Most shippers have never read the Carmack Amendment, but every interstate motor carrier shipment in the United States moves under it whether the bill of lading mentions it or not. It’s the federal law that governs a carrier’s liability for loss or damage to freight, and understanding the basics changes how you think about insurance, declared value and what to do when a shipment arrives short or damaged.
What the Carmack Amendment actually does
Passed in 1906 and amended since, the Carmack Amendment (49 U.S.C. § 14706) makes an interstate motor carrier liable for the actual loss or damage to goods it transports, largely regardless of fault, with a short list of exceptions. It also preempts most state-law claims for cargo loss or damage, which is why a shipper’s recovery options for a damaged interstate shipment are narrower, and more standardized, than people often expect.
The exceptions carriers can rely on
Carmack liability isn’t absolute. A carrier can generally avoid liability for loss or damage caused by:
- An act of God or the public enemy
- An act of the shipper itself, such as improper packaging
- The inherent nature of the goods (spoilage of unrefrigerated perishables, for example)
- Public authority (a shipment seized or held by a government agency)
What limits how much you can recover
Carriers can lawfully limit their liability below full value, but only if the shipper was given a genuine choice between different liability levels at different rates, and the limitation is properly documented on the bill of lading. This is why the declared value on your paperwork matters: if you don’t declare a higher value and pay the applicable rate for it, your recovery on a damaged shipment may be capped well below what the goods were actually worth.
What to do if something goes wrong
- Note any visible damage or shortage on the delivery receipt at the time of delivery, not after
- Send written notice of the claim to the carrier as soon as possible
- Keep photos, the original bill of lading, and any inspection reports together
- File within the time limit set in your carrier agreement, typically nine months from delivery for filing and two years for a denied claim to be pursued further
How Navorex helps
We document condition at pickup and delivery on every shipment, and if a claim does come up, our team helps you file it correctly and track it through to resolution under the Carmack Amendment, instead of leaving you to navigate it alone.