"Rejected freight" is a phrase no shipper ever wants to hear. For small and mid-sized businesses (SMBs), rejected freight is an unwanted and unwelcome proposition, and it's equally painful for the recipient and the carrier as well.
Unfortunately, while freight rejection rates are fairly low, refused loads do happen. At the end of 2023, the rate of U.S. freight rejections was about 4% for non-perishable shipments and nearly 9% for refrigerated freight.1
So what should you do if your less-than-truckload (LTL) or full truckload (FTL) shipping gets rejected? First of all: don't panic! We'll walk you through the most likely reasons your freight might be rejected, as well as how to effectively and efficiently respond.
Reasons freight can be rejected
There are lots of reasons a consignee may decide to reject a freight delivery. These include:
- Errors or discrepancies on the bill of lading (BOL)
- Damaged goods
- Freight that shifted in transit and may be unsafe to unload
- Temperature-sensitive freight deviations
- Delivery that is late or unscheduled
- An excessive or short number of the expected goods
- Unprepared recipients
- A broken trailer seal
Regardless of the reason your freight was rejected, the most urgent items to address are determining who is at fault and then taking the necessary steps to resolve the issue. Once that's taken care of, you can then put practices in place to avoid future rejections.
Determine who is at fault for the rejected freight
The first thing to do is assess the situation by learning as much as you can from the consignee and carrier about why the freight was rejected in the first place. Knowing the reason will help you address the problem effectively and understand who's responsible.
What to do if the carrier is at fault
If the carrier missed their delivery commitment, or photographic evidence proves the freight is in a different condition from when it left your facility, then it's likely the carrier is at fault.
If this is the case, you should do the following:
- Request an explanation: If the freight rejection was due to carrier error, ask for a detailed explanation of what went wrong. Understanding their perspective can help you navigate the situation more effectively.
- Manage the freight: Regardless of how the matter of responsibility is settled, something still needs to be done with the cargo itself. We'll explore a few different options for dealing with the shipment below.
- Review contract terms: Carefully check through your shipping contract to make sure the carrier is indeed at fault according to the agreement. Specifically, check for any clauses related to freight rejections and/or liability.
- Seek compensation: If the carrier is responsible for the rejection, you'll want them to reimburse you for the failed delivery, plus any additional costs incurred as a result. This could include reshipping fees, storage charges or dwell times. You'll likely want to file a claim to settle the matter. For better protection of your valuable shipments, consider shipping insurance through a third-party logistics provider like GlobalTranz. Carrier liability limits differ and often fall short, making shipping insurance a cost-effective solution for safeguarding your freight.
- Consider alternative carriers: If this isn't the first issue you've had with this carrier, it might be time to explore other options. Look for a reliable carrier with a track record of handling freight efficiently and professionally. A third-party logistics (3PL) provider like Worldwide Express can connect you with a vast network of vetted carriers and can help you communicate with them in the event of any issues.
What to do if you're at fault
The steps you take to deal with a refused load will be different if you determine that you're at fault. For example, if you made errors in documentation or in the contents of the shipment itself, the rejection is likely your responsibility.
If you determine that you or your team are at fault for the freight rejection, you should:
- Communicate with your customer and the carrier: Immediately contacting your customer and apologizing is vital to your relationship. Tell them you're determined to fix the situation, tell them exactly what steps you'll be taking to fix it and explain how you will ensure that it never happens again. You should also reach out to the carrier promptly to discuss the rejection. Be honest about any mistakes on your end and inquire about their specific requirements for accepting the freight.
- Manage the freight: Once you've identified the problem, take immediate action to rectify it. Full details on managing the freight are in the following section.
- Follow up with your customer: Thoroughly communicating throughout the process and ensuring that the situation is fully resolved can help regain trust and confidence and increase your chances of retaining the customer. Clear communication and follow-through can turn a bad situation into much better one.
- Conduct a "post-mortem": Once the immediate situation has been resolved, it's important to identify what went wrong on your end and make any necessary adjustments to prevent the same mistake from happening again. Again, it's worth exploring whether a 3PL could help you streamline your shipping processes and minimize potential missteps.
How to manage rejected freight
Regardless of who was at fault, there are several ways to deal with a refused load. Carefully weigh your options to decide what will be best for your customer and help you recoup as much money as possible — or at least keep extra costs to a minimum.
Possible management methods include:
- Negotiating: If the shipment is incomplete or incorrect but does contain some of the expected goods, can you get the recipient to accept it with a discount?
- Reworking: Whether it's correcting labeling issues, updating documentation or repackaging the freight, make sure everything follows carrier guidelines and recipient requirements. Keep in mind that you'll likely need to pay to hire lumpers (freight handling specialists) to help resolve the shipment problem, either by fixing packaging, restacking freight, addressing labeling errors or handling damaged goods.
- Rescheduling: If the rejection was due to timing issues for the recipient, you could possibly arrange a new delivery window. Double-check that everything is in order this time to prevent another rejection. You may also need to find somewhere to store the load temporarily until it's time to re-deliver it.
- Disposal: If there's no way to get the recipient to accept the freight, you'll need to figure out what else to do with it. Each of these solutions will likely mean extra costs, but are better than being stuck with unwanted, rejected freight. Your disposal options include:
- Shipping back to origin: The carrier can bring the shipment back to your location so you can return the goods to your inventory for reselling or recycling.
- Shipping somewhere else: You may be able to find another customer to take the unwanted goods.
- Disposal of the load: If all else fails, the shipment may need to be disposed of — either by donating it somewhere, recycling the materials or sending the items to a landfill.
Optimize your shipping with GlobalTranz to minimize rejected freight
While occasional freight rejections are a reality of the shipping world, being informed and handling them in the best possible way can lead to a better experience for you, the carrier and your customer. Staying calm, addressing the issue promptly and following the preceding tips will go a long way. You can also use the rejection as an opportunity to improve your shipping practices for future customers.
For the best possible support for all aspects of your LTL and FTL freight shipping, there's no substitute for partnering with a 3PL like GlobalTranz. We've helped tens of thousands of shippers just like yours minimize their rejected freight and improve their overall shipping operations. Request a custom shipping consultation today!
1 Arrivelogistics.com (2023). Freight Market Update – November 2023