Are Unfiled Freight Claims Sabotaging Your Sales Efforts?

Most companies are focused on increasing sales.

Increases in sales mean increases in revenue - and increases in revenue mean increases in profit, the thinking goes.

For the sake of argument, suppose that you’re doing an excellent job of increasing sales. All of your efforts in the sales department are paying off.

That’s where many companies end their efforts. But your company takes the next step, and asks the essential question:

Where is the profit from those sales going?

Hopefully not into a pile of freight claim paperwork that isn’t being dealt with.

But, if you’re not filing your freight claims and being reimbursed for freight damages, your hard-earned profits might just be draining into that pile of unfiled claims.

One Little Freight Claim Can Have a BIG Impact

Let’s consider the following example for a $50 freight claim. $50 is a relatively small amount for a freight claim. It may seem easier to simply write off freight claims for this amount. But consider the consequences:


If you have a profit margin of 6%, and you have a freight damage claim for only $50, you need to generate $833 in sales in order to break even on your loss.

If your industry has much lower margins, for example, with a net profit margin of only 2%, you need to generate $2,500 in sales in order to recover the cost of just one $50 loss!

Small Freight Claims Add Up

This raises another question: how many small freight claims are you writing off on a regular basis? Let’s say you write off three $50 freight claims per month and you have a 6% net profit margin.

$50 x 3 = $150/month

$150/month x 12 months = $1,800/year

$1,800 in claims/0.06% net profit margin = $30,000 in sales needed

Therefore, $30,000 in extra sales are needed to recover a few small losses from freight claims that were never filed. And these are only the small freight claims – this doesn’t take into consideration larger freight claims that have been filed but remain unpaid, or freight claims that your team intended to file, but abandoned after they missed the deadline.

So, think twice before you neglect those small freight claims – or worse, lose track of the big ones. If you need an easier way to file and manage your claims, check out MyEZClaim, our online freight claim management tool.