What is the Carmack Amendment and how does it affect cargo claims?

The Carmack Amendment (49 U.S.C. 14706) is the federal law governing motor carrier liability for freight loss and damage in interstate commerce. Under Carmack, a carrier is presumed liable when freight taken in good condition arrives damaged or does not arrive at all. The carrier must prove one of five specific defenses to overcome that presumption: act of God, act of public enemy, act of the shipper, public authority, or inherent vice. If none of those defenses apply, the carrier is liable even if the cause was not negligence.

How long does a shipper have to file a cargo claim?

Under the Carmack Amendment, a claimant generally has nine months from delivery to file a written claim (or from the expected delivery date for a lost shipment). Some carriers shorten this window through bill of lading terms — check the BOL. A claim must be in writing and must identify the freight, describe the loss or damage, and state the amount claimed or that the amount will follow. Filing late — even by a day after the deadline — gives the carrier grounds to reject the claim entirely regardless of the underlying facts.

Should I note damage on the delivery receipt even if I am not sure the freight is damaged?

Yes. If there is any visible damage to packaging, shrink wrap, boxes, or the freight itself at delivery, note it on the delivery receipt or POD before signing. Use specific language: "1 pallet corner crushed, contents unknown" rather than "subject to inspection." A clean signature implies the freight was received in good condition. Notating visible damage at delivery preserves your ability to contest liability later; a clean signature on damaged freight creates a much harder dispute.

Does my cargo insurance cover all the freight I haul?

Not automatically. Standard cargo policies typically exclude certain commodity types (electronics, jewelry, pharmaceuticals, artwork), inherent vice, and improper shipper packing. Reefer breakdown is usually excluded unless a specific endorsement was added. Your policy may also have per-occurrence or per-load limits lower than the full value of a high-value shipment. Review your exclusion list before accepting specialty freight. Carmack liability still attaches to the carrier even when the cargo policy excludes the loss.

Guide

How to handle a cargo claim

A cargo claim is one of the most stressful situations in trucking, but the outcome often depends less on what happened and more on what you documented and when. Carriers who respond correctly in the first few hours after a damage event protect themselves far better than carriers who try to manage a claim after the fact. This guide covers what to do from the moment damage is discovered through the claim resolution process.

What qualifies as a cargo claim

A cargo claim is a formal demand against the carrier for loss or damage to freight while it was in the carrier's possession. The Carmack Amendment governs cargo liability in interstate trucking and establishes that carriers are generally responsible for the value of freight lost or damaged during transit, with limited exceptions. Common cargo claim triggers include:

Physical damage to freight — broken, wet, crushed, or contaminated
Short delivery — fewer pieces or pallets delivered than picked up
Temperature excursion on reefer loads — freight that was supposed to travel at a set temperature arrived outside that range
Theft or pilferage — freight stolen while in transit or from an unattended trailer
Delay damage — time-sensitive freight that was delivered too late to be sold or used

Understanding what category a claim falls into matters because the carrier defenses, insurance coverage triggers, and documentation requirements differ between loss, physical damage, temperature damage, and delay claims.

Step 1: Document everything at delivery (or discovery)

How a driver handles the moments at delivery determines how strong the carrier's position is in any dispute. The key actions:

Note exceptions on the delivery receipt before signing

If the receiver points out damaged, missing, or suspect freight during the unloading process, the driver must note those exceptions on the delivery receipt (often the same as or attached to the BOL) before signing it. An unqualified signature on a clean delivery receipt is the single most damaging mistake a driver can make when there is visible damage. It is treated as an acknowledgment that freight was delivered in good condition.

The exception note should be specific: "3 cartons crushed on pallet 4," not just "damaged." The more detail, the harder it is for the shipper or receiver to later claim that the damage was more extensive than what was noted.

Take photographs — before and during unloading if possible

Photograph the freight as it came off the truck. If you can photograph it before the receiver's crew unloads, do so. Once freight is moved off the trailer, documenting the state it was in becomes harder. Photos should show the trailer interior, the position of the freight, the damage itself, and the serial numbers or pallet counts if relevant.

