Concealed Damage

What is Concealed Damage?

Concealed damage is any loss or damage to freight that is not noticeable during a standard inspection at the time of delivery. The exterior of the package looks intact, so the recipient signs the proof of delivery (POD) without noting any issues. The problem is only found later, after the package has been opened.

This type of damage is a common issue for anyone involved in shipping, from a small e-commerce store to a major third-party logistics (3PL) provider.

What Causes Concealed Damage?

Most concealed damage occurs sometime during transit. The journey from the warehouse to the customer's doorstep involves multiple touchpoints, and something can go wrong at any stage. Common causes include:

• Inadequate Packaging: This is one of the most frequent culprits. If items are not properly secured with sufficient cushioning, they can shift, collide, or break inside the box. Inadequate packaging can lead to freight damage even under normal handling conditions.
• Improper Handling: Packages might be dropped, stacked incorrectly, or subjected to rough handling during loading and unloading. Even with the best intentions, the sheer volume of goods moving through distribution centres means not every package is treated with care.
• Vibrations and Shocks: The constant movement of a truck, ship, or plane can cause vibrations that damage sensitive items over time. Sudden stops or bumps in the road can also lead to impact damage that isn't visible from the outside.

How to Handle a Concealed Damage Claim

Discovering concealed damage kicks off a claims process that can be tricky to navigate. Because the damage wasn't noted on the initial bill of lading or proof of delivery, proving when and how the damage occurred is challenging. Here’s a general guide to managing the situation:

1. Act Quickly

Most carriers have a strict window for reporting concealed damage, often within five to fifteen days of delivery. The clock starts ticking the moment the package is received, so it’s vital to encourage recipients to inspect their goods as soon as possible. If a customer reports an issue, you need to act fast.

2. Document Everything

Evidence is your best friend in the freight claims process. As soon as the damage is reported, collect as much documentation as possible. This includes:

• Photos of the damaged item.
• Photos of the interior and exterior packaging.
• A copy of the bill of lading and signed proof of delivery.
• The original invoice for the goods.

The more evidence you have, the stronger your case will be when you file a claim.

3. File the Claim

Once you have your evidence, you need to formally file a claim with the carrier. The concealed damage claim should detail the type of damage, the value of the goods, and all supporting documentation. Be prepared for a back-and-forth conversation, as the carrier will investigate to determine liability. The outcome often depends on the carrier's policies and the evidence provided.

How Geo2 Helps Prevent and Manage Concealed Damage

Dealing with concealed damage is tough, but having the right tools makes a huge difference. Geo2 is designed to give you the visibility and documentation you need to protect yourself and resolve issues quickly.

Our electronic proof of delivery (POD) feature is a game-changer. With Geo2, drivers can do more than just get a signature. They can:

• Capture Multiple Photos: Take pictures of the package from every angle at the point of delivery. This provides a clear record of its condition before the customer accepts it.
• Record Detailed Notes: Drivers can add notes about any potential issues they observe, like a slightly crushed corner or a rattling sound.
• Get Timestamps and GPS Locations: Every POD is automatically stamped with the time and GPS location, creating an undeniable record of when and where the delivery took place.

This detailed documentation provides a safety net. If a customer files a claim days later, you have a comprehensive report showing the package's condition at the time of delivery. This transparency helps your resolution teams act quickly, resolve disputes fairly, and hold the right parties accountable. By encouraging better packaging and careful handling, you can reduce the chances of damage occurring in the first place.

Take Control of Your Deliveries

Concealed damage will always be a risk in the logistics world, but you don’t have to face it unprepared. By understanding the causes and having a clear process for handling claims, you can minimise its impact. With tools like Geo2, you can build a stronger, more accountable delivery operation.

Want to see how Geo2 can help you reduce freight claims and improve customer satisfaction? Learn more about our proof of delivery features today.