How Building Materials Distributors Can Reduce Freight Claims And Disputes

Apr 10, 2025

Freight claims and disputes are a costly headache for shippers, carriers, and third-party logistics (3PL) providers, regardless of the industry. Whether companies are dealing with claims due to damage or late deliveries, customer satisfaction, operational efficiency, and profitability suffer.

For instance, a 2024 study of transportation decision-makers in different industries found that shippers reported an average less-than-truckload (LTL) damage rate of 1.94% in 2023 at an average claims cost of $3,777 per shipment, with larger shippers incurring up to $6.3M in annual claims for damaged, lost, and late freight.

The Construction Factor

While the bottom-line and reputational costs of freight claims and disputes are felt across the wider transportation landscape, the construction industry is particularly vulnerable. Unlike suppliers transporting uniform-size cartons of widgets for ecommerce fulfillment, for example, building materials distributors face specific challenges delivering to job sites:

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