Time-stamped photos on a phone are sufficient — the timestamp is important because it establishes when the photos were taken relative to delivery.

Do not leave without documentation

Get a copy of the signed delivery receipt with exceptions noted. If the receiver refuses to sign or insists on receiving the freight as-is without noting exceptions, document that refusal and its circumstances on your copy before you leave the facility.

Step 2: Report to your carrier or broker immediately

Cargo claim events should be reported the same day they are discovered — not at the end of the week, not after the driver gets home, not once the carrier has a chance to "figure out what happened." Delays in reporting create gaps in the timeline that work against the carrier's position in a dispute.

If you are leased to a carrier

Follow the carrier's incident reporting procedure exactly. Most carriers have a specific claims number or email to contact. The carrier's insurance is likely the primary policy that responds to the claim. Reporting late can affect the carrier's ability to investigate and can create problems with their insurer.

If you are your own authority

Contact your cargo insurance agent or insurer immediately. Most cargo policies require prompt notice of any occurrence that may give rise to a claim. Waiting weeks to report while trying to manage the situation directly with the shipper or broker is a common mistake — it can result in the insurer asserting late notice as a defense to coverage.

Also notify the broker on the load. The broker is often the intermediary between the shipper who is filing the claim and the carrier who must respond to it. Getting the broker involved early keeps the communication organized and creates a record of when you reported.

Step 3: Preserve evidence

Do not repair, discard, or move damaged freight without the insurer's permission. Adjusters and surveyors often need to inspect damaged freight to assess the claim. If freight is disposed of before an inspection, the carrier loses the opportunity to challenge the extent or cause of damage.

Keep all documents related to the load: the rate confirmation, BOL (both the version you picked up with and the signed delivery receipt), all photographs, any temperature recorder printouts from a reefer load, fuel receipts for route verification, and any communications with the shipper, receiver, or broker.

Step 4: Understand the claim amount and what it covers

When the shipper or broker presents a cargo claim, the amount demanded should be based on the actual value of the goods lost or damaged, not a retail or replacement price. Under the Carmack Amendment, cargo liability is typically limited to the invoice value of the goods plus the freight charges paid. Claims for consequential damages — a shipper claiming they lost a production run because the parts arrived damaged — are generally not recoverable from a carrier under Carmack.

Check your cargo policy for exclusions

Cargo insurance policies have exclusions. Common exclusions include:

Electronics, jewelry, or other high-value items without a specific endorsement
Refrigerated cargo spoilage due to mechanical breakdown vs. driver error
Freight loaded, counted, or sealed by shipper (SLOTC — Shipper Load and Count)
Theft from an unattended vehicle left unlocked or in a prohibited area
Inherent vice — freight that deteriorated due to its own nature, not external cause

Review your policy before responding to a claim demand. If an exclusion applies, your insurer needs to make that determination, not you directly to the shipper.

Step 5: Respond within the required timeframe

Under the Carmack Amendment, a shipper must file a written cargo claim within nine months of delivery (or in the case of non-delivery, within nine months of expected delivery). The carrier then has 30 days to acknowledge the claim in writing and 120 days to pay, deny, or make a settlement offer — though the specific timeline can be modified by the bill of lading terms.

Do not ignore a cargo claim notice. Carriers who fail to respond within the required period waive certain defenses. Even if you believe the claim has no merit, a written response that acknowledges receipt and opens a dialogue protects your rights better than silence.

Step 6: Work through the insurer for settlement

If the claim involves your cargo insurance policy, let the insurer handle the settlement negotiation once the claim has been reported. Making informal settlement promises directly to the shipper or broker before the insurer is involved can create problems. The insurer has the right to investigate, challenge claim amounts, and manage the resolution process.

If the claim is below your deductible, you may be handling it out of pocket without insurer involvement. In that case, document the settlement agreement in writing — an email confirmation of the agreed amount, what it covers, and that payment resolves the claim fully is sufficient to protect against a later attempt to reopen the dispute.

