Salvage (Freight)

Freight salvage is what happens after the damage is done. When a shipment is refused, a load arrives damaged, or product is deemed unsalable through normal channels, the shipper or insurer must decide what to do with the remaining goods. Salvage is the process of extracting whatever residual value is possible – whether that means selling the product at a deep discount through a salvage buyer, donating it for a tax write-off, repurposing it, or disposing of it properly when no other option exists.

The salvage process intersects directly with freight claims. When a carrier is liable for damaged goods, the claimant has a legal duty to mitigate losses – meaning you can't simply abandon the freight and claim full value. You're expected to make a reasonable effort to recover what you can through salvage. The net claim amount is then the original value minus whatever salvage value was recovered. Carriers and insurers may request the right to participate in the salvage process or arrange their own salvage disposition, and this is typically addressed in the carrier contract or claims settlement terms.

For food and beverage shippers, salvage decisions are complicated by product shelf life, food safety regulations, and cold chain integrity. A pallet of damaged but still food-safe product might be salvageable through a discount grocery channel or food bank donation. But product that has experienced a temperature excursion may need to be destroyed entirely – and disposal of perishable goods carries its own costs, including proper waste handling and documentation for regulatory compliance. The salvage decision often needs to be made quickly, before perishable product deteriorates further and the remaining options narrow.

Maintaining clear records throughout the salvage process – including photos of the damaged goods, salvage offers received, final disposition, and associated costs – is essential for supporting the freight claim and demonstrating that you fulfilled your duty to mitigate.