Every shipper knows that loss and damage happen, but few realize how much those “small” incidents add up.

On average, 1% of all parcel shipments end up lost or damaged. The exact number of packages affected can vary depending on your shipping characteristics, but for high-volume shippers, that 1% can easily add up to thousands of packages and hundreds of thousands of dollars in recoverable value every year.

The bigger question is: Are you recovering that money or losing it?

When One Percent Becomes a Big Problem 

Let’s do the math.

For a shipper moving hundreds of thousands, or even millions, of packages each year, just 1% being lost or damaged can add up fast. For example, a company shipping 500,000 packages annually could see roughly 5,000 impacted shipments. If even a fraction of those qualifies for recovery, that’s hundreds of thousands of dollars left on the table.

Even for smaller parcel programs, the impact adds up quickly. Lost and damaged shipments are a common and costly blind spot in parcel spend management—often dismissed as unavoidable or too time-consuming to pursue.

Why Recovery Often Falls Through the Cracks

Carriers let shippers file claims for lost and damaged packages, but the process is rarely straightforward. It is often:

  • Manual and time consuming
  • Dependent on tight filing windows
  • Inconsistent across carriers
  • Easy to deprioritize when teams are stretched thin

As a result, many claims go unfiled or miss carrier deadlines. Others are denied for incomplete documentation or missing data.

Shippers end up absorbing the cost even when they could have recovered transportation costs and up to $100 per package based on product value.

What Strong Claims Management Really Looks Like

A good claims management process does more than submit paperwork. It combines automation, data and accountability across every carrier relationship.

An effective solution should:

  • Identify lost and damaged shipments automatically using shipment visibility and carrier scan data
  • File claims quickly and accurately with all required documentation
  • Track approval and payment status so recoveries don’t get lost in the shuffle
  • Provide closed loop reporting that connects Finance, Operations and Customer Service
  • Highlight patterns and root causes to reduce future incidents

When claims management runs efficiently, it delivers both financial recovery and operational improvement.

Using Claims Data to Strengthen Your Network

Lost and damaged shipments don’t just impact profitability—they impact customer relationships. Each late or damaged delivery erodes customer trust, drives service calls, and increases churn.

But the data behind those claims can do more than recoup costs, it can reveal where accountability is needed most. Claims insights can highlight:

  • SKUs or packaging types most prone to damage
  • Carriers or lanes with consistently higher loss rates
  • Fulfillment or handling practices tied to recurring issues

By uncovering these patterns, shippers can hold carriers accountable for performance, improve packaging and handling processes, and make smarter carrier selections. The result: fewer claims, stronger partnerships, and better outcomes across the supply chain.

Why It Pays to Act Now

Carrier surcharges are rising, peak season brings added volatility and margins remain tight. Every recoverable dollar matters.

Shippers who treat loss and damage as “the cost of doing business” are leaving real money on the table. Data-driven claims programs help:

  • Protect profit margins
  • Improve accountability with carriers
  • Reduce customer churn
  • Support continuous improvement across operations

Turning Loss into Leverage

The 1% of shipments lost or damaged each year may seem minor, but the financial and customer impact can be significant. A disciplined, technology-driven approach to claims recovery turns those losses into measurable gains.

Transportation Insight’s Lost & Damage Claims Management solution helps shippers recover more of what’s rightfully theirs by automating claims filing, tracking recoveries and improving visibility across the parcel network. The solution integrates easily into a larger parcel management program or operates as a standalone service for companies focused solely on loss and damage recovery.

By taking control of that 1%, you protect profit, improve accountability and create a stronger foundation for your customer experience.

Want to learn more? Contact us now.