What Does Over, Short, and Damaged (OS&D) Mean (and How to Handle It)

Resources > What Does Over, Short, and Damaged (OS&D) Mean (and How to Handle It)
Empower your shipping operations with in-depth understanding of OS&D claims. With our tips, you’ll be able to avoid the expenses and wasted time that come with these declarations.
Published: August 24, 2023
Last Modified: February 24, 2025
Author: Jacob Lee

OS&D claims are something that every business wants to avoid. Receiving one can waste time and inflict additional expenses on your business. You’ll also have an upset customer that will want their shipment fixed. But what exactly is an OS&D Claim? We’re going to show you exactly how they work.

Key takeaways:

  • OS&D stands for over, short, and damaged.
  • An OS&D claim is an indicator that your customer is dissatisfied with their shipment, and your expenses will likely rise when you correct it.
  • OS&D claims can be caused by poor freight handling and loading, incorrect packaging, road conditions, traffic accidents, and paperwork mistakes.
  • The types of OS&D claims include short, over, visible damage, hidden damage, and lost claims.

OS&D claims can be a real headache for everyone involved in the transportation process. As a shipper, it’s important for you to do your part to prevent this from happening. 

What Does OS&D Stand For?

OS&D is an industry term that many shippers find confusing and intimidating. Fortunately, this acronym has a very simple meaning. 

OS&D stands for the following:

  • Over
  • Short
  • Damaged

Over, is when a customer gets more than what they ordered or what was listed on the shipping document. While obtaining more than what was purchased might seem appealing, an excess of freight can cause inventory issues and additional costs for buyers.

Shortage is when a customer receives less than what was listed on the BoL. This can frustrate buyers that paid a certain price for their goods, only to get a smaller quantity of product. 

Being short of products can also create problems for a customer’s inventory levels. Additionally, billing and order management must be adjusted when a buyer receives fewer items than what was bought.

Damage refers to freight that arrives broken, scratched, or dented. Cargo in this state is usually inspected and documented in the BoL or the Delivery Receipt. Afterward, customers file an OS&D freight claim for compensation or request a replacement for the damaged goods.

What is an Over, Short, and Damaged Report?

An OS&D report is a document used by consignees to identify discrepancies between what was supposed to be shipped and what actually arrived. 

This type of paperwork uses the following information to determine the accuracy and quality of a shipment:

  • Shipment numbers
  • Item descriptions
  • Item quantities
  • Observed damages

Both the driver and the consignee receive a copy of the OS&D shipping report. After the paperwork is completed, all parties involved can work towards a resolution. 

This can be done in the following ways:

  • Filing a claim
  • Refunds
  • Returning overages
  • Returning and replacing damaged goods

Regularly reviewing OS&D reports can provide insights into recurrent issues. This can help you improve their operations for future shipments.

Why Are OS&D Claims Important for Shippers?

Carriers are the ones who are typically responsible for correcting the discrepancies in an OS&D claim. That said, shippers will also be responsible for replacing damaged goods or sending a new shipment of items for orders that were short. 

Two particular challenges that OS&D claims can cause for shippers include:

  • Dissatisfied customers
  • Financial implications

A business must know about these challenges to fully appreciate the threat that OS&D claims can pose to their operations. 

Impact on Customer Satisfaction

In the world of shipping and logistics, customer satisfaction hinges on delivering goods as promised. When a receiver submits an OS&D claim, it doesn’t just mean they didn’t get the correct amount of goods or their products are damaged. They’re likely dissatisfied with the experience as well. 

As a result, your customers can lose trust in you and will likely search for a new retailer. To avoid losing out on profits, packing your goods properly and sending the right quantity of cargo is essential. 

Financial Implications for Businesses

There are many financial implications for businesses when they’ve received an OS&D claim, mostly revolving around how you solve the issue. 

Numerous expenses are often involved, including:

  • Cost of replacements
  • Refunds and discounts
  • Administrative costs
  • Loss of business

When goods are damaged or missing, you’ll need to send replacements. This doubles the shipping and product costs for the same order. Customers may even demand refunds or discounts due to discrepancies. 

Handling OS&D claims involves paperwork and communication. In some cases, legal processes will be carried out. These administrative tasks will take up time and cost money. 

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Common Causes of Over, Short and Damaged Shipments

There are many reasons for overages, shortages, or damages involving cargo. Businesses will face these challenges with every shipment they send. The goal to should be to minimize them as much as possible.

