Our shipment arrived short. What do we do now?
Key Takeaways
- Write the exception on the delivery receipt before anyone signs it. A clean signature tells the carrier everything arrived complete and in good condition, and that is hard to undo later.
- Count against the bill of lading, not against the purchase order. The BOL piece count is what the carrier accepted at pickup, so it is the number the carrier is responsible for.
- Overage, shortage and damage are three different problems with three different next steps. Name the right one on the receipt and in the carrier notice.
- Tell the carrier in writing the same day, with the PRO number, the BOL number, the count and photos, and ask whether the missing freight is still at a terminal.
- Federal law sets a floor for claim timing: under 49 U.S.C. 14706, carriers can't give less than nine months to file a claim, or less than two years to sue after a claim is declined.
- Wilson, by Cartage, is an AI logistics agent that generates the BOL with the piece count, requests and files the POD on each load and keeps every carrier message in the shipment's change history.
What should you do when a shipment arrives short?
The truck backs into door 4 at 2:15 in the afternoon. The BOL says 12 pallets. The receiving lead counts 10 on the trailer, and one of those has a crushed corner with cartons leaking packing foam. The driver is in a hurry and holds out the delivery receipt with a pen. The lead has about two minutes to decide what goes on that paper.
When a shipment arrives short, count the freight against the BOL, write the exact shortage and any damage on the delivery receipt before signing, take photos, and notify the carrier in writing the same day. Those four steps protect the shipper's or consignee's right to recover the missing or damaged goods. Everything that happens later, from tracing the missing pallets to filing a claim, depends on what was recorded at the dock.
The reason is simple. The delivery receipt becomes the proof of delivery (POD). Whatever it says is what the carrier will treat as delivered. If it is signed clean, the carrier's position is that 12 pallets arrived in good order. If it says "10 of 12 pallets received, 2 short, 1 pallet damaged, crushed corner, cartons open," the carrier has an open exception it must answer.
Short doesn't always mean lost
A shortage at the dock is often a split or misrouted shipment, not stolen or destroyed freight. In LTL (less than truckload) networks, freight moves through terminals and gets loaded onto different trailers. One or two pallets can miss a transfer and sit on a dock in another city for a day or two. They can also be delivered to the wrong consignee by mistake. Many shortages are found and delivered within a few days if someone asks quickly. The ones that become claims are usually the ones nobody chased.
Overage, shortage and damage are different exceptions
Freight teams often group these as "OS&D," for overage, shortage and damage. They are recorded the same way but resolved differently.
| Exception | What it means at the dock | First action | What usually happens next |
|---|---|---|---|
| Shortage | Fewer pieces arrived than the BOL lists | Note the count on the receipt; ask the carrier to trace | Missing freight is found and delivered, or a claim is filed |
| Overage | More pieces arrived than the BOL lists, or freight that belongs to someone else | Note the extra pieces; don't absorb them into stock | Carrier picks up the extra freight or reroutes it to the right consignee |
| Visible damage | Pieces arrived, but the packaging or product is visibly damaged | Note the damage specifically; photograph it | Inspection, then a damage claim if the loss is real |
| Concealed damage | Packaging looked fine, damage found after opening | Report to the carrier quickly, in writing, with photos | Carrier inspection; claim is harder because the receipt was clean |
Who owns the problem: shipper or consignee?
It depends on the freight terms and who arranged the carrier. When the shipper booked the load, the receiver usually reports the exception and the shipper deals with the carrier. When the consignee arranged the freight, it often files directly. Either way, both sides need the same records: the BOL, the signed POD with notes, the photos and the count. A short delivery where the shipper and customer each assume the other is handling it is the most common way a valid claim runs out of time.
How do you check the delivery before signing?
Check the delivery in a fixed order: count the pieces, compare against the BOL, inspect the condition, then write and sign. Doing it in the same order every time keeps a busy dock from skipping steps when the driver is waiting.
