By Luis Lopez, AI transportation consultant, CEO of Go Hub.io Holdings Corp and subsidiaries, and host of the Freight Guru Podcast
A shortage claim usually begins with a simple sentence: the receiver says 40 cartons were expected and 38 arrived. What follows is rarely simple. The shipper says it loaded 40. The carrier says it delivered what it picked up. The consignee says it received 38. Somebody lost two cartons, and the question is who.
This article looks at how shortage claims are generally evaluated, which records matter most, and how to build a file that makes your position clear. It is general information, not legal advice. Contract terms, applicable law and the facts of each shipment all affect the outcome, so confirm your rights with your contract and with counsel.
Why Shortages Are Hard to Prove
Damage claims come with physical evidence: a crushed carton, a leaking drum, a photo. A shortage is proof of absence. You are trying to show that something that should have been there was not there, and then show at which point in the chain it disappeared. The shipment may have passed through a shipper’s dock, a driver’s trailer, a carrier terminal, another trailer and a receiver’s dock.
That is why shortage cases turn on documentation more than on argument. Whoever can show a clear count at a clear point in time, supported by signed records, is usually in the stronger position.
The Burden of Proof: A Cautious Overview
For many interstate shipments, cargo claims against motor carriers are governed by a federal framework often called the Carmack Amendment. Generally, under that framework, the party making the claim must show three things: that the goods were delivered to the carrier in good condition, that they arrived in damaged condition or were not delivered, and the amount of the loss. If that showing is made, the carrier is generally presumed to be responsible unless it can prove that it was not at fault and that the loss resulted from one of a small group of recognized causes. Our article on the Carmack Amendment explains the framework in more detail.
For a shortage, the first element is the critical one. The claimant has to show that the full quantity was tendered to the carrier. This is where the shipper’s records matter. A claimant who cannot prove how many pieces went onto the truck will struggle to prove how many did not come off.
Do not treat this as a full statement of the law. Whether the framework applies, how contract terms modify liability, and what limits and notice requirements exist all depend on the specifics. Check your contract, the bill of lading and the carrier’s rules, and speak with counsel before relying on any general summary.
Piece Counts: The Foundation
A good shipper record includes:
- The number of cartons, pieces and pallets, stated on the bill of lading.
- A packing list that matches the bill of lading and shows the count per pallet.
- Evidence the count was verified at loading, such as a signed loading tally, scan records or a photographed load.
- The time of loading and the name of the person who counted.
If the bill of lading says 10 pallets and the packing list totals 10 pallets and the tally agrees, you have a consistent paper trail. If the documents disagree with each other, expect the carrier to raise the inconsistency.
Shrink-Wrapped Pallets and “Said to Contain”
Many shortages involve palletized freight where the carrier cannot see inside. A driver who picks up a shrink-wrapped pallet can count the pallet, but cannot count the cartons stacked inside the wrap. That is why bills of lading sometimes carry language such as “said to contain” or “shipper’s load and count.” The practical meaning is that the carrier is acknowledging receipt of a sealed or wrapped unit without verifying what is inside it.
When that language appears, the carrier will generally argue that the shipper bears the risk of any miscount inside the unit. The shipper then has to rely on its own internal records to prove what was loaded. Whether the notation changes who bears the burden depends on the facts and the law that applies, so do not assume it either way. For related background, see our piece on shipper’s load and count liability.
From a practice standpoint, the lesson is simple. If you ship wrapped pallets, build proof of contents into your process: photographs before wrapping, carton counts per layer, and labels that show piece totals on the outside.
Seal Records
For full trailers and containers, the seal is a key piece of evidence. A seal number recorded on the bill of lading at loading should match the seal number at delivery. Those two facts support two different conclusions.
- Seal intact and matching: This suggests the trailer was not opened between loading and delivery. If the receiver finds a shortage, that points back toward the count at loading or toward a problem before sealing.
- Seal broken, missing or a different number: This suggests the trailer may have been opened in transit, which points toward possible loss during carriage and can raise further questions that you should discuss with counsel.
Record the seal number at origin, photograph it, and have the receiver check and photograph it again at delivery before opening the doors. A seal checked after the doors are open proves very little.
Clean Versus Excepted Delivery Receipts
The delivery receipt is often the most important single document in a shortage claim. When the receiver signs without noting any problem, the receipt is generally called clean. A clean receipt gives the carrier an argument that the full shipment was delivered, and it can make a later shortage claim harder to win.
When the receiver notes the problem on the receipt, for example “2 cartons short” or “pallet count 9 of 10,” the receipt is generally called excepted. That note creates contemporaneous evidence that the shortage was identified at delivery and not invented later.
The habit to build is this: count at the dock before signing, and write the exception on the carrier’s copy and your own. Be specific. “Shortage” alone is weaker than “received 38 of 40 cartons per count.” If the driver will not wait, note that too. Concealed shortages found after the driver leaves are handled differently and are usually harder, a theme we cover in our article on concealed damage claims.
Evidence to Gather
- The bill of lading, including any notations such as seal numbers or “said to contain.”
- The packing list and commercial invoice showing quantity and value.
- Origin loading tally, scan data or photographs.
- Seal numbers recorded at origin and at delivery, with photos.
- The signed delivery receipt, with any exceptions written on it.
- Receiver’s count sheet, receiving photos and the time of delivery.
- Carrier tracking events, terminal scans and any trailer transfer records.
- Correspondence with the carrier, the receiver and the shipper about the discrepancy.
- Documents proving the value of the missing goods.
Written notice of the claim should be given promptly. Time limits for filing can be short and can be set by contract, so read the bill of lading terms and consult counsel on deadlines. Our guide on how to file a freight claim that actually gets paid walks through the filing process itself.
The central point is that shortage liability is rarely decided by who tells the better story. It is decided by who has the better record of the count, the seal and the signature. Build those records before you need them.
If you want more practical freight risk and claims coverage, subscribe to the Freight Guru Podcast.
About the author: Luis Lopez is a Miami-based AI transportation consultant and logistics entrepreneur, the CEO of Go Hub.io Holdings Corp and subsidiaries, and host of the Freight Guru Podcast.
This article is general information for the freight community, not legal advice. Talk to a transportation attorney about your specific situation.
