How to Mitigate Shipment Damage or Loss

A shipper or consignee should not reject a rail car (back to the delivering rail carrier) when shipment damage or loss occurs without conducting mitigation activities (preserving and accepting non-damaged lading, salvage and disposal). The customer is responsible for coordination, contracting and payment for all mitigation activities, including but not limited to:

  • Inspection​
  • Re-stacking
  • Repairing​
  • Salvage​
  • Dumping/Disposal

All receipts must be retained for mitigation activities for filing a freight claim in the event your company opts to do so.  

Onsite Mitigation Not Possible

Please do not release a loaded rail car without communicating billing instructions to the delivering rail carrier. Releasing a loaded rail car without proper billing is a dangerous safety violation that potentially puts customers, rail employees and our communities at risk.

For expedient and safe disposition of the shipment, contact the delivering railroad carrier and provide an official statement of how your company would like to proceed, as follows:

  1. Mitigate the load at current location.
  2. Waybill to a local location (which is safely away from other product) to mitigate. Customers who select this option should include the new billing instructions so that the railroad can bill the rail car to the desired location.
  3. Waybill the rail car as a reverse route back to the Shipper to mitigate; receiver/shipper must coordinate agreement for this option.

Steps to Take Before Contacting Rail Carrier About Mitigation

Union Pacific Ramp/Terminal

  • Take multiple photos of the product condition from various angles in the rail car and the exterior of the rail car, include the rail car identification number.
  • Submit an online Damage Notice (user ID and password required), include a description of the situation and attach photos.

Non-Union Pacific Ramp/Terminal

  • Take multiple photos of the product condition from various angles in the rail car and the exterior of the rail car, include the rail car identification number.
  • Notify the delivering railroad of the damage by contacting the carrier’s customer service center, claims office or local yard office.
  • Obtain a copy of the carrier’s damage report, inspection form or a response waiving the right to inspect.

Lading Contamination 

Suspected contamination does not relieve customers from mitigation responsibilities and third-party lab records must be retained to provide proof of contamination.

Non-Approved Load Rejections

Rejected loads that do not follow the proper process (considered Abandoned Loads) are prohibited and may limit the customer's opportunity to recollect for commodity damage/loss. Reimbursement may be limited to actual salvage proceeds. 

Approved Contractor for Load Adjustments

To find a list of Union Pacific approved contractors that provide services for transfers, load adjustments, or inoperable rail car doors - hatches – gates, learn more now.