Step 1: Get the BOL before unloading
Ask the driver for the delivery copy of the BOL or the delivery receipt before the freight comes off the truck. Read the piece count, the handling unit type (pallets, crates, cartons, drums) and the description. If the receipt shows pallets, count pallets. If it shows cartons, the carrier is responsible for cartons, which is a much more detailed count.
Step 2: Count as the freight comes off
Count each handling unit as it is unloaded, not after it has been mixed into the receiving area. Check that each piece carries the right shipping label or pallet label for this order. Freight with another company's label is a likely overage. A pallet that should be here but has no label at all may still be yours, so look at the contents before calling it an overage.
Step 3: Compare the count with the BOL
If the count matches the BOL, move on to condition. If it doesn't, count again with the driver watching. A second count with the driver present prevents the "the receiver miscounted" argument later. Ask the driver whether the missing freight is still on the trailer behind another stop's freight, which happens on multi-stop LTL routes.
Step 4: Inspect the condition
Look for crushed corners, punctured or wet cartons, broken shrink wrap, tilted or leaning stacks, broken pallet boards and tip or shock indicators that have been triggered. If the shipper uses a seal on a truckload, check that the seal number matches the BOL and is intact. A broken or missing seal should be recorded even if the count is right.
Step 5: Write specific notes on the receipt
Notes need to be specific. "Subject to inspection" or "possible damage" protects very little, because it doesn't say anything was actually wrong. Good notes give the count and describe the condition:
- "Received 10 of 12 pallets. 2 pallets short."
- "1 pallet damaged: crushed corner, 6 cartons open, product exposed."
- "Seal 448213 intact" or "Seal broken on arrival."
- "Shrink wrap torn on pallet 3, cartons shifted."
Ask the driver to sign or initial next to the notes. If the driver refuses, write "driver refused to sign notes" and the time.
Step 6: Photograph everything
Take photos before the freight is moved: the trailer interior, each damaged piece from several sides, the labels, the seal and the signed receipt with the notes. Phone photos with timestamps are enough. Photos taken an hour later, after the freight has been broken down, are much weaker evidence.
Step 7: Keep the damaged freight and packaging
Don't throw out damaged cartons or pallets, and don't dispose of damaged product until the carrier has had a chance to inspect it or has waived inspection in writing. Set it aside in a marked area. Carriers often ask to inspect before they will pay a claim, and disposed freight can't be inspected.
Should the receiver refuse the shipment?
Refusing a whole shipment because part of it is short or damaged usually makes things worse. The good freight goes back on the truck, the carrier may charge for return and storage, and the customer still doesn't have its product. In most cases, the better choice is to accept the freight, note the exceptions and refuse only pieces that are destroyed or unsafe, with the reason written on the receipt. Check the shipper's and carrier's rules first, because some product types have their own handling requirements.
What happens after the truck leaves?
After the truck leaves, the job is to notify the carrier in writing, trace any missing pieces, decide whether to file a claim and keep every record on the load. The first 48 hours matter most.
Notify the carrier the same day
Send a written notice to the carrier the day of delivery. Include the PRO number, the BOL number, the delivery date, the consignee, the BOL piece count, the count received, a description of each exception and the photos. Ask two direct questions: Is the missing freight in your network? When will it be delivered? A phone call is useful for speed, but the written notice is what goes on the record.
Tell the other party
If the receiver found the exception, it should tell the shipper the same day. If the shipper finds out from its customer, it should get a copy of the signed POD and the photos immediately. The customer will want to know when the rest of the order arrives. The shipper's sales or customer service team will need to know whether to ship replacement product or wait for the trace.
Trace the missing freight
Ask the carrier to run a trace on the PRO number. The carrier checks its terminals for freight that missed a transfer, was left on a dock or was delivered to another consignee. Follow up daily until the carrier confirms the freight is found or confirms it can't find it. Keep each reply. If the freight turns up, get a delivery date and make sure it arrives with its own delivery receipt, signed and noted the same way.
