When should a receiving discrepancy become a vendor chargeback instead of a carrier claim?
The counterparty is decided by where the discrepancy was caused, not by who is easiest to invoice. Freight that left the vendor correct and arrived at your dock short, damaged, or delayed is a carrier matter, evidenced by the delivery receipt and the bill of lading. Freight the vendor never shipped, shipped in the wrong quantity, shipped as the wrong item, or shipped out of compliance with the purchase order is a vendor matter, evidenced by the PO line and the packing slip.
The routing test
Ask one question first: did the problem exist before the freight left the vendor's dock, or did it happen in transit? Everything else follows from the answer.
- Carrier claim. The vendor's paperwork (PO, packing slip, or ASN) matches what was supposed to ship, and the bill of lading shows the correct piece count and weight when the carrier took possession. What arrived does not match, whether that is fewer cartons, crushed packaging, or a delivery that came in days late against a guaranteed service. The freight was correct when it left; something happened between pickup and delivery.
- Vendor chargeback. The freight is exactly as the carrier delivered it (nothing lost or damaged in transit), but it does not match what the purchase order actually ordered. The vendor shipped zero of a line item, shipped 40 units against an order for 60, shipped the wrong SKU, or ignored a PO requirement. The carrier delivered faithfully whatever the vendor handed it.
Why the two routes run on different rules
A carrier cargo claim is governed by the bill of lading and the federal cargo-liability framework at 49 CFR Part 370. That regulation exists because a common carrier is moving someone else's goods, and it sets a uniform, minimum federal standard for how a claim gets filed and processed. A vendor chargeback has no federal equivalent, because it is not a transportation claim at all. It is a commercial dispute between a buyer and a supplier, governed by the terms of their own purchase agreement, whatever those terms say about shortages, substitutions, or PO compliance. There is no regulation to cite for that half. The purchase order and the vendor agreement are the rulebook.
A delivery receipt notation is not, by itself, a claim
49 CFR 370.3 spells out what a valid cargo claim actually requires: a written communication that identifies the shipment, asserts the carrier's liability, and states a specified or determinable dollar amount. The same section states plainly that a bad-order notation, an appraisal report, or a shortage or damage note written on a freight bill or delivery receipt does not, standing alone, satisfy that requirement. Writing "2 ctns damaged" on the delivery receipt is essential evidence. It is not the claim itself. The claim is the separate, written demand that follows it.
The same regulation also sets acknowledgment and disposition timelines that carriers themselves work under once a claim is filed. Those internal carrier timelines, and any filing deadline your own bill of lading or carrier contract sets for you, vary by carrier and by the terms governing that specific shipment. Check the paperwork for the shipment in question rather than assuming a fixed number of days applies.
What each route needs captured at the dock
For a carrier claim: the bill of lading showing what the carrier accepted, a time-stamped exception notation on the delivery receipt made before the driver leaves (or as close to it as possible), photos of the damaged packaging and goods, a piece count, and the weight if a shortage is weight-based.
For a vendor chargeback: the PO line itself, the packing slip or advance ship notice the vendor sent, a count by line of what actually arrived against what the PO calls for, and photos when the item received does not match the item ordered.
The ambiguous cases
Not every discrepancy is obvious at check-in. Three come up constantly:
- Concealed damage. The cartons look fine, the driver leaves, and damage turns up only once a carton is opened. Capture it immediately: photos of the carton and the contents, the date and time you opened it relative to delivery, and who found it. Whether it still qualifies as a carrier claim depends on the carrier's own concealed-damage terms, so check those before assuming either way.
- Sealed trailers. Nothing is visible at delivery because the trailer arrives sealed and intact. Note the seal number and its condition on the delivery receipt at the time of delivery, then handle whatever is found inside the same way as concealed damage.
- Count math that does not add up. Pallet count matches the bill of lading, but the carton count on one pallet does not match the PO. This can be either route: a carrier lost cartons off an otherwise-intact pallet, or the vendor built the pallet short in the first place. Count by line, not just by pallet, and compare against both the BOL and the PO before deciding.