Common mistakes that make claims worse

Signing a clean delivery receipt when there is visible damage. This is the most costly documentation mistake in trucking. Once signed clean, the carrier has accepted that freight was delivered in good order, and the claim becomes a dispute about when damage occurred.
Not photographing damage at delivery. Without photos, "he said / she said" disputes about the state of freight at delivery are difficult for the carrier to win.
Waiting days or weeks to report to the insurer. Late reporting is a coverage defense. Report immediately, even if you do not yet know the full extent of the claim.
Disposing of damaged freight before an adjuster inspects it. Once the evidence is gone, the carrier loses the ability to challenge the cause or extent of the loss.
Making verbal settlement promises before the insurer is involved. Informal commitments to "make it right" directly to the shipper can undercut the insurer's ability to negotiate and can create disputes about what was agreed.
Not keeping a complete load document file. A cargo claim that arises months after a delivery requires the carrier to reconstruct the facts from whatever they kept. Carriers who file and retain BOLs, delivery receipts, and rate confirmations are in a much stronger position than carriers who do not.

When freight is damaged but the cause is disputed

Some cargo claims involve a genuine dispute about when or how damage occurred — freight that was already damaged at pickup but not noted on the BOL, or damage that occurred during unloading rather than transit. These situations require the carrier to reconstruct the chain of custody using the BOL at origin, any pickup notes, and the delivery documentation.

If damage was present at pickup and not noted on the BOL, the carrier accepted the freight without exception and has difficulty arguing the damage was pre-existing. The practical lesson: take pickup exception notes and photos as seriously as delivery notes. A driver who documents pre-existing damage at pickup has a defensible position. A driver who does not is starting the load with a potential claim already in motion.

This guide explains general cargo claim procedures for orientation purposes. Cargo liability, insurance coverage, and claim requirements vary by policy, contract, bill of lading terms, and jurisdiction. Consult a transportation attorney or claims professional for specific situations.

Common questions

What is the Carmack Amendment and how does it affect cargo claims?: The Carmack Amendment (49 U.S.C. 14706) is the federal law governing motor carrier liability for freight loss and damage in interstate commerce. Under Carmack, a carrier is presumed liable when freight taken in good condition arrives damaged or does not arrive at all. The carrier must prove one of five specific defenses to overcome that presumption: act of God, act of public enemy, act of the shipper, public authority, or inherent vice. If none of those defenses apply, the carrier is liable even if the cause was not negligence.
How long does a shipper have to file a cargo claim?: Under the Carmack Amendment, a claimant generally has nine months from delivery to file a written claim (or from the expected delivery date for a lost shipment). Some carriers shorten this window through bill of lading terms — check the BOL. A claim must be in writing and must identify the freight, describe the loss or damage, and state the amount claimed or that the amount will follow. Filing late — even by a day after the deadline — gives the carrier grounds to reject the claim entirely regardless of the underlying facts.
Should I note damage on the delivery receipt even if I am not sure the freight is damaged?: Yes. If there is any visible damage to packaging, shrink wrap, boxes, or the freight itself at delivery, note it on the delivery receipt or POD before signing. Use specific language: "1 pallet corner crushed, contents unknown" rather than "subject to inspection." A clean signature implies the freight was received in good condition. Notating visible damage at delivery preserves your ability to contest liability later; a clean signature on damaged freight creates a much harder dispute.
Does my cargo insurance cover all the freight I haul?: Not automatically. Standard cargo policies typically exclude certain commodity types (electronics, jewelry, pharmaceuticals, artwork), inherent vice, and improper shipper packing. Reefer breakdown is usually excluded unless a specific endorsement was added. Your policy may also have per-occurrence or per-load limits lower than the full value of a high-value shipment. Review your exclusion list before accepting specialty freight. Carmack liability still attaches to the carrier even when the cargo policy excludes the loss.