Check the origin side
Shortages aren't always the carrier's fault. Before blaming the carrier, ask the shipping dock to confirm what was loaded. Did the driver sign the BOL for 12 pallets? Was the trailer loaded by the shipper and sealed, with the driver unable to count? Is there a pallet still sitting at the shipping dock? Sometimes the shipment was short from the start. For a closer look at how changed pallet counts break the paperwork, see what happens when the pallet count changes after the BOL is printed.
Decide whether to file a claim
If the trace fails or the damage is real, the next step is a freight claim. A claim is a written demand to the carrier for a specific dollar amount, supported by the BOL, the POD with notes, photos, the commercial invoice showing the value of the goods and the carrier's freight bill. The full process is covered in how to file a freight damage claim. This article focuses on what happens at receiving, because that is where most claims are won or lost.
How much time is there?
For interstate shipments by motor carrier, 49 U.S.C. 14706 sets minimums: a carrier may not give a claimant less than nine months to file a claim, and may not give less than two years to file a lawsuit, counted from the date the carrier gives written notice that it has declined the claim. Carrier tariffs, the BOL terms or a contract can add specific requirements on top of that floor, so check them. Nine months sounds like plenty of time. In practice, claims are much easier to support while the photos, the driver, the receiver and the dock staff are all still easy to reach.
Don't short-pay the freight bill
A common mistake is to subtract the value of the missing freight from the carrier's invoice. Pay the freight bill according to your terms and file the claim separately. Mixing the two creates a payment dispute on top of a claim, and carriers often treat them as separate processes. The invoice and the claim should both point to the same load records, but they move on their own tracks.
What are the most common mistakes at receiving?
Most shortage and damage losses that can't be recovered come from a clean signature, a vague note or a late notice. The freight problem is often small. The paperwork problem is what makes it expensive.
Signing a clean receipt
The most common mistake. The driver is in a hurry, the receiver doesn't want to hold the truck and the receipt gets signed without a count. Later the count is short. The carrier has a signed POD saying everything arrived, and the claim becomes a concealed shortage, which is much harder to prove.
Writing "subject to count" or "subject to inspection"
These phrases don't record an exception. They say the receiver didn't check. Many carriers treat them as a clean delivery. Write what was actually found, with numbers.
Counting against the purchase order
The purchase order says what the customer ordered. The BOL says what the carrier accepted. If the shipper only shipped 10 of 12 pallets because two were backordered, and the BOL says 10, then nothing is short from the carrier's point of view. The receiver should count against the BOL and report order differences to the shipper separately.
Treating an overage as a bonus
Extra freight that arrives with a shipment almost always belongs to someone else. Absorbing it into stock causes inventory errors and leaves another consignee short. Note it on the receipt, set it aside and ask the carrier to collect it.
Waiting to report
The receiver tells the shipper a week later. The shipper tells the carrier a week after that. By then, the misrouted pallets may have been sold as unclaimed freight, the damaged product has been thrown away and the dock lead who signed is on vacation. Report the same day.
Letting the POD get lost
The signed receipt with the notes is the most important document in the whole process. If it stays in a folder at the receiving desk or in a driver's cab, the shipper can't use it. Get a copy, attach it to the load and confirm the carrier's POD image shows the same notes. If the carrier's POD is missing the notes, raise it right away. For more on this, see what to check when a delivery receipt arrives.
Decision rules for the dock
A short set of rules removes guesswork when a driver is waiting:
- No signature until the count is done.
- If the count differs from the BOL, recount with the driver present, then write the exact numbers.
- If anything looks damaged, describe it and photograph it before moving it.
- Never write "subject to" alone. Always write what was found.
- Report every exception to the shipping company or logistics team before the end of the shift.
- Keep damaged freight and packaging until someone says in writing that it can go.
