, or goods damaged by clamp trucks.

Common root causes:

• Untrained warehouse staff or agency labour

• Wrong handling equipment for the load

• Rushed cross-dock operations

• Lack of “fragile” or “do not clamp” markings

How to prevent it:

• Handling training and competency checks (including agency staff)

• Clear handling labels and load-specific instructions on paperwork

• Use the right equipment: pallet inverters, soft clamps, lift attachments

• Implement incident reporting and near-miss tracking to fix systemic issues

• Photograph goods before and after handling at each touchpoint

8) Shortage claims (missing cartons, partial delivery)

What it looks like: Customer reports fewer cartons than the delivery note, pallets missing, or seals intact but contents short.

Common root causes:

• Counting errors at pick/pack

• Split shipments not communicated

• Cross-dock mis-sorts

• Poor seal control or tampering

How to prevent it:

• Scan-based chain of custody (barcode scanning at each handover)

• Use tamper-evident seals and record seal numbers on paperwork

• Reconcile counts at collection and delivery (driver checks, not just warehouse)

• Mark split shipments clearly and communicate ETAs for remaining items

• Investigate recurring shortage lanes or depots and tighten controls

9) Documentation and customs errors (international freight)

What it looks like: Goods held at border, fines, storage charges, or claims for missed delivery windows due to paperwork issues.

Common root causes:

• Incorrect commodity codes, values, or origin statements

• Missing export declarations or safety/security filings

• Incomplete CMR notes or incorrect consignee details

• Poor coordination between shipper, forwarder, and haulier

How to prevent it:

• Use a pre-shipment documentation checklist (HS codes, invoices, packing lists, licences)

• Confirm Incoterms and who is responsible for clearance and duties

• Train staff on post-Brexit UK/EU requirements and keep templates updated

• Build a “document verification” step before the vehicle departs

• Keep digital copies accessible to drivers and operations teams

10) Contract and liability disputes (terms, limits, exclusions)

What it looks like: A claim escalates because parties disagree on who contracted whom, what terms apply, or whether liability is limited.

Common root causes:

• No signed contract or unclear terms of business

• Conflicting terms (shipper terms vs carrier terms)

• Failure to declare high-value goods or special handling

• Subcontracting without back-to-back terms

How to prevent it:

• Use clear written terms and conditions and ensure they are incorporated into every job

• Confirm liability regimes (e.g., CMR) and any limits in writing at booking

• Require declared values and special instructions for high-value or fragile freight

• Use back-to-back contracts with subcontractors and verify their insurance

• Keep a clean audit trail: booking confirmation, emails, PODs, photos, and incident reports

A simple freight claim prevention checklist (quick win)

If you want a practical starting point, implement these 10 controls across your operation:

• Pre-collection photo and condition check

• Seal number logging and verification

• Load restraint standards (documented and trained)

• Approved secure parking policy

• Photo POD and recipient verification

• Scan-based handover tracking

• Temperature monitoring (where relevant)

• Depot storage segregation for sensitive goods

• Documentation checklist for international moves

• Written terms of business and back-to-back subcontractor terms

When prevention fails: what to do immediately after an incident

Fast, consistent action reduces the size of the claim and strengthens your defence.

• Secure the scene and prevent further loss (salvage where possible)

• Take photos and collect statements while details are fresh

• Preserve evidence: seals, packaging, damaged goods, temperature logs, telematics

• Notify the customer quickly with clear facts (avoid speculation)

• Notify insurers promptly and follow their claims guidance

FAQs

Are freight liability claims the same as cargo insurance claims?

Not always. Freight liability is typically about a carrier’s legal liability for loss or damage under a contract or convention. Cargo insurance is usually purchased to protect the cargo owner regardless of fault (subject to policy terms).

Does CMR apply to all road freight?

CMR generally applies to international carriage of goods by road when the place of taking over and the place of delivery are in different countries and at least one is a CMR contracting state. Domestic UK road carriage is usually governed by contract terms.

Can a customer claim for consequential loss if a delivery is late?

They can try, but whether it succeeds depends on the contract terms, the applicable law, and whether consequential loss is excluded or limited. Clear terms and realistic service promises help reduce disputes.

What evidence helps defend a freight claim?

Photos at collection and delivery, seal logs, PODs, telematics, temperature records, handling notes, and a clear audit trail of communications are all valuable.

How can I reduce theft risk on high-value loads?

Use approved secure parking, tracking/geofencing, strict stop policies, seal control, and limit who can see load details. Physical security at yards and depots is equally important.

Final thoughts

Freight liability claims are rarely “bad luck”. They are usually the result of preventable process gaps: weak packaging standards, poor chain-of-custody controls, unclear delivery procedures, or unclear contracts.

If you tighten your operational controls and keep better evidence, you reduce both the frequency of claims and the cost of disputes when something does go wrong.

If you’d like, tell me what type of freight you handle (UK-only vs international, general haulage vs temperature-controlled, typical load values), and I can tailor this into a version that matches your services and the cover you offer as a broker.