Common causes to look into include:

  • Handling and loading 
  • Incorrect packaging
  • Road conditions
  • Accidents
  • Paperwork and administrative errors

We’ll explain how you can avoid each of these challenges.  

1. Handling and Loading Issues

The care that goes into the handling and loading processes directly influence the condition goods will arrive in. When freight is mismanaged, it often results in OS&D claims.

Examples of poor loading practices include:

  • Inaccurate product counts
  • Haphazard handling
  • Poor stacking
  • Lack of securing

Failing to count items accurately during loading can cause overages or shortages. Miscounts lead to discrepancies between a BoL and actual goods that arrived. 

Rough or careless handling can damage items while packaging and loading. Damage can also occur if goods are stacked improperly. For example, heavier items stacked on top of fragile goods can cause breakage or superficial blemishes. 

If freight isn’t secured properly to a pallet within a trailer, it can move or fall during transit. This is another cause of damage that will lead to an OS&D claim. Stack your cargo on a pallet correctly and firmly secure it in place. 

Related: High Value Cargo Transportation

2. Incorrect Packaging

While packaging won’t cause overage or shortage, it can determine if goods will arrive undamaged. Even well secured boxes and pallets won’t protect poorly packaged items. 

Packaging mistakes that can lead to damaged products include:

  • Insufficient cushioning
  • Wrong box sizes
  • Weak sealing
  • No fragile item label
  • Reuse of old packaging

Goods can get jostled and damaged without enough protective cushioning. Therefore, it’s important that packing materials like shipping paper and bubble wrap be used to protect the item(s) inside a box. 

The wrong box size can also lead to damaged cargo. Packaging that’s too small can restrict or prevent the use of packing materials. This can make it easier for items to sustain damage. 

Boxes that aren’t closed properly can split open, causing the items inside to spill out or become exposed to harmful conditions. Use a fragile item label if you’re sending goods that can be easily broken. This will signal to truckers and warehouse personnel that your products should be handled with care. 

Finally, abstain from using old packaging. Used boxes and packing material are less likely to provide the security that freight needs to arrive safely at a destination. 

At the end of the day, the right packaging is there to avoid easily preventable damage. 

Related: Non-palletized Freight

3. Road Conditions

Transporting goods over land often means contending with a variety of road conditions. The state of a highway plays a role in the safety of a shipment. While it really isn’t something you can control, it’s still good to be aware of what dangers these can pose.

Hazardous road conditions that could lead to damaged cargo includes:

  • Loose gravel 
  • Potholes
  • Uneven roads

Driving over loose gravel can cause cargo to fall down or bang against other types of packages and pallets. Potholes in a road or highway can send a shockwave through a trailer that causes freight to tip over. 

Uneven roads can pose a threat to freight as well. If a highway isn’t perfectly level, it can be easy for packages inside a trailer to tip over. Despite road quality not being the fault of the shipper, customers may still issue OS&D claims if their freight is damaged for these reasons. 

It may be possible to avoid certain routes if you know that conditions will be problematic. When that isn’t possible, fall back on proper handling and loading procedures as much as possible. 

4. Accidents

Another cause of freight damage is traffic accidents. Safety is a major priority for truck drivers, but other drivers on the highway might not be as careful. 

Traffic accidents can result in:

  • Physical harm
  • Cargo spillage
  • Exposure to weather

Impact from an accident can cause goods to be crushed or broken by another vehicle. It’s possible that a crash could also result in liquid items spilling from a container. Finally, damage can occur after an accident if freight is exposed to the weather. This is especially relevant if a reefer trailer holding perishable items stops working. 

Unfortunately, trucking accidents are fairly common and have been fluctuating over the past few years despite efforts are increasing safety procedures. 

The graphic shows the amount of trucking accidents between 2020 and 2024. In 2020, there 143,000 trucking accidents. In 2021, there were 166,000 trucking accidents. In 2022, there were 165,000 trucking accidents. In 2023, there were 152,000 trucking accidents. In 2024, there were 139,000 trucking accidents.

While the data may not include stats on damaged cargo resulting from accidents, it provides a solid reason to make sure items are well packaged. 

Not every accident will result in damaged freight, but shippers should be prepared in case it does occur. Picking carriers that have good safety records is a great way to find a reliable partner to transport your cargo. 

