Concealed damage claims: what to do when damage shows up later

Visible damage vs concealed damage

What to do in the first hours

1. Stop unpacking. Leave the goods and packaging as they are, as far as is safe. Every further move makes the scene less convincing.
2. Photograph in layers. The outer carton or pallet from all sides, the labels, the inner packaging, the damaged item, and any sign that points to cause, such as a puncture that lines up through each layer.
3. Notify the carrier in writing. Give the bill of lading and PRO number, the date of delivery, when the damage was found and a short description. Ask for an inspection.
4. Keep everything. Packaging, dunnage, pallets and damaged goods, until the carrier has inspected or waived inspection in writing.
5. Record who found it. Name, time, location in the building and what they were doing. This becomes part of your OS&D report.

How quickly is "promptly"?

There is no single federal notice period for concealed damage on US truck shipments. Carrier tariffs and industry practice commonly ask for notice within a short window after delivery, often measured in days, and the carrier may treat later reports with more skepticism. The formal claim deadline is separate: under the Carmack Amendment a carrier cannot set less than 9 months for filing a claim (see the freight claim process). Missing the short inspection window does not necessarily end a claim, but it makes it harder to prove.

International shipments are different. Under the Montreal Convention, damage to air cargo must be notified within 14 days of receipt; the CMR Convention for road carriage allows 7 days (excluding Sundays and public holidays) for damage that was not apparent; under the Hague-Visby Rules, notice of non-apparent damage is due within 3 days. The disputes guide has the full table.

Evidence that answers "did it happen in transit?"

• Packaging damage that matches product damage. A gouge through the carton that lines up with the break inside is strong evidence. A pristine carton around a broken item points elsewhere, such as packing or manufacturing.
• Condition at pickup. Photos, a clean bill of lading and packing records show how the goods left. See chain of custody for what to capture at collection.
• Handling records. Terminal transfers, re-weighs, re-palletizing and cross-docks noted by the carrier.
• Shock or tilt indicators and data loggers, if fitted, with readings tied to times and locations.
• Seal and trailer condition at delivery for a full truckload.
• The consignee's handling after delivery. Where the goods sat, and who moved them, between signing and discovery. A short, documented gap helps.

Reducing concealed damage disputes

The most effective step is to make inspection at delivery easier, so less damage is concealed in the first place.

• Train receivers to look for crushed corners, punctures, wet spots, re-taped cartons and leaning pallets, and to note them even when the contents look fine.
• Where time allows, open suspicious cartons before the driver leaves and note "subject to inspection" only if your carrier's terms give that wording any weight; a specific exception is better.
• Photograph every inbound pallet as it comes off the trailer. A timestamped photo at the dock is the easiest evidence to collect and the hardest to recreate.
• Set a rule that inbound freight is unpacked and checked within a fixed time.
• Review packaging with suppliers when the same item keeps arriving damaged.

Concealed damage notice template

Send the notice first, then follow with a formal claim that states an amount once you know it.

Who bears concealed damage?

There is no automatic answer. If the evidence shows the damage happened while the carrier had the goods, the carrier is generally responsible under the contract and law that apply, subject to any limitation of liability. If it points to poor packing by the shipper, or to handling after delivery, the claim is likely to fail against the carrier. Shippers and consignees sometimes agree between themselves who pursues the claim and who carries the loss if it fails; settle that in the sales or supply terms rather than after the event.

Common questions

What is concealed damage in freight?

Damage that could not reasonably be seen when the shipment was delivered and signed for, typically because the outer packaging looked intact. It is discovered later, usually when the goods are unpacked.

Can I still claim if I signed the delivery receipt clean?

Often yes, for concealed damage, but the burden of showing that the damage happened in transit is heavier. Prompt notice, an inspection request and good photos matter most.

Should I throw away the damaged packaging?

No. Keep it until the carrier has inspected or confirmed in writing that it does not need to. Packaging is often the best evidence of how the damage happened.

Does the carrier have to inspect?

Carrier practices vary. Some inspect, some waive inspection and ask for photos. Ask in writing, and keep the reply with the claim file.