Cargo liability and declared value
Under the Carmack Amendment, the carrier is liable for actual loss of or damage to your cargo in interstate transit, up to the liability limit agreed when you book. If your cargo is worth more than the standard limit, you can declare a higher value at booking for a surcharge, or buy cargo insurance from an insurer.
Every shipper wants to know the same thing before booking: what happens if something goes wrong. This guide explains who is responsible for loss and damage in transit, how the liability limit works, what the declared value option at booking adds, and how to file a claim. It covers interstate shipments, which federal law governs.
What the carrier is liable for
The Carmack Amendment, 49 U.S.C. 14706, makes the motor carrier that issues the bill of lading liable for the actual loss or injury to the property it carries. It is a single national system, and it is the main route to recovery for a shipper whose cargo is lost or damaged in interstate transit.
The carrier is not an absolute insurer. The Supreme Court has held that a carrier is liable for damage to goods unless it can show the damage was caused by one of five things:
- An act of God, such as a flood or tornado
- The public enemy
- An act of the shipper, such as poor packing or loading by the shipper
- Public authority, such as a lawful seizure
- The inherent vice or nature of the goods
The burden is on the carrier. To avoid liability it has to prove both that it was not negligent and that one of those causes did the damage. For a shipper, the starting point is simple: show the cargo was handed over in good condition and arrived damaged or did not arrive, and show the amount of the loss.
Released value: the liability limit
Carmack lets a carrier limit its liability to a value set by the shipper's written or electronic declaration, or by written agreement, when the rate depends on that value. This is called released value. The carrier charges a lower rate, and its liability for the shipment is capped at the agreed value.
Our standard liability limit is shown on the booking page before you pay, and it is printed on the bill of lading. For most loads it is enough. For high-value cargo, it may not be.
The declared value option at booking
When you book with Ryecroft Freight, you choose between two levels of liability:
- Standard liability. No extra charge. Our liability is capped at the standard limit shown on the booking page.
- Declared value. You enter the full replacement value of the cargo, up to the maximum shown on the booking page. Our liability rises to that value, and you pay a surcharge calculated as a percentage of the value above the standard limit, with a minimum fee. The booking page shows the rate and the surcharge before you pay.
Declared value is a carrier liability rate, not an insurance policy. It raises the cap on what we owe when we are liable, and it does not change when we are liable. A loss from one of the five excepted causes, for example, is still not ours to pay. Your choice and the terms version you accepted are recorded with the booking.
| Option | What it covers | Who you claim against |
|---|---|---|
| Standard liability | Carrier-liable loss or damage, up to the standard limit | The carrier |
| Declared value | Carrier-liable loss or damage, up to the value you declared | The carrier |
| Cargo insurance | Whatever the policy covers, which can include losses the carrier is not liable for | Your insurer |
Cargo insurance from an insurer
The other route is a cargo insurance policy you buy yourself from an insurance company, for a single shipment or for all your shipments. Depending on its terms, a policy can cover losses that carrier liability does not, such as weather damage. Read the policy for exclusions, deductibles and how the goods must be packed, and buy it before the cargo moves.
Some shippers use both: declared value up to our maximum, and insurance for the rest.
Loads carried by a partner carrier
Outside our own lanes, a load can be carried by a vetted partner carrier, named on your booking before pickup. On those loads, the partner is the carrier, and its liability terms and cargo insurance apply. We check the partner's insurance certificate before tendering the load. If you need a declared value on a partner-carried load, ask dispatch before you book.
How to file a claim
A claim has to be in writing. Under the federal claims rules it must:
- Give enough facts to identify the shipment, such as the booking or bill of lading number
- Say that you hold the carrier liable for the loss, damage or delay
- Ask for payment of a specific amount, or an amount that can be worked out
Send it to [email protected] with photos, the delivery receipt, and invoices or repair estimates that support the amount. A damage note on the delivery receipt is important evidence, but on its own it is not a claim.
Claim timelines
| Step | Deadline |
|---|---|
| You file the written claim | Within 9 months of delivery, or of the date delivery should have happened for a lost shipment |
| Carrier acknowledges it | Within 30 days of receiving it, unless already paid or declined |
| Carrier pays, declines or makes a firm offer | Within 120 days of receiving it |
| Status updates while still open | At 120 days, then every 60 days |
| You file suit, if needed | At least 2 years from the carrier's written notice declining the claim |
Tips that make a claim easier
- Take photos at pickup. Every side of the cargo, the packaging and the securement, with the date visible.
- Inspect before you sign. Check the cargo with the driver present at delivery.
- Write damage on the delivery receipt. Be specific: "crate 3 crushed at corner, unit dented", not "damaged".
- Keep the damaged goods and packaging until the claim is settled, so they can be inspected.
- File early. Nine months is the outer limit, not a target. Evidence is easier to gather in the first weeks.
Our terms of service set out the liability terms in full, and our credentials page lists our insurance. When you are ready, the booking page shows the standard limit, the declared value rate and the maximum before you pay.
Common questions
Is declared value the same as insurance?
No. Declared value raises the limit of our liability as the carrier, and you pay a surcharge for the higher limit. It does not create an insurance policy, and it does not cover losses the carrier is not liable for under the law.
If I declare a value, will I be paid that amount after a loss?
You are paid your actual loss, up to the declared value. If a $40,000 load is declared at $40,000 and half of it is damaged, the claim is for the damaged half, supported by invoices or repair estimates.
My cargo is worth more than the maximum declared value. What now?
Contact dispatch before you book. We can review the load, or you can buy cargo insurance from an insurer for the amount above our maximum.
Can I add declared value after booking?
Declared value is chosen at booking because it changes the rate, and the choice is recorded with your booking. If the value of your cargo changes before pickup, contact dispatch before the truck is dispatched.
How long do I have to sue if a claim is declined?
A carrier may not give you less than two years from the date it gives written notice that it has disallowed any part of the claim.
Sources
- 49 U.S.C. 14706: Liability of carriers under receipts and bills of lading (Cornell LII)
- Missouri Pacific R. Co. v. Elmore & Stahl, 377 U.S. 134 (1964) (Cornell LII)
- J.J. Keller: Cargo liability and the Carmack Amendment
- 49 CFR 370.3: Filing of claims (Cornell LII)
- 49 CFR 370.5: Acknowledgment of claims (Cornell LII)
- 49 CFR 370.9: Disposition of claims (Cornell LII)
This guide is general information, not legal, tax or insurance advice. Rules and prices change; your online quote shows the current price for your load.