11 Steps to Avoid Lost Freight When Shifting Goods

What's in this article?

What Is Freight Loss?
Steps to Avoid Lost Freight When Shifting Goods
Ensure packaging is proper
Label clearly
Fasten and secure goods well
Double-check everything
Review cost and benefits
Choose the suitable carrier
Interact with the carrier
Retain shipping documentation
Follow freight security procedures
Utilize security solutions
Enable tracking
Conclusion

11 Steps to Avoid Lost Freight When Shifting Goods

Freight involves moving goods from point A to point B, but sometimes cargo gets lost along the way. This can happen because of bad planning, poor communication, and human error.

Freight loss is a massive problem for logistics companies. It can cause customers to lose trust and move to a competitor, creating reputation damage and increased expenses for settling claims. But there are ways to prevent lost freight.

We have listed 11 steps to help you avoid lost freight when shifting. These tips will increase the chances of every shipment arriving safely and on time, saving you money!

What Is Freight Loss?

A freight loss means a carrier's partial or complete loss of a customer's shipment. This raises the opportunity for the customer to submit a loss claim, which will cost money to the carrier.

11 Steps to Avoid Lost Freight When Shifting Goods

Here are eleven steps to follow to guarantee that there are no lost items during the shipping process.

1. Ensure packaging is proper

This means ensuring the freight's packaging is done correctly to prevent any damage to its exterior, such as choosing a crate or box for the goods to be packed in or chains or straps if the freight good is enormous, like an automotive.

When packaging is improper, damage can happen during transit and shifting of freight goods, which could cause a tear to the exterior packaging.

When this happens, multiple items are packed, and the times can fall out of their packaging or get stolen.

For instance, boxes come in many shapes and sizes, including corrugated cardboard boxes and rigid foam blocks. Each material offers certain advantages and disadvantages, depending on what you're trying to ship.

Corrugated cardboard boxes are lightweight and inexpensive but don't offer much protection against damage. On the other hand, rigid foam blocks provide excellent protection, but they weigh a lot and require a truck to transport.

2. Label clearly

Labeling the freight goods properly is an absolute must whether a shipment is made domestically or internationally.

This means that every freight will come with at least the following information:

Sender's name, phone number, and email address
Origin address
Recipient's name, phone number, and email address
Destination address
Description of content
Special instructions
Tracking number
Barcode or QR code

3. Fasten and secure goods well

Fastening and securing goods is an additional layer of security to packing the goods.

Wrapping materials include shrinking wrap, stretch film, bubble wrap, tape, and strapping.

Shrink wrap is usually used for small packages, while stretch film is ideal for larger ones.

Bubble wrap provides a safety layer for fragile goods like electronics, jewelry, and artwork. The tape helps secure boxes together, and strapping is often used for pallets.

All of these wrapping options have their pros and cons. Still, they're accommodating for protecting large items like furniture, appliances, and vehicles and preventing them from getting lost in transit.

4. Double-check everything

Once everything has been packed, labeled, and secured correctly, double-check! Typically using a checklist can help when confirming whether everything is in order.

5. Review cost and benefits

Looking for ways to move cargo through backed-up major ports comes with its own cost and benefits.

For example, some businesses have invested in their dedicated fleet of vehicles and vessels so they wouldn't need to rely on third parties for shipping.

Some businesses are alright about spending the extra money to have their cargo rerouted through ports that are uncongested but further away.

Considering where to have the freight goods shipped and passed through is vital, as congested ports or roads have a higher risk of goods being lost during shifting.

Therefore, review the costs and benefits of whether to select a route that is further and safer but incurs more cost and time.

6. Choose the suitable carrier

The Federal Motor Carrier Safety Administration (FMCSA) recently launched the "Safety Score," a tool designed to help consumers make better decisions about hiring a trucking company.

The score is based on data collected by the agency on each carrier's safety record.

