Shipper's Guide to Filing Freight Claims
When freight arrives damaged, lost, or short, someone needs to file a claim. Under the Carmack Amendment, carriers are strictly liable for cargo in their possession. This guide covers everything shippers and consignees need to know about the claims process.
Key Takeaways
- The Carmack Amendment (49 USC 14706) makes carriers strictly liable for cargo loss, damage, or delay in interstate commerce.
- You have a minimum of 9 months from delivery to file a written claim, and at least 2 years from a denial to file suit.
- A complete claim needs the bill of lading, proof of delivery noting the exception, proof of value, and dated damage photos.
- Recovery is the actual value of the goods at destination minus salvage, unless a written released-value or limited-liability tariff caps it.
- Freight charges and cargo claims are separate obligations, so pay the freight bill on time and pursue the claim independently.
- Note all visible damage or shortage on the POD before signing, and report concealed damage in writing within about 5 days of discovery.
Ahmad Qazi
Founder & CEO, O Trucking LLC
Fact-Checked by O Trucking Dispatch Team
5+ years managing freight claims documentation and defense
Written by Ahmad Qazi, founder of O Trucking LLC, drawing on 9+ years dispatching for owner-operators. Learn more about us.
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When to File a Freight Claim
A freight claim should be filed whenever cargo is damaged, lost, or delivered short. The shipper or consignee (depending on FOB terms) files the claim against the carrier. Common situations include:
Visible Damage at Delivery
Crushed boxes, broken pallets, water damage, punctured packaging, or shifted loads observed when the trailer doors open. The consignee should note all damage on the proof of delivery before signing.
Shortage at Delivery
Fewer pieces delivered than listed on the bill of lading. Count at delivery, note the shortage on the POD, and retain the BOL showing the original count.
Temperature Excursion
Reefer loads that arrive outside the required temperature range. Document the temperature at delivery, request reefer unit download data, and photograph the temperature reading on the unit.
Total Loss or Non-Delivery
Freight that never arrives or is delivered to the wrong location. File the claim based on the expected delivery date. Carrier liability covers the full value of the lost goods.
The Carmack Amendment: Carrier Liability Law
The Carmack Amendment (49 USC 14706) is the federal law governing carrier liability for freight damage in interstate commerce. It establishes that carriers are strictly liable for loss, damage, or delay to cargo from the point of pickup to the point of delivery.
Key Carmack Amendment Principles
Strict Liability
The carrier is liable for damage regardless of negligence. The claimant does not need to prove the carrier was at fault, only that goods were in good condition at pickup and damaged at delivery.
Five Defenses
Carriers can defend against claims only by proving: act of God, act of the public enemy, act of the shipper, public authority, or inherent vice (nature of the goods).
Full Value Liability
The carrier is liable for the full actual value of the freight unless a lower released value was agreed to in writing before shipment.
Preemption
The Carmack Amendment preempts state law claims for freight damage in interstate commerce. All claims must follow federal procedures.
Three Elements to Prove a Claim
Required Documentation for Freight Claims
A properly documented freight claim includes every piece of evidence proving the goods were damaged in transit and the value of the loss. Missing documentation is the most common reason claims are denied or delayed.
Written Claim Letter
Formal letter to the carrier stating the claim, describing the damage, and requesting a specific dollar amount. Must identify the shipment by BOL number, date, and parties.
Original Bill of Lading
The signed BOL from pickup showing freight was in good condition (or noting any pre-existing issues). This proves the carrier received the goods as described.
Delivery Receipt / POD
The proof of delivery with the consignee's notations of damage, shortage, or other exceptions. This proves the goods arrived in a different condition than when shipped.
Proof of Value
Invoice, purchase order, or other documentation proving the market value of the damaged or lost goods. The claim amount must be supported by actual dollar figures.
Photos of Damage
Timestamped photographs showing the condition of freight at delivery. Photos of packaging, the damaged items, and the trailer interior all strengthen the claim.
Inspection Report (if applicable)
For high-value claims, a third-party inspection report documenting the extent and cause of damage. Some carriers require independent inspections before claims are processed.
Time Limits and Deadlines
Freight claims have strict deadlines. Missing a deadline can permanently bar recovery regardless of how valid the claim is. Keep these timelines in mind from the moment damage is discovered.
| Deadline | Timeframe | Details |
|---|---|---|
| Filing the Claim | 9 months from delivery | Written claim to carrier with specific dollar amount |
| Carrier Acknowledgment | 30 days (recommended) | Carrier should acknowledge receipt within 30 days |
| Carrier Decision | 120 days (recommended) | Carrier should approve, deny, or offer settlement |
| Lawsuit After Denial | 2 years from denial | If claim is denied, lawsuit must be filed within 2 years |
| Concealed Damage Notice | 5 days from discovery | Not legally required but strongly recommended |
Do Not Wait Until the Last Minute
Concealed Damage
Concealed damage is damage that is not visible at the time of delivery but is discovered later when the freight is unpacked or inspected more closely. This is one of the most contested areas in freight claims because it is harder to prove the damage occurred during transit rather than after delivery.
