Cargo Damage Rate
Percentage of shipments where cargo is damaged or lost in transit
What is Cargo Damage Rate?
Cargo damage rate is the percentage of shipments that suffer damage or loss. It shows how well goods are protected in transit.
Damage costs money in claims and replacements and hurts customer trust, so a low rate is a sign of careful handling.
How this KPI is measured
- Function
- Operations & Supply Chain
- Sub-function
- Service Quality
- Industry
- Logistics & Transport
- Type
- Lagging
- Impact
- Quality
- Unit
- %
- Measurement frequency
- Monthly
- Formula
- (Shipments with damage or loss / Total shipments completed) × 100
How to calculate it
Divide shipments with damage or loss by total shipments completed, and multiply by 100.
For example, if 45 of 3,000 shipments had damage or loss, the rate is 1.5%.
Record where and how damage occurs, and split by route, carrier and product type.
Where it is used
Reducing claims
Cut losses.
Choosing carriers
Compare performance.
Improving packaging
Protect products.
How to improve it
Tips and common mistakes
- Photograph damage on receipt for claims.
- Include lost as well as damaged shipments.
- Track cost of damage as well as number.
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