Critical Freight Salvage: Recovering a Load That Has Already Gone Wrong
Short answer
Freight salvage is what happens when a shipment is damaged and, because of that, is not delivered or is refused on tender. Federal rules take over: the carrier must give notice, dispose of the goods, assign a lot number and record the money recovered against your claim. A procedure, not a negotiation.
Most freight emergencies are about time. This one is not. When a load is damaged in transit and the consignee will not take it, the shipment leaves dispatch and enters a federal procedure — and knowing it is the difference between recovering value and learning weeks later that your freight was sold.
Everything below is 49 CFR Part 370, eCFR edition of 19.08.2026.
What Is Critical Freight Salvage?
The operative language is 49 CFR 370.11(a): property “damaged or alleged to be damaged and… as a consequence thereof, not delivered or… rejected or refused upon tender thereof”. Two conditions, both required —
- the freight is damaged, or alleged to be damaged, and
- because of that, it was not delivered, or was rejected or refused.
Freight refused for paperwork, a missed appointment or a capability mismatch is not salvage — that is a possession problem, covered in Emergency Cargo Recovery. “Critical” salvage only means the load was time-sensitive before the damage: aerospace parts, pharmaceutical product, line-down components.
What Is the Carrier Required to Do With Damaged Freight It Cannot Deliver?
Five duties, not options, all in 49 CFR 370.11(a):
- Gives due notice, whenever practicable, to the owner and others with an interest in the goods.
- Sells or disposes of the property unless advised to the contrary after that notice — itself or through a salvage agent.
- Disposes of it so as to “fairly and equally protect the best interests of all persons having an interest therein.”
- Makes an itemised record correlating the property to the shipment and any claim.
- Assigns a successive lot number to each lot, noted on the shipment record and on the claim.
Lot number
A sequential identifier assigned to each batch of salvaged property, recorded against both the shipment and the claim so recovered money traces back to the freight it came from.
The lot number exists by rule, and it is the thread that lets you audit the rest. A sixth duty prevents self-dealing: where salvage goes to a carrier employee, or to a salvage company in which the carrier or its officers have “any interest, financial or otherwise”, the records must fully reflect that relationship (49 CFR 370.11(b)).
What Does “Due Notice” Mean, and What If You Do Not Answer It?
The carrier gives notice “whenever practicable” and then, “unless advised to the contrary after giving such notice”, disposes of the property. Silence is not a hold — silence is permission. Answer in writing immediately, even if the answer is “dispose of nothing yet”. A notice left unread for a week is a shipment sold.
Two things the rule does not do:
- It sets no deadline and no waiting period before disposal. “Due notice” and “whenever practicable” are not defined as a number of days.
- It does not say the notice must reach you — it says the owner and other interested parties. If your broker is on the bill of lading and you are not, it goes to the broker, which is why a named person and a monitored address belong on the bill of lading before anything goes wrong.
How Does Salvage Money Affect What You Get Paid on the Claim?
By rule. Once salvage is processed and a claim arrives on the same shipment, the carrier records in the claim file the lot number, the amount recovered, and the date that money was transmitted to the person lawfully entitled to it (49 CFR 370.11(c)) — three things you can demand, because the carrier must hold them.
Around it sit the claim clocks, which run on the claim you file, not on the damage:
| Requirement | Deadline | Citation |
|---|---|---|
| Written acknowledgment of a written claim | 30 days from receipt, unless paid or declined inside the same 30 days | 49 CFR 370.5(a) |
| Pay, decline, or make a firm written compromise offer | 120 days from receipt of the claim | 49 CFR 370.9(a) |
| If still unresolved: written status and reason for delay | at 120 days and every succeeding 60 days | 49 CFR 370.9(a) |
They start only if the claim identifies the shipment, asserts liability and demands a specified or determinable amount of money (49 CFR 370.3(b)) — a photo of a crushed pallet with “please advise” underneath starts nothing.
