GlossaryEN1 min readUpdated: Jun 23, 2026
Compensation for Freight Damage
A shipment arrives visibly damaged and the goods are unsaleable — the consignee seeks compensation for freight damage.
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Source: https://www.freightwaves.com/glossary/freight-claim
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A shipment arrives visibly damaged and the goods are unsaleable — the consignee seeks compensation for freight damage. This is the monetary recovery that a carrier, freight forwarder, or transport insurer pays to offset the proven loss in value of goods damaged or destroyed during carriage. Three conditions apply: documented evidence of the damage, a demonstrable causal link to the transport operation, and timely notification to the liable party within contractual or statutory deadlines. The recoverable amount reflects the actual value of the goods but is typically capped by international liability conventions or contract terms — the Montreal Convention governs air cargo claims, and the CMR applies to international road transport. This term should not be confused with the broader category of transport damage compensation, which may also cover delay-related losses and indirect consequential costs.
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