Dive Brief:
- Estes Express Lines used to pay $30 million a year in claims damages, but a revamped bonus program has helped reduced claims by close to 80% compared to a decade ago, President and COO Webb Estes told Trucking Dive in an interview Wednesday.
- Damages in 2025 fell to $14 million, while bonuses given to employees for claims bonuses totaled $11 million, he said, noting those figures were from memory.
- “My goal this year — and I don't know if we're going to hit it, but it's going to be close — is if we could actually pay out more in claims bonus to our people than to our customers,” he said, highlighting the multiplier effects of damage-free goods for both customers and Estes.
Dive Insight:
LTL carriers frequently highlight their commitments and ability to to deliver freight without damages, with Old Dominion Freight Line and XPO, for example, recently noting their minimal amounts of claims.
In Q2, Old Dominion reported a 0.1% claims ratio, while XPO’s fell below 0.2%, setting a quarterly record for the company.
Estes also describes itself as a top performer in this key metric, saying on its website that it safely handles millions of shipments annually. Among its premium services, Estes also provides a damage-free guarantee.
Investing in its workforce has made a difference. Estes’ president and COO noted the carrier’s driver turnover rate is under 10%, and dock worker turnover has decreased by over 65% from a peak in 2022 as the company has improved pay and training.
“Our labor force is really engaged,” Estes said, “and we love getting to celebrate them and do good work.”
