Freight Claims Process Guide: 49 CFR 370 & Carmack

Legal framework: Carmack and 49 CFR 370

The Carmack Amendment, codified at 49 USC 14706, is the federal statute governing motor carrier liability for loss and damage to property transported in interstate commerce. It establishes that the receiving or delivering carrier is liable for actual loss or injury to the property. It also preempts most state-law theories of recovery against the carrier — meaning a Carmack claim is generally how the case proceeds.

The procedural mechanics live in 49 CFR Part 370, the Principles and Practices for the Investigation and Voluntary Disposition of Loss and Damage Claims. The key sections shippers should know:

• 370.3 — Filing of claims (written, minimum content).
• 370.5 — Acknowledgment of claims (30 days).
• 370.7 — Investigation of claims.
• 370.9 — Disposition of claims (120 days).
• 370.11 — Processing of salvage.

The timeline

Categories of claims

What a valid written claim must contain

Per 49 CFR 370.3, the minimum requirements for a written claim are:

1. In writing. Letter, email, or claim form — written and submitted to the carrier.
2. Identification of the shipment. BOL number, pro number, date of shipment, origin, destination.
3. Demand for a specified or determinable amount. A dollar figure, or a basis for calculation that yields a determinable amount.
4. Supporting documents. The bill of lading, evidence of freight charges, and the invoice or certified copy showing the property and value involved.

Specifically called out as insufficient on their own: bad order reports, appraisal reports of damage, and notations of shortage or damage on freight bills. These can support the claim but don’t replace a properly drafted written claim.

Documentation that wins claims

• Bill of lading with specific damage notation. “Two cartons crushed, contents broken” — not “damaged” generically. See our bill of lading guide.
• Photographs. Damage, packaging, the truck, the load configuration, the dock. Timestamped originals matter.
• Delivery receipt / POD. Showing the exceptions noted.
• Invoice or proof of value. What you paid or what it’s worth at wholesale.
• Repair estimates (for repairable damage). Reputable, itemized, current.
• Salvage documentation (for partial losses). What was sold for salvage and at what price.
• Freight invoice / charges paid. Linkage of the claim to the carrier’s transportation.
• Temperature log (for reefer claims). Reefer download showing temperature excursion.
• Witness statements (if applicable). Receiving personnel who observed delivery.
• Concealed damage notice (for concealed claims). Written notice to the carrier within the prompt window.

Carmack liability limits and the released-value provision

Carmack establishes carrier liability for “actual loss or injury to property” — but the BOL and tariff can lawfully limit liability through “released-value” provisions. A common LTL default is $25 per pound or $25,000 per shipment, whichever is less. On a 100-pound, $40,000 shipment, that default releases the carrier to $2,500 of liability.

Shippers can declare higher value on the BOL and (usually) pay an upcharge to raise the limit. The declared value at the time of shipment governs the claim, not what you wish you’d declared after the fact. If you ship freight worth substantially more than the released-value default, declare value and pay the upcharge. It’s cheaper than the litigation that follows otherwise.

Common reasons claims get denied

• BOL signed clean. No exceptions noted at delivery; carrier defends “you signed for it in good order.”
• Late filing. Written claim filed after the 9-month deadline.
• Insufficient documentation. No invoice, no value proof, no BOL.
• Excepted commodity defense. Some commodity classes have specific Carmack exceptions.
• Act of God / shipper’s act / public enemy / inherent vice. Classic Carmack defenses where the loss wasn’t caused by carrier negligence.
• Improper packaging. Shipper’s packaging inadequate for transportation; loss attributable to packaging not handling.
• Value not declared / released-value limit. Claim exceeds the BOL-released value.
• Concealed damage notice late. Damage not reported promptly after delivery for concealed claims.

Settlement and negotiation

Most claims settle. The carrier typically responds with a payment offer, a denial with reason, or a request for additional information. Be prepared to negotiate: starting points often discount for salvage value, declared value limits, and reasonable cause defenses.

If the offer is reasonable and the value modest, taking the settlement is usually the right call. If the offer is unreasonable on a substantial claim, consider escalating: written request for review, broker advocacy, claims-handling services, or attorney involvement. Carmack litigation is its own discipline; not every transportation attorney handles it.

The broker’s role in claims

Broker doesn’t hold primary Carmack liability for cargo — that’s the carrier. But a working broker is fully involved in the claims process: documenting the loss, helping draft the written claim, providing rate confirmation and BOL records, communicating with the carrier’s claims department, and escalating when responsiveness slips. ATI handles claims this way as a matter of course. See the broader broker vs carrier explanation.

If the carrier’s cargo insurance fails to pay a valid claim, broker contingent cargo coverage may respond. This is a meaningful safety net but isn’t a replacement for proper documentation and timely filing.

Insurance options shippers should consider

Three categories of additional cargo coverage shippers buy when the standard Carmack-released-value framework isn’t enough:

• Declared value upgrade on the BOL. Pay the carrier’s upcharge to raise the released-value limit on the specific shipment.
• All-risk cargo policy. Annual or per-shipment cargo policy with the shipper’s own insurer, naming specific limits and perils.
• Specialty cargo policies. Fine art, jewelry, high-value electronics, antiques — these often need supplemental coverage outside standard cargo policies.

What to do RIGHT NOW if you have a problem

1. Stop. Don’t sign anything you don’t mean to sign.
2. Inspect and document. Photographs, written notes, condition of packaging and contents.
3. Note exceptions on the BOL specifically. Or, for concealed damage, notify the carrier in writing immediately.
4. Retain the damaged goods and packaging. Don’t throw out anything until the claim is resolved.
5. Notify the broker (if applicable) and the carrier’s claims department.
6. Start the claim file. Begin assembling the documentation listed above.
7. File the written claim within the 9-month window. Don’t let the deadline slip while you’re “working on it.”

Related ATI freight resources

For NMFC classification on the underlying commodity: ATI freight class calculator.