Full explanation
Cargo liability refers to a motor carrier's legal responsibility for loss, damage, or delay of freight from the time it takes possession at origin until delivery at destination. Under the Carmack Amendment (49 USC §14706), carriers engaged in interstate commerce are presumptively liable for cargo loss or damage, with limited statutory exceptions (acts of God, public enemy, shipper fault, public authority, inherent vice of goods). Carriers can limit their liability through released-value rates in their bill of lading — a practice where shippers accept lower liability limits in exchange for reduced freight rates. Standard cargo insurance levels are: $100,000 per vehicle / $250,000 per occurrence for general freight carriers (FMCSA minimum). Many carriers maintain higher limits ($250,000-$1,000,000 per vehicle) to compete for higher-value freight. Cargo liability claims must typically be filed within 9 months of delivery (or reasonable delivery date) under the standard claim period.
Source: Cornell Law: Carmack Amendment
Frequently asked questions
What does the Carmack Amendment cover?
The Carmack Amendment (49 USC §14706) establishes carrier liability for cargo loss/damage in interstate shipments. It sets a uniform national standard, preempting state laws, and requires carriers to issue bills of lading acknowledging receipt of goods.
Can carriers limit their cargo liability?
Yes. Carriers can offer released-value rates where shippers accept lower liability limits (e.g., $0.50/lb) in exchange for reduced freight rates. The shipper must be given a choice between full liability and released value.
How do I file a cargo claim?
File a written claim with the carrier within 9 months of delivery (or expected delivery date). Include the bill of lading, proof of shipment value, inspection report documenting damage, and photos. Carriers have 30 days to acknowledge and 120 days to resolve.