Related: Blanket Wrap Shipping

5. Paperwork and Administrative Errors

Paperwork and administrative errors can result in mistakes affecting multiple aspects of the supply chain, including cargo counts

These include:

  • Mislabeling paperwork
  • Mismatched orders
  • Incorrect label placement

Incorrect labels or tags can lead to shipments being sent to the wrong destination. As a result, customers might receive goods or products they never even ordered.

Mislabeling can also lead to damaged goods. This can happen if ‘Fragile’ or ‘This Side Up’ labels aren’t placed on boxes before palletization. Overage and shortage could occur if orders become mismatched, which usually when two or more shipments are unintentionally combined.

Related: Documents Required for Domestic Shipping


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What Are the Different Types of OS&D Claims?

There are actually a variety of claims fall under an OS&D status besides the obvious ones. You’ll need to understand each declaration to properly address them if one is submitted. 

  • Aside from over and short, OS&D claims can make the following distinctions: Visibly damaged
  • Concealed damage
  • Lost

We’ve already reviewed the basics behind dealing with short or over claims, but let’s look more closely at how the different types of damage claims may need to be addressed. 

1. Visibly Damaged Claims

Visibly damaged claims are submitted when the external appearance of a shipment indicates clear signs of harm. These claims are easy to verify because disfigurement of the cargo is evident without having to open the package.

These also tend to be reported faster, or may even cause the receiver to reject the shipment entirely. 

Causes for visibly damaged claims include:

  • Rough handling
  • Inadequate packaging
  • Weather elements
  • Collisions in transit

As the seller of the goods, and likely the one who arranged the shipping, you’ll bear the cost of replacing the damaged goods and additional shipping expenses for new items. A seller may be able to recoup some costs if they can prove it was the carrier’s fault or if they had cargo insurance in place. 

2. Concealed Damage Claims

Concealed damage claims are filed for freight that isn’t noticeably damaged from the outside packaging. Instead, customers submit this declaration after opening their boxes and noticing the items inside are damaged

Factors that cause concealed damage include:

  • Internal shifting
  • Temperature fluctuations
  • Compression damage
  • Vibrations

This type of claim can be harder to process because customers won’t discover them until after accepting the cargo. In some cases, damaged inventory can go weeks or months without being noticed. Proving who caused the damage can also be harder, which only extends the process.

3. Lost Claims

Lost claims arise when a shipment never reaches the intended destination. When customers don’t receive their cargo, they’ll essentially be suffering from an extreme shortage. This is the worst type of claim that you can receive. 

In most cases, you won’t be able to recover any of the cargo they sent. Additionally, you’ll have to replace the entire shipment or refund your customer. 

How Can Shippers Minimize OS&D Claims?

OS&D claims are a recurring challenge in the transportation industry. There’s always the risk that damage could occur or that the wrong amount of goods could arrive at a destination. Fortunately, there are methods that you can use to avoid OS&D claims, or at the very least minimize them. 

Follow Best Practices for Packing and Palletizing

Ensuring items are packed correctly will guarantee they’ll withstand the journey. Proper packing can mean the difference between a product reaching its destination intact or ending up as part of an OS&D claim. 

When preparing a shipment, shippers should do the following:

  • Use the right box size
  • Choose sturdy packaging materials
  • Seal correctly
  • Use applicable labels

Choose a box that fits the product snugly, with just enough room for padding. Make sure to avoid boxes that are too large or too small for their cargo. The packing materials that a business uses to prepare their goods for transport must be sturdy as well. 

This includes:

  • Strong clear wrapping
  • A functioning pallet
  • Firm and new boxes
  • Bubble wrap and packing paper

These packing items will ensure that your goods are protected during the transportation process. Sealing is another important step. To keep boxes closed, utilize strong packing tape. Finally, all boxes and palletized freight should have the appropriate packing labels.

This includes the following warnings:

  • Hazmat 
  • Fragile 
  • This Side Up

These labels will let warehouse workers loading and unloading the cargo know that they need to handle the freight with care. Now that your boxes are packed, you’ll need to secure them to a pallet. Start by stacking them onto the platform.

Two popular stacking methods include column and interlock stacking, but there are plenty of others you can choose from. How high you can stack freight on your pallet can vary based on the customer receiving your freight, so make sure to check with their requirements. 