A hypothetical example
Consider a hypothetical distributor that receives 12 pallets of components from a supplier. The receiver counts 10, notes "10 of 12 received, 2 short" on the receipt and photographs the trailer. The shipper notifies the carrier the same afternoon. The next morning, the carrier confirms that two pallets missed the transfer at a terminal two states away and delivers them the following day. No claim is filed, the customer gets its full order three days late and the cost is a few emails. Now run the same delivery with a clean signature. The two pallets still sit at the terminal, but nobody asks about them for two weeks. By then, the carrier says its records show a complete delivery, and the distributor spends weeks trying to prove a shortage on a signed POD.
A receiving checklist for short, over and damaged freight
Use this checklist at the dock and in the office for every delivery with an exception. It turns the steps above into a routine that any receiver can follow.
At the dock
| Check | What to do | Why it matters |
|---|---|---|
| BOL in hand | Get the delivery receipt before unloading | Sets the count the carrier is responsible for |
| Piece count | Count each handling unit as it comes off | Prevents mixing freight before counting |
| Labels | Match shipping and pallet labels to the order | Finds overages and misrouted freight |
| Seal | Check the seal number and condition on truckloads | Shows whether the load was opened in transit |
| Condition | Inspect corners, wrap, cartons, indicators | Finds visible damage before signing |
| Notes | Write exact counts and specific damage | Turns the POD into evidence |
| Driver acknowledgment | Ask the driver to initial the notes | Removes later disputes about what was written |
| Photos | Trailer, each damaged piece, labels, seal, signed receipt | Supports the claim if one is needed |
In the office, the same day
| Check | What to do | Owner |
|---|---|---|
| Copy of the POD | Scan or photograph the signed receipt with notes and attach it to the load | Receiving |
| Notify the shipper | Send the count, notes and photos | Receiving or consignee |
| Notify the carrier | Written notice with PRO, BOL, count and photos | Party that booked the freight |
| Request a trace | Ask the carrier to search its terminals | Party that booked the freight |
| Check origin | Confirm what was loaded and signed for at pickup | Shipper's shipping team |
| Hold damaged goods | Mark and set aside for inspection | Receiving |
Within the next few days
- Follow up on the trace every day until the carrier gives a clear answer.
- Confirm whether the carrier wants to inspect damaged freight.
- Tell the customer when replacement or missing freight will arrive.
- Decide whether to file a claim once the trace or inspection is complete.
- Record the outcome on the load: found and delivered, claim filed, or written off with the reason.
Preventing the next one
Receiving checks catch problems. Good shipping practices prevent them. The BOL should show an accurate piece count and handling unit type. Each pallet should carry a pallet label showing the order, the destination and "1 of 12," "2 of 12," and so on, so a missing pallet is easy to spot at any terminal. Pallets should be wrapped and stacked so they can't shift or be split. For packaging and loading practices that reduce damage, see how to prevent freight damage before it happens.
Look at the pattern
Once a month, review exceptions by carrier, lane, origin and product. If one lane keeps arriving short, the problem may be a terminal transfer. If one product keeps arriving damaged, the packaging may need work. If one receiver keeps signing clean receipts that later turn into shortages, the dock needs training. A log of exceptions is what turns one bad delivery into a fix.
How does Wilson, by Cartage, help when freight arrives short or damaged?
Wilson, by Cartage, is an AI logistics agent that quotes, books, tracks, documents and pays freight for manufacturers and distributors, so the paperwork that decides a shortage case is created and filed on every load. Traditional logistics software gives teams information. Wilson executes the work required to move shipments forward.
Wilson covers the parts of the process that most often break down:
- Before pickup, Wilson generates the bill of lading, packing slips and pallet labels from the order, so the piece count and handling units on the BOL match what is being shipped.
- During the move, Wilson tracks each load with the best source available: carrier API or EDI, GPS or ELD data where the carrier shares it, the carrier's website by PRO number, and email or phone calls when nothing else is current.
- When something goes wrong, Wilson handles exceptions such as a missed pickup, a cancellation or a delay. It contacts the carrier, tells the team, tells the customer if configured and starts rebooking from the approved carrier list, automatically within the rules or after approval.
