By Luis Lopez, founder of Freight Hub Corp and host of the Freight Guru Podcast
If you ship, broker or haul freight across state lines by truck, one federal statute decides who pays when cargo is lost or damaged. It is called the Carmack Amendment, and most people in our industry have heard the name without ever reading what it says. That gap is where a lot of cargo lawsuits come from.
Here is the plain-English version, written for the people who actually deal with claims: shippers, dispatchers, brokers and small fleet owners.
What Is the Carmack Amendment?
The Carmack Amendment is the section of federal law (49 U.S.C. 14706) that sets motor carrier liability for interstate shipments of goods. It dates back to 1906, and its purpose was to give shippers one uniform rule instead of fifty different state laws.
The core idea is simple: a carrier that issues a bill of lading for an interstate shipment is liable for the actual loss or injury to the property. The shipper does not have to prove the carrier was negligent.
What the Shipper Has to Prove
To make a claim under Carmack, the claimant has to establish three things:
- The freight was tendered to the carrier in good condition.
- It was delivered damaged, short, or not delivered at all.
- The dollar amount of the loss.
This is why paperwork wins cargo claims. A bill of lading signed clean at pickup supports the first point. A delivery receipt with exceptions noted supports the second. Invoices and repair or salvage records support the third.
The Carrier’s Five Defenses
Once the shipper makes that showing, the burden shifts. The carrier can escape liability only by proving it was not negligent and that the damage was caused by one of five things:
- An act of God, such as a hurricane or flood
- An act of a public enemy
- An act or default of the shipper, such as improper packaging or loading
- An act of public authority, such as a government seizure or quarantine
- The inherent nature or vice of the goods, such as produce that spoils on its own timeline
For carriers, the shipper-fault defense is the one that comes up most. If the shipper loaded and sealed the trailer and the damage came from poor blocking and bracing the driver could not inspect, that matters. Note it on the bill of lading at pickup.
The Deadlines: 9 Months and 2 Years
Carmack sets minimum time limits that a carrier cannot shorten by contract:
- At least 9 months to file a written claim with the carrier.
- At least 2 years to file a lawsuit, measured from the date the carrier denies the claim in writing.
Federal claim regulations (49 CFR Part 370) also put duties on the carrier: acknowledge a claim within 30 days, and pay, decline, or make a firm settlement offer within 120 days.
In practice, do not wait nine months. File the claim in writing, with a specific dollar amount, as soon as you know the loss. A late or vague claim is the most common reason a valid loss goes unpaid.
How Liability Limits Work
Carmack’s default is full actual loss. But a carrier is allowed to limit its liability to a lower amount if the shipper agrees in writing and had a fair opportunity to choose a higher level of coverage, usually at a higher rate. This is where released-value rates, tariff limits, and the cents-per-pound caps on LTL shipments come from.
The practical lesson for shippers: read the carrier’s tariff and the limitation language in the rate confirmation or contract before you tender high-value freight. If the limit is $2 per pound and you are moving electronics, you have a gap that only cargo insurance or a negotiated higher limit will close.
Does Carmack Apply to Freight Brokers?
Generally, no. Carmack applies to motor carriers and freight forwarders. A true broker that only arranges transportation is not liable under the statute.
The line gets blurry when a broker holds itself out as the carrier, issues its own bill of lading, or promises to haul the freight itself. Courts look at how the company presented itself to the shipper, not just what its authority says. Brokers should make sure their paperwork, website and emails consistently describe them as arranging transportation.
What Carmack Preempts
Carmack is the exclusive remedy against an interstate motor carrier for cargo loss and damage. State-law claims such as negligence or breach of contract for the same loss are generally preempted. That cuts both ways: shippers get a predictable federal standard, and carriers are shielded from a patchwork of state claims and, in most cases, from punitive damages on a cargo loss.
Carmack does not cover purely intrastate moves, and ocean and air shipments are governed by different regimes entirely.
Practical Checklist
- Inspect at pickup and delivery, and write exceptions on the paperwork before signing.
- Take time-stamped photos of freight, seals and trailer condition.
- File claims in writing with a specific amount and supporting documents.
- Calendar the 9-month and 2-year deadlines the day the loss happens.
- Know the liability limit before the load moves, not after.
For the step-by-step claims process, see how to file a freight claim that actually gets paid, and for the bigger picture, my overview of the most common freight lawsuits.
About the author: Luis Lopez is a Miami-based logistics entrepreneur, the founder of Freight Hub Corp, and host of the Freight Guru Podcast.
This article is general information for the freight community, not legal advice. Talk to a transportation attorney about your specific situation.