Packaging Mistakes that Cost You: How to Prevent Damaged Goods and Denied Claims

Even the best shipping operation can be undone by one overlooked detail: packaging.

In the world of less-than-truckload (LTL) shipping, packaging isn’t just about appearances—it’s the  frontline defense against costly damages and freight claims. For businesses striving to protect their goods and preserve customer trust, getting packaging right is essential. 

When Packaging Goes Wrong 

The effects of poor packaging stretch far beyond a dented box or scratched pallet. Inadequate protection can mean damaged goods, delivery refusals, and even, rejected claims. When these problems persist, it can unfortunately lead to dissatisfied customers and ultimately a loss of business. While it may be tempting to blame the carrier when freight arrives in bad shape, the truth often lies in how it was packed before it left the facility. 

Geoff Stephany, OD’s Director of Cargo Claims and Security for over a decade, sees it regularly. “First and foremost, improperly packaged freight is our number one issue,” he says.

The National Motor Freight Classification (NMFC) provides strict guidelines that define what constitutes acceptable packaging. “If the shipper packages their freight in accordance with NMFC recommendations, typically, there’s no issue.” 

Common Pitfalls That Lead to Claim Denials

One frequent offender? Crates that don’t meet NMFC specifications. “Item 245 of the NMFC outlines exactly how a crate should be built,” explains Stephany. If it falls short—even slightly—it might not qualify as a crate under the rules. That misstep alone can get a claim denied.

Real-world mistakes reinforce the financial risk. Stephany recalls an HVAC manufacturer whose freight was originally compliant—but after NMFC updated the rules to require three straps on overlength items, their two-strap packaging no longer passed. The result? A $16,000 claim that couldn’t be honored.

The takeaway is clear: Packaging must be built for the current NMFC guidelines, not last year’s version.

The Hidden Costs of Cutting Corners

Some shippers choose to take a risk, weighing packaging upgrades against potential claim costs.

Stephany often hears, “Doing that extra work will cost us more than the claims we’ve filed.” But focusing only on the immediate bottom line overlooks a critical factor—reputation.

Customers receiving damaged freight don’t just question the carrier. They question the shipper, too. Refused deliveries, damaged goods, and delayed operations leave lasting impressions.

That’s why the importance of proper packaging in logistics isn’t just about saving money—it’s about protecting customer relationships.

Best Practices to Protect Your Freight—and Your Reputation

So, how do you protect freight from damage in the LTL world? It starts with education and preparation.

1. Follow NMFC Guidelines Closely

These standards evolve—often multiple times per year—so staying current is non-negotiable. Shippers can contact interpretations@nmfta.org for packaging clarifications or consult packaging experts to ensure compliance.

2. Use Packaging Labs and Expertise

There are labs and universities across the country that test freight packaging.

ODFL even has in-house experts, like Erin Topper, a packaging specialist who helps build educational materials and support.

3. Leverage Carrier Resources

When Old Dominion denies a freight claim— they provide a detailed explanation. “We now include NMFC item numbers and failed packaging details when a claim is declined,” Stephany says.

This shift empowers shippers to correct mistakes rather than guess at solutions. ODFL also provides how-to videos, blog content, and tips for safe packing.

4. Choose Protection Over Minimalism

Balancing cost and protection is tricky. But cutting corners often leads to greater long-term losses.

Implementing protective packaging in logistics processes—from stronger pallets to reinforced crates—reduces damage and keeps freight claims at bay.

How Old Dominion Helps

Old Dominion believes in setting shippers up for success. In addition to providing best-in-class service and industry-leading claims prevention tools in transit, OD places an emphasis on shipper education.

Through lunch-and-learns, video resources, and in person guidance, ODFL goes beyond being just a carrier—it becomes a partner in problem prevention.

“We’re not here to trap anyone,” Stephany says. “We want to be a good partner. If we’re wrong, we own it. But we also want to help customers get it right before things go wrong.”

And while ODFL doesn’t set the NMFC guidelines, it ensures customers have access to the right tools and knowledge to comply with them.