According to the FMCSA, the Safety Score is calculated using information gathered from:

the National Highway Traffic Safety Administration (NHTSA)
the American Trucking Association (ATA)
the Federal Motor Carriers Safety Administration (FMCS)
the Bureau of Transportation Statistics (BTS)

The scores can be from 0 to 100; zero indicates the lowest level of safety compliance, while 100 represents the highest level of compliance.

The Safety Score is a tool that assists consumers in making good choices when it comes to hiring a trucking company.

A safety score includes the Mileage Report, the Driver Suitability Questionnaire, the Vehicle Inspection Report, the Crash History report, and the Owner/Operator Compliance Review (OOCR).

When consumers use tools like these, they'll be better equipped to select carriers that are more trustworthy and capable of ensuring their freight arrives safe and sound.

As a shipping company, it is essential to be a suitable carrier and achieve a high Safety Score.

7. Interact with the carrier

It is essential, as a customer, to constantly be informed by your carrier on the latest updates of your freight goods.

Nowadays, shippers and carriers can send automated progress updates via email and provide a page on their websites where customers can input their tracking code to view delivery updates online.

Customers would be kept up-to-date on their freight goods by constantly' interacting' with the carrier.

So if any issues arose or goods became lost, there would be a paper trail on where the incident occurred. Shippers and carriers can then be more proactive with their customers in arriving at a resolution.

8. Retain shipping documentation

Shipping documents are essential should there be a need to claim cargo loss.

They contain important information about the shipment.

That information includes the bill of lading, the name of the shipper, the consignee, the date of issue, the number of packages, the weight, where it was sent, how much it cost, what happened to it, etc.

Without supporting documents, shippers and carriers may need to settle higher compensation amounts to the customers who lost their freight goods.

In addition, shipping documents help track shipments.

Keeping all shipping documentation helps avoid confusion while investigating why the goods didn't arrive.

For example, if the original bill of lading is missing, it would be more challenging to determine whether the carrier lost it or someone stole it.

9. Follow freight security procedures

The Federal Motor Carrier Safety Administration (FMCSA) announced new cargo securement requirements on September 27, 2002, which are effective on January 1, 2004, and apply to motor carriers transporting hazardous materials.

The new regulations require that all vehicles transporting hazardous materials be secured to prevent theft or tampering.

Cargo securement devices include chains, locks, bolts, pins, straps, cables, and similar devices. This regulation applies to commercial motor vehicle drivers operating under contract with a carrier.

The new regulations do not affect the types of cargo being transported; instead, it requires that certain precautions be taken to protect the contents of the container.

For example, the driver cannot use a lock that is in non-compliance with federal standards.

Drivers must ensure that cargo containers are appropriately labeled and marked to identify the type of cargo being carried.

Drivers are responsible for securely fastening the cargo to the vehicle.

And finally, drivers must ensure that there is no unauthorized access to the cargo container to prevent negligence or accidental loss of the cargo.

10. Utilize security solutions

In the past, it was difficult to determine what went wrong when cargo became lost or damaged and what came to be of the shipment.

However, these days with technological advancement, we can now benefit from data loggers and sensors, real-time tracking, integrated systems, cloud technology, and supply chain management software to reduce this from happening.

This is especially critical if freight goods have been rerouted to avoid congested ports, where new and unplanned routes can lead to a greater risk of losses.

11. Enable tracking

Last but not least, security solutions can support better tracking of freight goods' movement.

One way is using portable GPS trackers that attach directly to the shipment. These devices work like a watch for the goods, allowing shippers and carriers to monitor where they go and what happens during transit.

Portable GPS trackers help track shipments because they don't require Internet access, making them ideal for use overseas.

They can even pinpoint the location of lost or stolen items. This information can be shared with law enforcement agencies, making it easier to find missing cargo.

Conclusion

To sum up, every carrier and shipper can prevent losing cargo in the midst of shifting by ensuring each freight good has:

been labeled and packed correctly
secured
double-checked to make sure everything was in order and accounted for
has gone through consideration of the ways that would minimize cost and maximize benefits for all parties,

Shippers can also prevent cargo loss by