Nor is a damage report a claim. Bad order reports, appraisal reports, notations on freight bills or delivery receipts and inspection reports are not claims “standing alone” (49 CFR 370.3(c)); they are evidence, and someone on your side still has to write the claim. Two further rules decide what you will be asked for:
- It may require the bill of lading, evidence of freight charges and the invoice; where goods were never invoiced to the consignee, or moved at bookkeeping values only, it must require you to establish destination value before paying voluntarily (49 CFR 370.7(b)).
- For loss of an entire package or shipment that cannot otherwise be authenticated, it must obtain a certified written statement from the consignee that the property was never received from any other source (49 CFR 370.7(c)).
Salvage or Recovery — Which Process Are You Actually In?
| Recovery | Salvage | |
|---|---|---|
| Trigger | Freight refused, held or stranded — undamaged | Freight damaged, and refused because of it |
| Your critical action | Identify who can authorise release | Answer the notice in writing before disposal |
| Clock that matters | Your delivery deadline | 30-day acknowledgment · 120-day disposition · 60-day updates |
| Wrong move | Dispatching before authorisation | Waiting to see what the carrier does |
What Should You Do in the First Two Hours After Damage Is Reported?
- Establish whether the freight is damaged or merely refused — that decides the procedure.
- Photograph everything before anything moves — pallet in place, seal, trailer, packaging, count.
- Ask whether any of it is still deliverable — partial delivery of the sound portion usually beats a full salvage.
- Start the replacement in parallel if the load is time-critical — a production line does not wait for a claim.
- Answer any salvage notice in writing, immediately.
- Ask for the lot number if disposal has begun.
- File the actual claim, with a specified amount in it, so the clocks start.
Where Does Vic’s Fit When a Load Has Already Gone Wrong?
Vic’s is not a salvage agent. On a damaged-load event we do step four: move the replacement under dedicated, exclusive-use control — one vehicle, one shipment, one named driver — documenting condition and piece count at both ends, so what we carried is not later confused with what was damaged.
The salvage belongs to the carrier that held the freight; the claim belongs to you; the replacement is where a dedicated expedited carrier is useful. Anyone offering to run all three should be asked which side of the claim they are on.
What is critical freight salvage?
Critical freight salvage is the disposal of time-sensitive freight that was damaged and, because of that damage, was not delivered or was refused. Under 49 CFR 370.11 the carrier must give notice, dispose of it fairly, assign a lot number, and record the money recovered against your claim.
Who provides critical freight salvage services?
The carrier that held the freight when it was damaged is responsible under 49 CFR 370.11 — acting itself or through a competent salvage agent. Expedited carriers move the replacement shipment; they are not the salvage agent, and a provider claiming both roles should be questioned.
What happens to freight that is damaged and refused by the consignee?
The carrier gives due notice to the owner and interested parties and then, unless told otherwise, sells or disposes of the goods. It must keep an itemised record, assign a lot number, and record the recovered amount in the claim file (49 CFR 370.11).
Is a bad order report a freight claim?
No. Bad order reports, appraisal reports, notations of shortage or damage on freight bills or delivery receipts, and inspection reports do not constitute claims standing alone (49 CFR 370.3(c)). A claim must identify the shipment, assert liability, and demand a specified or determinable amount.
How long does a carrier have to settle a damaged freight claim?
It must acknowledge a written claim within 30 days, and pay it, decline it, or make a firm written compromise offer within 120 days. Beyond 120 days it must report status and the reason for delay every 60 days (49 CFR 370.5(a), 370.9(a)).
Written by the Vic’s Freight operations desk. Verified 31.08.2026 against 49 CFR Part 370 retrieved from the eCFR live API, title 49 edition of 19.08.2026 (part authority 49 U.S.C. 13301 and 14706; source 62 FR 32042, 12.06.1997; § 370.1 amended at 91 FR 7859, 19.02.2026). Every quoted deadline and duty on this page is federal regulation; the seven-step sequence is how Vic’s works a damaged-load event and is not a regulatory requirement. This page states no salvage recovery rate, no typical settlement figure and no average timeline — we have not measured them, and there is no primary source we would be willing to cite for them. Part 370 does not apply to household goods claims, which fall under 49 CFR part 375. Nothing here is legal advice.