How Atlas Logistics Cut Claims by 41% for a Major LTL Shipper
How Atlas Logistics Cut Claims by 41% for a Major LTL Shipper
A high-volume equipment manufacturing company shipping over 6,000 LTL (less-than-truckload) shipments annually faced escalating freight damage claims, inconsistent packaging practices, and limited visibility into root causes. Partnering with Atlas Logistics®, the company implemented a structured, data-driven approach to packaging optimization, claims management, and performance review.
Through standardized packaging protocols, improved documentation, and ongoing operational oversight, the manufacturer reduced its claims ratio from a peak of approximately 1.7% to under 1%, improved claim recovery rates, and enhanced overall delivery reliability.
About the Client
The client is a large kitchen equipment manufacturing company specializing in durable, stainless-steel products, that ships more than 6,000 LTL (less-than-truckload) shipments annually. The company works in a high-volume, high-risk freight environment.
Due to the size, weight, and material of its products, shipments are particularly susceptible to damage during multi-touch LTL handling. Protecting product integrity while maintaining cost efficiency is critical to both operational performance and customer experience.
A Closer Look at the Problem
From 2022 to 2024, the manufacturer experienced an elevated volume of freight claims across its LTL shipments, creating both financial and operational impacts. Without the consistent documentation and a centralized approach to these claims, the client lacked the information needed to drive meaningful improvement or prevent recurring issues.
About the Client
When we met with our future client, we saw an opportunity to help them gain a competitive edge in their industry. Our client values competitive pricing and back-office support as well as national sales support, and we believed that by bringing our logistics approach to this company, we could give them the tools to allow these qualities to stand out even more amongst other industry leaders.
How Atlas Logistics Responded
Atlas Logistics approached the challenge as a consultative logistics partner by focusing on finding and addressing the underlying causes of performance gaps.
Identifying Root Causes
Through detailed claims analysis, on-site packaging audits, and visual inspection of damaged freight, several key issues were found:
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Improper crate construction
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Weak structural builds and inconsistent screw patterns
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- Ineffective palletization
- Over stacking and uneven weight distribution leading to instability
- Over stacking and uneven weight distribution leading to instability
- Incorrect labeling practices
- Misuse of handling labels such as "stack on" instead of "top freight only"
- Limited documentation
- No pre-shipment photography to evidence freight condition at origin
These issues collectively increased both damage risk and claim denial rates.
Implementing a Structured Strategy
To address these challenges, Atlas Logistics introduced a multi-phase improvement plan, including:
1. Packaging Standardization
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Advised upon crate recommendations aligning with NMFTA guidelines
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Established clear standards for materials, reinforcement, and load distribution
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Created repeatable processes across all shipping operations
- Introduced mandatory photo capture prior to pickup to enable stronger evidence for claims and clearer liability determination.
- Implemented a 45-day performance cycle
2. Pre-Shipment Photo Documentation
3. More Frequent Performance Reviews
Execution in Practice
The initiative combined on-site visits with virtual claim reviews, allowing teams to:- Analyze real-world damage scenarios using photographic evidence
- Distinguish between carrier-related and warehouse-related issues
- Continuously refine processes based on data insights
This hybrid approach ensured both strategic oversight and hands-on execution.
The Results
By 2024, the company achieved measurable improvements across key performance metrics:
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- Increased claim win rates due to stronger documentation
- Reduced frequency and severity of damage incidents
- Faster claims resolution cycle
Business Impact
- Improved claims and customer experience
- Reduced costs associated with damage, rework, and delays
Conclusion
This case shows how a disciplined and strategic approach to logistics can significantly improve LTL shipping performance. By standardizing packaging practices and aligning them with established industry guidelines, the company reduced variability and minimized opportunities for damage. The introduction of pre-shipment photo documentation strengthened accountability and provided evidence needed to improve claim outcomes. More frequent performance reviews created a consistent feedback loop, allowing issues to be identified and addressed before they escalated.
Atlas took a consultative approach, working with the client to find root causes and implement practical solutions that reduced claims, lowered costs, and improved delivery reliability. This model is scalable for other high-volume LTL shippers, especially those focused on packaging consistency, strong documentation, and ongoing performance monitoring