Claims Ratio

Claims ratio measures how frequently a carrier's shipments result in a formal freight claim. It's calculated as the number of claims filed divided by total shipments over a period, expressed as a percentage. A carrier handling 1,000 shipments per quarter with 8 claims has a 0.8% claims ratio. While that sounds low, the financial and operational impact of each claim – product replacement, customer credits, administrative time, and relationship damage – means even small percentages matter.

Claims typically arise from cargo damage during transit, product loss or theft, temperature excursions on refrigerated loads, and shortages where delivered quantity doesn't match the bill of lading. In cold chain and food & beverage, claims carry extra weight because damaged product often can't be salvaged – a temperature-abused pallet of frozen meals is a total loss, not a discounted sale. The claims ratio for temperature-sensitive freight is one of the most closely watched carrier quality metrics in the industry.

A rising claims ratio from a specific carrier signals a systemic problem – aging equipment, poor driver training, inadequate load securement, or reefer maintenance issues. Shippers who track claims ratio at the carrier level can address these issues directly in quarterly business reviews, set improvement targets, and escalate to routing guide consequences if performance doesn't improve. Carriers who know their claims ratio is visible and tied to their volume allocation tend to take corrective action faster.

Claims ratio is most useful when paired with OSD tracking at the point of receipt. The sooner overages, shortages, and damages are documented – ideally at delivery with photos and notes – the stronger the shipper's position in the claims process and the cleaner the data feeding the ratio calculation.