Handling Concealed Damage
Notify the carrier in writing within 5 days of discovering the damage
Preserve the freight and packaging in its damaged condition for inspection
Photograph the damage, packaging, and any evidence of impact during transit
Request a joint inspection with the carrier if the value warrants it
File the formal written claim within the 9-month deadline
The 5-Day Rule Is Not Law, But It Matters
Claims Resolution Process
Once a freight claim is filed, both parties enter a resolution process. Understanding each stage helps set expectations and prepare for potential outcomes.
Claimant Files Written Claim
Submit claim letter with all supporting documentation to the carrier's claims department. Include a specific dollar amount and reference the BOL number.
Carrier Acknowledges Receipt
The carrier should acknowledge the claim within 30 days. If they do not, follow up in writing. Keep copies of all correspondence.
Investigation Period
The carrier investigates by reviewing the BOL, delivery notes, driver statements, and any photos. They may request additional documentation or an inspection.
Carrier Decision (Within 120 Days)
The carrier approves the claim in full, offers a partial settlement, or denies the claim with a written explanation of reasons.
Negotiation or Acceptance
If a partial settlement is offered, the claimant can negotiate, accept, or reject. Most freight claims are settled through negotiation rather than litigation.
Litigation (If Needed)
If the claim is denied and negotiation fails, the claimant has 2 years from the denial date to file a lawsuit under the Carmack Amendment in federal court.
How Much Can You Recover?
The Carmack Amendment makes carriers liable for the actual loss caused by the damage, not the retail price or replacement cost. For most freight that means the invoice or wholesale value of the goods at destination, minus any salvage value of the damaged items. Understanding how the recoverable amount is calculated keeps your claim demand realistic and harder for the carrier to discount.
Full Actual Value
By default the carrier owes the actual value of the goods, usually proven with the commercial invoice or purchase order. This is why proof of value is one of the required claim documents.
Released Value & Liability Limits
If a written released-value rate or an LTL carrier's limited-liability tariff applied, recovery is capped at the agreed amount per pound, often far below full value. Always check the rate confirmation and bill of lading for these limits before agreeing to a low rate.
Duty to Mitigate & Salvage
Claimants must take reasonable steps to limit the loss. If part of the shipment is usable or resalable, you are expected to recover that salvage value, and the carrier will deduct it from the payout. Document any salvage attempts.
Freight Charges Are Separate
You generally cannot withhold or offset the freight bill to cover a cargo claim, as the two are separate obligations. Pay the freight invoice on time and pursue the claim independently to avoid collection actions.
Example: How the Number Is Built
Common Freight Claim Mistakes to Avoid
- Signing a clean proof of delivery when damage or a shortage is visible, which makes it far harder to prove the goods arrived in bad condition.
- Withholding or offsetting the freight bill to cover the claim, which invites collection action because the two obligations are separate.
- Filing the claim against the broker instead of the motor carrier named on the bill of lading, since Carmack liability attaches to the carrier.
- Demanding retail or replacement price instead of the actual value at destination minus salvage, giving the carrier easy grounds to discount the claim.
- Discarding damaged goods or packaging before inspection, which destroys the evidence the carrier needs to verify the loss.
How Our Team Handles Freight Claims
Freight claims are a reality of the trucking business. Our approach is to prevent claims through proper documentation at pickup and to respond quickly and thoroughly when claims are filed against our carriers.
Prevention through documentation
We train every carrier to inspect freight, note exceptions on the BOL, photograph conditions at pickup, and record seal numbers on SLC loads. This documentation is the foundation for defending against claims. Prevention is always cheaper than paying claims.
Rapid claims response
When a shipper or consignee reports damage, we gather our carrier's documentation within 24 hours: BOL with exception notes, pickup and delivery photos, seal records, and driver statements. Quick response demonstrates professionalism and often leads to faster resolution.
We know the Carmack defenses
Our team understands the five Carmack Amendment defenses and knows when our carrier has grounds to dispute a claim. If the shipper improperly packaged freight or the damage is inherent to the goods, we build the defense case using the documentation collected at pickup.
Frequently Asked Questions
How long do I have to file a freight claim?
Under the Carmack Amendment, you have a minimum of 9 months from the delivery date (or expected delivery date for a lost shipment) to file a written claim with the carrier. After a claim is denied, you then have at least 2 years to file a lawsuit. Always file as early as possible, because evidence and witness memory degrade quickly.
How much can I recover on a freight claim?
Carriers are liable for the actual value of the goods at destination, not the retail or replacement price, minus any salvage value of the damaged items. If a written released-value rate or limited-liability tariff applied to the shipment, recovery is capped at that agreed amount per pound. You also have a duty to mitigate by accepting and reselling salvageable freight.
Do I still have to pay the freight charges if my shipment was damaged?
Generally yes. Freight charges and cargo claims are treated as separate obligations, so you cannot legally withhold or offset the freight bill to cover a damage claim. Pay the freight invoice on time, then pursue the cargo claim separately to avoid collection actions and protect your bargaining position.
What is the difference between a freight claim against a broker and against a carrier?
Carmack liability attaches to the motor carrier that physically transported the goods, not the broker that arranged the load. File the claim against the carrier named on the bill of lading. A broker is generally not liable for cargo damage unless it acted as the carrier or made specific contractual guarantees.
We Defend Against Freight Claims
Our dispatch team documents every pickup, manages claims communication, and builds defense cases using Carmack Amendment principles. Protect your bottom line.