Declared Value
Declared value is the monetary worth a shipper assigns to a freight shipment on the bill of lading, which establishes the upper limit of carrier liability for loss or damage during transit. When a shipper declares value above the carrier standard released value, the carrier assumes greater liability in exchange for an additional charge, typically calculated as a percentage of the declared amount or a per-pound rate applied to the higher value.
Why it matters
Declared value is the mechanism that increases carrier liability above the default released value floor. Without declaring value, a shipper relying on carrier liability alone may recover only pennies on the dollar for a high-value loss. Declaring value is not insurance, it is a contractual increase in the carrier maximum payout per claim. The charge for declared value varies by carrier but typically ranges from $0.50 to $2.00 per $100 of declared value, which can be cost-effective for moderate-value freight but expensive for very high-value goods.
When to use it
Declare value on the BOL when the freight replacement cost exceeds what released value would cover and you want the carrier to bear the additional liability. This is common for electronics, machinery, finished consumer goods, and any freight where the per-pound value is high. Compare the cost of declared value against third-party cargo insurance rates, because all-risk cargo policies are often cheaper and provide broader coverage than carrier declared value, especially for high-value shipments.
How Warp thinks about it
Warp supports declared value on shipments where shippers need liability above the standard level. The per-pallet pricing model already reduces damage probability through fewer handling events, but for high-value freight, declared value provides an additional layer of financial protection. Shippers can specify declared value at booking through the Warp platform or API.
Frequently asked questions about declared value
What is declared value?
Declared value is the monetary worth a shipper assigns to a freight shipment on the bill of lading, which establishes the upper limit of carrier liability for loss or damage during transit. When a shipper declares value above the carrier standard released value, the carrier assumes greater liability in exchange for an additional charge, typically calculated as a percentage of the declared amount or a per-pound rate applied to the higher value.
Why does declared value matter in freight?
Declared value is the mechanism that increases carrier liability above the default released value floor. Without declaring value, a shipper relying on carrier liability alone may recover only pennies on the dollar for a high-value loss. Declaring value is not insurance, it is a contractual increase in the carrier maximum payout per claim. The charge for declared value varies by carrier but typically ranges from $0.50 to $2.00 per $100 of declared value, which can be cost-effective for moderate-value freight but expensive for very high-value goods.
When should you use declared value?
Declare value on the BOL when the freight replacement cost exceeds what released value would cover and you want the carrier to bear the additional liability. This is common for electronics, machinery, finished consumer goods, and any freight where the per-pound value is high. Compare the cost of declared value against third-party cargo insurance rates, because all-risk cargo policies are often cheaper and provide broader coverage than carrier declared value, especially for high-value shipments.
How does Warp handle declared value?
Warp supports declared value on shipments where shippers need liability above the standard level. The per-pallet pricing model already reduces damage probability through fewer handling events, but for high-value freight, declared value provides an additional layer of financial protection. Shippers can specify declared value at booking through the Warp platform or API.