Secure your boxes to the pallet using stretch or shrink wrap. If permitted, you can use straps for extra support. Even though your boxes will have labels, you’ll also need to apply pallet labels to the outside of the stretch wrap. 

Related: How To Palletize Boxes

Effective Communication with Carriers

Communication is a cornerstone in the shipping industry. Establishing your intentions with carriers will help reduce misunderstandings and potential OS&D claims.

You can communicate effectively with carriers in the following ways:

  • Provide clear shipment details
  • Use written agreements
  • Encourage open dialogue

You’ll need to give the carrier precise information about your freight. This will ensure that your  cargo is loaded and unloaded carefully. 

Always use written contracts or agreements outlining responsibilities and expectations. These documents should clearly define all terms and conditions regarding a shipment. This should include reassurances against the often fraudulent practice of double brokering.

Double brokered freight is more likely to get lost or stolen, not to mention involve you in legal disputes. 

Accurate and frequent communication with your  carrier will help prevent potential issues that might occur. 

Related: How to Report Double Brokering: Detect and Prevent Freight Scams

Thorough Documentation and Record Keeping

Proper documentation can be your best defense against OS&D claims. By properly reviewing and confirming the right quantity of freight listed in transportation documents, businesses will ensure the right amount of cargo is sent to a customer. 

Record keeping is useful when referring back to archived documents in case a customer files a false claim. With accurate paperwork, businesses will be able to prove that they sent the right amount of cargo. 

Are There Exclusions for OS&D Claims?

While OS&D claims require shippers to replace damaged products or orders that are short, carriers are also liable. A carrier often rectifies OS&D claims by reimbursing the value of lost or damaged goods. They can also arrange for a shipment that will deliver the replacement items. 

That said, there are five exclusions that carriers can use to avoid being held liable in an OS&D claim.

  1. Act of God
  2. Public Enemy or Act of War
  3. Act of Default of Shipper
  4. Public Authority
  5. Inherent Vice

Acts of God include losses and damage caused by natural disasters or similar events beyond the control of the carrier, such as:

  • Floods
  • Earthquakes
  • Severe storms
  • Tornados 

Damage or loss caused by the acts of a foreign military force falls under the Public Enemy or Act of War exclusion. This is usually applicable to international shipments, which means the carrier is unlikely to claim this exclusion for domestic shipments. 

If a carrier can prove that discrepancies in the shipment were caused by you, the shipper/seller, they can claim the Act of Default of Shipper exclusion. In this scenario, you’ll be responsible for addressing the discrepancy in the OS&D claim. 

The Public Authority, or Authority of Law exclusion, is applicable when goods are seized or destroyed by a legal authority. This exclusion typically applies to imports entering the country. Customs authorities may seize goods to inspect them for regulatory compliance. 

If items don’t comply to regulations, they may be destroyed. For instance, the need to destroy agricultural goods that may arrive with pests. Similar to Act of War, carriers are less likely to claim the Public Authority exclusion for domestic shipments. 

The Inherent Vice exclusion applies to shipments that are already susceptible to damage because of how they’re made, such as: 

  • Perishable goods
  • Fragile items
  • Antiques and fine art
  • Precious stones or metals

For a carrier to use the Inherent Vice exclusion, they’ll need to prove they took the necessary steps to protect the damaged shipment. 

Minimize Your OS&D Challenges with Expertise from USA Truckload

At USA Truckload Shipping, we pride ourselves on our deep understanding of the industry's intricacies and our unwavering commitment to flawless performance. We can provide you the knowledge and tools to overcome the challenges posed by OS&D claims. You’ll also gain access to a variety of carriers from our vast network. 

You can also take advantage of our premium services, such as:

  • Standard truckload shipping: We’ll find a reliable carrier that can transport your freight at competitive prices. 
  • Drayage: Our facilities located near busy ports have chassis capacity that can move your containers.
  • Expedited delivery: With our 99.5% on-time delivery rate, we guarantee your freight will arrive within your specified time frame. 

Trust isn't built overnight, but with USA Truckload, you're partnering with a team that prioritizes your needs and understands the stakes. Why wait? Secure the future of your shipments, minimize risks and ensure the satisfaction of your customers.

Fill out your request for proposal (RFP) to get started with our services today. You can also dial us at (866) 353-7178 or reach out using our contact page if you have questions or concerns. Take a confident step towards a hassle-free shipping experience today!

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