Concealed freight damage: the 5-day rule and protecting a claim

Six business days after delivery, the receiver opens a carton that looked intact and finds a split corner block. The internal packing has already gone out with the trash. The store now needs to explain when the damage happened with less evidence than it had on arrival.

That is an example of the problem concealed freight damage creates: the damage was not apparent at delivery, but the store must still support its account of the shipment's condition. Inspect promptly, notify the carrier in writing when damage is found, and preserve the goods and packaging while the inspection and claim proceed.

General information, not legal advice.

Understand what the five-day rule actually says

The NMFC concealed-damage provision changed effective April 18, 2015. The text reproduced by NAFEM calls for notice upon discovery and an inspection request. Its default notice period is five business days unless the carrier specifies otherwise.

The same provision addresses a later report by requiring supporting evidence that the damage did not occur after delivery. It does not say every claim automatically disappears on day six. Read the carrier's governing tariff and contract, including how its period is counted.

The practical response is to report promptly rather than use the final day as an inspection appointment. Put the shipment's rule in the receiving file before an exception occurs.

Separate notice, inspection, and the monetary claim

A damage notification tells the carrier what was found and asks it to inspect. An inspection records the condition. A formal claim asserts liability and requests a specified or determinable amount.

Under 49 CFR § 370.3, a delivery-receipt notation or inspection report alone does not meet the minimum claim requirements. Keep the formal claim as a separate assigned task, even if the carrier has already visited.

For covered U.S. interstate motor-carrier claims, 49 U.S.C. § 14706(e) prevents a carrier from setting less than nine months for filing a claim or less than two years for suit, with the lawsuit period measured from written disallowance. That does not make it sensible to wait before reporting damage or preserving evidence.

The Carmack guide explains those legal clocks. This post focuses on the inspection work that supports the claim.

Make prompt inspection part of receiving

Use inspection within 24 hours as a suggested store target, with faster action where the shipment's terms require it. Assign the job to a person, not simply to the shift that happens to have space.

Open cartons in an area where the packaging can be kept with the piece. Photograph the unopened carton and its identifiers, then record the opening and the internal supports. Compare the actual furniture with the PO configuration as well as checking condition.

Keep these observations:

• Delivery date and time.
• Carton and shipment identifiers.
• Exterior condition before opening.
• Date, place, and person performing the inspection.
• Internal packing and how the piece was supported.
• Wide photographs of the whole piece.
• Close photographs identifying the damage.
• Any movement or handling after delivery.

A consistent receiving checklist makes these records easier to assemble. The inspector should not have to invent a filing system while standing beside an open crate.

Preserve the piece while arranging inspection

Send the carrier a written description, photographs, shipment reference, and request for inspection. Save proof of the report and the response. Notify the vendor through its own required channel as well; a vendor's notice requirement can be separate from the carrier's.

Retain the carton, cushioning, supports, labels, and damaged piece in their documented condition. Record any necessary movement or protective action. If an inspection is waived, obtain that instruction in writing and preserve your own complete inspection record.

Do not repair, discard, or send the goods away merely because the damage looks straightforward. Ask for written inspection and disposition instructions first. A repair can change the evidence the carrier needs to assess cause and value.

Keep a separate note of any agreed mitigation work and its cost. Approval to inspect, approval to repair, and agreement to reimburse are different decisions.

Do not rely on “subject to inspection”

A general reservation does not describe the damage that was visible at delivery. Record the actual crushed corner, puncture, shortage, or wet carton wherever it can be observed.

A carrier's loss-and-damage guide specifically distinguishes detailed damage notations from a standalone inspection reservation. Its older notice timetable should not be substituted for the carrier's governing terms, but the documentation distinction is useful.

If the delivery receipt was clean, preserve the evidence showing when the carton was opened and who handled it afterward. A clean signature is an evidentiary issue; it should not be treated as either a guaranteed denial or a guarantee that a later claim will succeed.

Establish who files under the shipment documents

Who paid the freight does not by itself establish who should file. Review the purchase terms, FOB point, bill of lading, and any authorization between the vendor and the store.

The South Carolina procurement reference illustrates ordinary FOB arrangements: the buyer handles claims under FOB Origin even where the seller prepaid freight; under FOB Destination, that role generally remains with the seller. Use the actual agreement to establish your own handoff.

If the vendor will file, send the evidence promptly and obtain a claim reference. If the store will file, confirm the carrier and recipient designated for claims. Avoid duplicate competing claims while making sure neither party's silence is mistaken for action.

Check with your attorney when responsibility, coverage, a deadline, or an inspection-related denial is disputed. Bring the complete shipment documents and correspondence to that review.

Correct the OrderPilot receipt when damage is found late

If the piece was posted as good stock, use the supported receipt correction to reflect the discovered problem. Record a reason such as “Concealed frame damage found when carton opened during inspection,” with the date and evidence.

Lowering a received quantity removes units from the stock created by that receipt. The correction can be refused if those units have already been sold or allocated. Resolve the linked commitment through the supported process rather than changing an unrelated receipt. Attach the photographs, inspection request, carrier responses, and delivery documents to the PO. Vendor replies stay with the PO when reply capture is configured; retain carrier correspondence as part of the attached claim evidence. Give files specific names that identify the piece and view. “Chair rear corner” will be more helpful next month than “final photo final.” The landed-cost guide covers the separate cost review after a rejection.

Handle damage discovered at the customer's home as its own investigation

A piece that has left your warehouse has another handling stage in its history. Record the customer's report, delivery documents, photographs, and the condition observed during the store's earlier inspection. Establish which transport leg or other cause the evidence points toward.

Do not automatically describe the problem as inbound carrier damage, and do not assume the customer's rights are governed by your inbound carrier's notice period. The customer delivery-day checklist and damage-reporting policy guide address that different relationship.

Tell the customer what the store is investigating and when the next update will come. If a replacement date is not confirmed, give an update commitment rather than inventing one.

Keep a short reporting calendar beside the claim file

Use the freight-claim letter to assemble the monetary claim once the evidence and amount are ready. Keep the notification, inspection, claim, and customer resolution connected without treating any one of them as a substitute for the others.

Sources

1. 49 U.S.C. § 14706: carrier liability and minimum claim periods — U.S. Code, reproduced by Cornell Legal Information Institute; U.S. federal law as of January 15, 2026.
2. 49 CFR § 370.3: filing of claims — U.S. Department of Transportation regulation, reproduced by Cornell Legal Information Institute; U.S. federal law as of January 15, 2026.
3. NMFC Item 300135-A: reporting concealed damage — NMFTA provision reproduced by NAFEM, effective April 18, 2015.
4. Guide to loss and damage claims: delivery-receipt evidence — FedEx Freight; used for documentation practice, not its superseded notice period.
5. Procurement terms: FOB examples — South Carolina State Fiscal Accountability Authority.