Claim Drain: Don't Let Your Internal Resources Go to Waste [VIDEO]

ClaimDrainHeaderResolving a cargo claim is a complex process that can require specialized knowledge in order to successfully get a recovery from a carrier. However, even when employees are armed with the right tools and knowledge, many underestimate the sheer amount of time this process takes.

Take a look at our video for a quick rundown of the cargo claims process: 

 

Let's go over some basics: 

  • The average cargo claim takes 65 days to resolve.
  • The most complex claims, including those with international shipments, disputed
    liability, or unresponsive carriers, can take much longer.
  • The first duty of a carrier’s claims department is to deny claims, and lack of
    response from the claimant is the most common reason for denial

Read how you could benefit from a cargo claims management program.

A typical cargo claim follows this path: 

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If your employee spent only 15 minutes per item in the list above, that’s already 3.5 hours per claim. And if there are complications or additional back-and-forth, that time could easily multiply.

The average cargo claim takes 65 days to resolve. While that claim is winding its way toward completion, more claims occur.

Take a sample company who files 5 cargo claims per week. For the first week, the drain on resources is minimal: 2-3 hours to gather all the information and file the claims. But at the end of that 65-day window, over 9 additional weeks will have passed, meaning 45 additional claims.

On week 10 (and every subsequent week), that internal resource will have an average of 50 claims at various stages in the process. At an optimistic 3.5 hours per claim, that’s 175 hours every 10 weeks, or half a full-time person.

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So, how can we help?

ECIB has a specialized system for tracking claims data and ensuring rigorous followups with carriers. Not only that, but we have knowledgeable staff trained in legal liability rules and the up-to-date intel for getting carriers to pay what is contractually owed. 

If you're interested in learning more about a claims management program, don't hesitate to reach out to us!  

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