To: Our Valued Customers
From: John Arizumi – Carrier Hawaii
Subject: Freight Damage Claims
I want to reiterate our freight policy as there are problems arising that are creating confusion .
All of our standard job quotations state that our freight policy is FOB FACTORY FULL FREIGHT ALLOWED WEST COAST, COLLECT BEYOND. On very rare circumstances will we quote otherwise.
“FOB (Free On Board) Factory” means that the consignee (you the customer) takes ownership of the order at the factory dock once it is loaded on the truck and the trucker signs the Bill of Lading saying that he has received the order in the right quantities and in good condition.
“Full Freight Allowed West Coast” means that Carrier Corp. through its contractual agreement with the trucking firm is pre-paying the freight cost for you to the west coast. “Collect Beyond” means that the consignee pays for the freight once it leaves the west coast. Or if we quote the project “Full Freight Allowed to Honolulu or your destination”, Carrier Hawaii will pre-pay the freight beyond the west coast, In any case, all claims for damage or losses once it leaves the factory is still solely the responsibility of the consignee (you the customer).
Carrier Hawaii and Carrier will provide assistance in resolving freight damage or freight loss, but the consignee is responsible for the freight claiming. You can think of it like we are like the service writer at a car dealership. You own the car, but we assist in trying to assess the damage and repair costs. The freight inspector is like an insurance adjuster who makes the decision to repair or replace on behalf of the freight company. You are responsible for paying for the repairs or the replacement and claiming the reimbursement from the freight company.
What this means is that you should not only verify that you received the proper order, but also immediately inspect all the equipment for any damages. Any damages should be reported immediately to the freight company, as the freight company will not honor any claims after a certain the time limit. You have NO recourse if you claim late.
Once the damage is reported, a freight inspector will verify the claim and decide what course of action to take, repair or replace. If it is to be repaired then we usually provide assistance in determining the replacement cost of the parts and the man-hours to repair the unit. Our assistance is also to assure that the repaired unit will still meet the requirements to maintain the standard warranty of the unit. Then the freight damage claim report is given to the freight company for approval. No work should commence until the freight company approves the claim since if it is rejected you will not get reimbursed.
If the freight company approves replacement of the unit, then you would purchase a replacement unit from us, pay us like a normal purchase, and then claim the reimbursement from the freight company. You still own the damaged unit and it is up to you what you want to do with it.
Please keep in mind that the consignee is ultimately responsible for handling claims with the freight company for any damage or loss. This is freight damage or loss, not warranty and Carrier Hawaii is not responsible for this. We only provide assistance.