- After delivery, Wilson requests the POD from the carrier and files it with the shipment, so the signed receipt and its notes are on the load the same day, not in a folder at the dock.
- At invoice time, Wilson audits each carrier invoice against the rate confirmation and the POD. Payments above the approval limits or outside the rules wait for a person.
Wilson books only carriers the company has approved, and it is not a freight broker. Teams work with Wilson in Slack, Microsoft Teams or email, and Wilson reaches carriers by email, API, EDI and phone where configured. Every message, confirmation and change is kept in the shipment's change history, so when someone asks what the carrier said about the missing pallets, the answer is on the record.
Wilson replaces the TMS for freight execution and connects to the company's ERP. Wilson works with SAP, NetSuite, Microsoft Dynamics 365, Oracle, Infor, Epicor, Sage, Acumatica and other ERP environments, with the exact connection depending on the customer's data flow and scope. Wilson can also produce carrier-performance and lane-rate reports on request from the loads it runs, which helps when reviewing which lanes keep producing exceptions.
The company stays in control. Wilson starts with assisted execution, the company sets the approval limits and routine actions run automatically within those rules as the workflow is proven. Timing depends on scope: most teams start on a few lanes and expand from there.
Pricing
Wilson is free on Wilson's network: the shipper pays the freight rate and nothing on top. When a shipper keeps its own carriers, the fee is 2% to 0.5% of what Wilson pays them, falling with volume. There are no seat fees, no setup cost and no contract.
FAQs
Our shipment arrived short. What do we do now?
Count the freight against the BOL, write the exact shortage and any damage on the delivery receipt before signing, take photos and notify the carrier in writing the same day with the PRO number. Then ask the carrier to trace the missing pieces. Wilson, by Cartage, an AI logistics agent, requests and files the POD on each load and keeps every carrier message in the shipment's change history.
What does OS&D mean?
OS&D stands for overage, shortage and damage. It is the shorthand carriers and receivers use for any delivery that doesn't match the bill of lading in count or condition.
Should we sign the delivery receipt if freight is missing?
Yes, but only after writing the exception on it. Sign with notes such as "10 of 12 pallets received, 2 short." A signature with specific notes confirms what did arrive without giving up the right to recover what didn't.
Is "subject to inspection" enough on a delivery receipt?
Usually not. It doesn't record any actual problem, and many carriers treat it as a clean delivery. Write what was found, with counts and a short description of the damage.
What is concealed damage?
Concealed damage is damage found after the delivery receipt was signed clean, usually when the cartons are opened. Report it to the carrier in writing as quickly as possible with photos and keep the packaging, because these claims are harder to prove.
How long do we have to file a freight claim?
For interstate motor carrier shipments, 49 U.S.C. 14706 says carriers can't give less than nine months to file a claim, or less than two years to sue after a claim is declined. Check the carrier's tariff and your contract for added requirements, and don't wait for the deadline.
What should we do with freight that isn't ours?
Note the extra pieces on the delivery receipt as an overage, set them aside and ask the carrier to collect them. Don't add them to inventory, because another consignee is missing them.
Should we deduct the missing freight from the carrier's invoice?
No. Pay the freight bill under your normal terms and file the claim separately. Deducting creates a payment dispute on top of the claim.
Who files the claim, the shipper or the receiver?
Either can, depending on the freight terms and who owns the goods in transit. Agree on it quickly, so the claim doesn't fall between the two companies.
Can the missing freight still show up?
Often, yes. In LTL networks, pieces can miss a transfer or be delivered to the wrong consignee. A trace requested the same day finds many of them within a few days.
Sources
- United States Code, 49 U.S.C. 14706, Liability of carriers under receipts and bills of lading: https://www.law.cornell.edu/uscode/text/49/14706
- Cartage, Wilson product FAQ and product scope, October 2026: https://cartage.ai