When the cause is not immediately obvious, capture everything: photos, weight, a count broken out by PO line, and the exact time the notation was made. That record is what lets you route the discrepancy correctly later, even if you cannot tell in the moment.
A worked example
The following is illustrative only, with made-up numbers, to show how one delivery can split across both routes.
A dry-LTL receiver checks in one inbound delivery against a single purchase order with three lines. At the dock:
- Line 1 arrives with two of ten cartons visibly crushed. The bill of lading shows ten cartons accepted by the carrier. This is captured with reason code "carrier damage," a photo of the crushed cartons, and a note on the delivery receipt before the driver leaves. If those two cartons carried, say, $340 of goods at cost, that $340 is a candidate for a carrier cargo claim, evidenced by the BOL and the dated delivery-receipt exception, filed by the receiver's own team.
- Line 2 arrives complete and undamaged. Closed, no action needed.
- Line 3 does not arrive at all. The packing slip confirms the vendor never loaded it. This is captured with reason code "vendor short-ship" against the PO line, with the packing slip as evidence that the vendor's own paperwork does not show the item as shipped. If that line was worth, say, $610 on the PO, that $610 is a candidate for a vendor chargeback, evidenced by the PO and the packing slip, not the bill of lading.
Two discrepancies, one delivery, two different counterparties, two different evidence trails. Mixing them, filing a carrier claim for the missing line or a vendor chargeback for the crushed cartons, sends the request to whoever cannot actually resolve it.
Where LanePilot fits, and where it stops
LanePilot captures each receiving discrepancy against the PO line it belongs to, with a reason code (over, short, or damaged), at the point of receiving. For the vendor side, it drafts the chargeback letter from that captured discrepancy, itemized against the PO. The reviewer on your team reads it and sends it to the vendor themselves. LanePilot does not send, file, or negotiate that letter for you. For the carrier side, LanePilot's role stops at helping capture the evidence: what happened, on which line, with what documentation. It does not draft, file, or negotiate a carrier cargo claim; that stays entirely with your team, filed under your own bill of lading and carrier contract terms. Full detail on the receiving workflow itself lives on the OS&D Receiving pillar page, and inventory drift that starts at receiving is covered separately in why inventory doesn't match after receiving.
If you are setting up receiving discrepancy tracking for the first time, an account is free to create at lanepilottech.com/signup.
Frequently Asked Questions
Does a note on the delivery receipt count as a carrier claim?
No. Under 49 CFR 370.3, a shortage or damage notation on a delivery receipt or freight bill is evidence, but it does not by itself meet the minimum requirements for a cargo claim. A valid claim is a separate written communication that identifies the shipment, asserts the carrier's liability, and states a specific or determinable dollar amount.
What if I discover the damage after the driver has already left?
Document it immediately with photos, the date and time you found it, and who found it. Whether concealed damage found after delivery still qualifies as a carrier claim depends on the terms of the specific carrier and shipment, so check those terms rather than assuming either way.
Can one delivery involve both a carrier claim and a vendor chargeback?
Yes. Each discrepancy on the shipment is routed independently based on where it originated. Damage that happened in transit is a carrier matter; a line the vendor never shipped or shipped incorrectly is a vendor matter, even if both show up on the same delivery.
How long do I have to file a carrier claim or send a vendor chargeback?
There is no single universal deadline for either. A carrier claim's filing window is set by the bill of lading or the carrier's contract of carriage, and a vendor chargeback's timing is set by your own purchase agreement with that vendor. Check the terms governing the specific shipment or PO in question.
Does LanePilot file the carrier claim or send the vendor chargeback for me?
No to both, in different ways. LanePilot does not draft, file, or negotiate a carrier cargo claim at all; that is entirely on your team. For a vendor chargeback, LanePilot drafts the letter from the discrepancy it captured against the PO, but you review it and send it to the vendor yourself.