In the United States, interstate truck shipments are governed not by an international convention but by a federal statute, the Carmack Amendment, now codified for motor carriers at 49 U.S.C. § 14706. Its starting point is generous to shippers: the carrier pays your actual loss. In practice, most less-than-truckload (LTL) freight moves on released rates that cap liability at a few dollars per pound.
The starting point: actual loss
A motor carrier must issue a receipt or bill of lading, and the carrier (and any delivering carrier) is liable "for the actual loss or injury to the property" caused by the receiving carrier, the delivering carrier, or any carrier over whose line the property is transported (§ 14706(a)(1)). Carmack also reaches a shipment from the US "to an adjacent foreign country" when transported under a through bill of lading, so many US-Canada and US-Mexico truck moves can fall within it. cross-border scope depends on the facts and the court
The Supreme Court summarised the shipper's burden in Missouri Pacific R. Co. v. Elmore & Stahl, 377 U.S. 134 (1964), a rail case under the original Carmack provision: the shipper makes out a prima facie case by showing "delivery in good condition, arrival in damaged condition, and the amount of damages". The burden then shifts to the carrier to prove both that it was free from negligence and that the damage was caused by an excepted cause: an act of God, the public enemy, the act of the shipper, public authority, or the inherent vice or nature of the goods.
Carmack is largely the exclusive remedy for interstate shipments: courts have generally held that it pre-empts state-law claims against carriers for loss or damage. scope of pre-emption varies by circuit
Released rates: how carriers limit liability
Section 14706(c)(1)(A) lets a carrier "establish rates for the transportation of property (other than household goods ...) under which the liability of the carrier for such property is limited to a value established by written or electronic declaration of the shipper or by written agreement between the carrier and shipper if that value would be reasonable under the circumstances surrounding the transportation."
In practice, carrier tariffs often set a default limit per pound (for example by freight class or for used goods), and offer full-value or "excess value" coverage for an additional charge. The figures are carrier-specific; we do not publish industry averages because they vary widely. Check the tariff and the bill of lading for your shipment.
If a carrier is not required to file its tariff with the Surface Transportation Board, it must provide the shipper, on request, "a written or electronic copy of the rate, classification, rules, and practices upon which any rate applicable to a shipment, or agreed to between the shipper and the carrier, is based" (§ 14706(c)(1)(B)).
When is a limitation valid?
Federal courts have developed tests for an enforceable limitation, typically requiring that the carrier maintained a tariff, gave the shipper a reasonable opportunity to choose between levels of liability, obtained the shipper's agreement to the choice, and issued a proper bill of lading. The exact formulation differs between circuits. we have not verified the current test in each circuit If you sign a bill of lading with a released value, or one that incorporates a tariff limit, assume the limit will be enforced.
Household goods are different
Household goods moves have their own rules. Unless the shipper waives it in writing, a household goods carrier's maximum liability is the replacement value of the goods, subject to a maximum equal to the declared value of the shipment and to Surface Transportation Board rules and tariffs (§ 14706(f)(2)). Released rates do not apply to household goods unless the shipper waives full-value liability in writing (§ 14706(f)(3)). Our calculator does not model household goods.
Deadlines
- Claim: a carrier may not provide a period of less than 9 months for filing a claim (§ 14706(e)(1)). Most bills of lading use exactly 9 months, so treat that as your deadline.
- Lawsuit: a carrier may not provide less than 2 years for bringing a civil action, counted from the date the carrier gives the claimant written notice that it has disallowed any part of the claim (§ 14706(e)(1)).
- An offer of compromise, or a communication from an insurer, does not count as a disallowance unless the carrier informs the claimant in writing of the disallowance and the reasons for it (§ 14706(e)(2)).
- Claim handling: under 49 C.F.R. Part 370, a carrier must acknowledge a claim in writing within 30 days (unless it has paid or declined it by then) (§ 370.5), and pay, decline or make a firm compromise offer in writing within 120 days; if it cannot, it must send a written status update at 120 days and every 60 days after (§ 370.9).
What a written claim should contain
49 C.F.R. § 370.3 describes a claim as a written or electronic communication that contains facts sufficient to identify the shipment, asserts liability for the loss or damage, and makes a claim for payment of a specified or determinable amount. Include the bill of lading, the delivery receipt with exceptions noted, the invoice, photos and repair or replacement costs.
A quick example
An 800 kg (about 1,764 lb) pallet load of electronics worth US$40,000 is destroyed in a truck accident.
- With no released rate: the carrier is liable for actual loss, US$40,000 (subject to proof).
- Under a released rate of, say, US$1.00 per pound: limit about US$1,764, a gap of more than US$38,000.
Run it yourself: full value versus released at US$1/lb. The released rate used in the calculator is an illustrative input, not an industry figure. Full numbers are in our worked example.
Practical tips
- Read the bill of lading before tender: look for a "declared value" box or a reference to a tariff limit.
- If you book through a broker, ask which motor carrier will actually haul the load and on what terms. Section 14706 imposes liability on carriers; whether a broker is liable depends on its role and the contract. broker liability is fact-specific
- Note every exception on the delivery receipt; "subject to inspection" is weak.
- File the written claim well within 9 months and keep proof of filing.
- For valuable freight, compare the carrier's excess-value charge with cargo insurance.