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Freight Glossary

Carmack Amendment

The Carmack Amendment is a federal statute within the Interstate Commerce Act that governs carrier liability for loss or damage to goods during interstate shipment. It establishes a uniform national standard: the carrier that accepts freight is presumptively liable for any loss or damage that occurs between pickup and delivery. The shipper does not need to prove negligence. The shipper must prove the goods were in good condition at origin, arrived damaged or short, and state the amount of damages. The burden then shifts to the carrier to prove it falls within one of the limited defenses: act of God, public enemy, act of the shipper, public authority, or inherent vice of the goods.

Why it matters

Carmack defines the ceiling and floor of carrier liability for every interstate freight shipment in the US. The declared value on the bill of lading sets the maximum recovery, not the invoice value or replacement cost. Shippers who leave declared value blank or accept a released value limitation in the carrier tariff cap their recovery at whatever that limitation states, often $0.50 per pound. For a 500-pound pallet of electronics worth $8,000, that means a maximum recovery of $250 without a declared value. Understanding Carmack is essential before shipping anything where the freight value exceeds the default released value.

When to use it

Carmack applies automatically to every interstate shipment by motor carrier. Shippers should engage with it at three points: before shipping (declare the correct value on the BOL and understand the carrier tariff released value limitations), at delivery (inspect freight and note any damage on the delivery receipt before signing), and when filing a claim (file written notice within 9 months of delivery, include BOL, delivery receipt, damage photos, and proof of value). Missing any of these windows weakens or eliminates recovery rights.

How Warp thinks about it

Warp provides digital proof of delivery with timestamped photos at pickup and delivery, giving shippers independent documentation of freight condition at both handoff points. Orbit tracking creates a continuous chain of custody record. When a claim arises, this digital evidence trail supports the shipper documentation requirements under Carmack without relying on paper PODs or driver recollection.

Carrier liability

Carmack sets the rules for who pays when freight is lost or damaged.

Default rule

Carrier is presumptively liable

The shipper only needs to prove good condition at origin, damage at delivery, and the amount of loss.

Key limitation

Declared value caps recovery

The BOL declared value, not invoice or replacement cost, is the maximum the carrier owes under Carmack.

Filing deadline

9 months from delivery

Written claims must be filed within 9 months. After that, the right to recover is gone regardless of fault.

Frequently asked questions about carmack amendment

What is carmack amendment?

The Carmack Amendment is a federal statute within the Interstate Commerce Act that governs carrier liability for loss or damage to goods during interstate shipment. It establishes a uniform national standard: the carrier that accepts freight is presumptively liable for any loss or damage that occurs between pickup and delivery. The shipper does not need to prove negligence. The shipper must prove the goods were in good condition at origin, arrived damaged or short, and state the amount of damages. The burden then shifts to the carrier to prove it falls within one of the limited defenses: act of God, public enemy, act of the shipper, public authority, or inherent vice of the goods.

Why does carmack amendment matter in freight?

Carmack defines the ceiling and floor of carrier liability for every interstate freight shipment in the US. The declared value on the bill of lading sets the maximum recovery, not the invoice value or replacement cost. Shippers who leave declared value blank or accept a released value limitation in the carrier tariff cap their recovery at whatever that limitation states, often $0.50 per pound. For a 500-pound pallet of electronics worth $8,000, that means a maximum recovery of $250 without a declared value. Understanding Carmack is essential before shipping anything where the freight value exceeds the default released value.

When should you use carmack amendment?

Carmack applies automatically to every interstate shipment by motor carrier. Shippers should engage with it at three points: before shipping (declare the correct value on the BOL and understand the carrier tariff released value limitations), at delivery (inspect freight and note any damage on the delivery receipt before signing), and when filing a claim (file written notice within 9 months of delivery, include BOL, delivery receipt, damage photos, and proof of value). Missing any of these windows weakens or eliminates recovery rights.

How does Warp handle carmack amendment?

Warp provides digital proof of delivery with timestamped photos at pickup and delivery, giving shippers independent documentation of freight condition at both handoff points. Orbit tracking creates a continuous chain of custody record. When a claim arises, this digital evidence trail supports the shipper documentation requirements under Carmack without relying on paper PODs or driver recollection.