How to Handle a Freight Claim (Damaged or Short Load)

You deliver a load and the consignee pulls back the doors to find boxes shifted, product damaged, or fewer pieces than the bill of lading shows. What happens next determines whether anyone gets compensated — or whether the carrier, broker, and shipper spend six months pointing at each other.

Freight claims are governed by federal law and have strict filing timelines. Miss a deadline, skip documentation, or fail to file with the right party, and a legitimate claim can be denied on procedural grounds regardless of who was at fault.

Here's how to handle it correctly from the moment damage is spotted.

The Legal Framework: The Carmack Amendment

Interstate freight liability in the U.S. is governed by the Carmack Amendment (49 U.S.C. § 14706). Under Carmack, a motor carrier is presumed liable for loss or damage to freight unless it can prove one of five legal defenses:

1. Act of God (weather event not reasonably foreseeable)
2. Act of public enemy
3. Act of the shipper (improper packing, mislabeled cargo)
4. Act of public authority (government seizure or quarantine)
5. Inherent vice of the goods (produce that spoils, fragile items with no packaging)

If none of those defenses apply, the carrier owes the shipper for the full actual loss — unless the carrier's bill of lading or tariff limits liability. Carriers can legally limit liability to a specific rate per pound (say, $0.50/lb or $1.00/lb) if the shipper had the option to declare a higher value for a higher rate and didn't. This is called a released rate limitation, and it must be clearly stated in the contract.

If you're the carrier on a load that got damaged, knowing this framework tells you what exposure you're looking at. If you're helping a shipper navigate a claim against a carrier you brokered, the same law applies.

Step 1: Document Damage at Delivery — Right Then

The single most important step happens at the delivery door. Do not leave without documenting.

• Note exceptions on the delivery receipt (POD). If the consignee signs a clean receipt — no exceptions, no noted damage — it creates a presumption that the freight arrived in good condition. That presumption can be overcome, but it's a fight. Get the damage noted on the POD before the consignee signs.
• Take photos and video. Shoot the damage to the cargo, the trailer interior showing how freight was positioned, any damage to packaging or pallets, and the seal or locking hardware if relevant.
• Don't move damaged freight. The shipper or insurer may want to inspect it. If the consignee is insisting on clearing the dock, at minimum get a written statement from them acknowledging the condition before moving anything.
• Capture the exact count. For a short load (fewer pieces than on the BOL), count what you actually delivered and have the consignee note the discrepancy on the POD. "Short 4 cartons" on the receipt is evidence.

No paperwork at pickup noting pre-existing damage? The default position is that the carrier received freight in the condition described on the BOL and is responsible for any change in that condition at delivery.

Step 2: Know the Filing Deadlines

Carmack sets minimum timelines, but carrier bills of lading often have shorter contractual deadlines. Missing either one can extinguish the claim.

Most large carrier tariffs and broker agreements impose a shorter window — 60 to 180 days is common. Check the bill of lading and any load confirmation language.

The written claim must be filed with the carrier, not the broker (unless the broker has contractual liability through a contingent cargo policy or specific agreement). Filing only with the broker and not the carrier can leave you outside the statute.

What a Written Freight Claim Needs to Include

A claim doesn't need to be formal legal language, but it must put the carrier on notice and establish the amount. At minimum, include:

• Your name, company name, and contact information
• The carrier's name and any MC or DOT number
• The load details: BOL number, pickup and delivery dates, origin and destination, description of freight
• A description of the loss or damage, including photos or a list of damaged items
• The claimed dollar amount and how you calculated it
• Copies of supporting documents: the BOL, delivery receipt with exceptions noted, invoices for the damaged goods, any repair estimates or salvage value information

Send it in writing — email with read receipt or certified mail — so you have a record of when it was submitted and received.

Step 3: Mitigate the Loss

Carmack requires the claimant to mitigate damages. That means if damaged freight can be sold at a reduced price (salvage value), the shipper can't simply throw it away and claim full replacement cost. The carrier gets credit for whatever salvage value the damaged goods had.

If product is totally destroyed and has no salvage value, document that. Get a written statement from the consignee, or have a damage surveyor inspect and certify the total loss.

Cargo Insurance vs. Carrier Liability

Cargo insurance (the shipper's or receiver's policy) and carrier liability under Carmack are two different things.

• Carrier liability under Carmack covers the actual loss, up to any released rate limitation. It's the carrier's obligation whether or not anyone has cargo insurance.
• Cargo insurance is a separate policy — often carried by the shipper or buyer — that covers damage regardless of who was at fault. A shipper with cargo insurance might file a claim with their insurer directly rather than the carrier, especially if the carrier liability is limited.

As an owner-operator or small carrier, your motor truck cargo insurance policy (required to obtain your operating authority) covers the shipper's goods while in your possession. Know your policy limits and any cargo exclusions before you haul unusual freight — electronics, pharmaceuticals, and temperature-sensitive loads often have specific sublimits or require riders.

For a deeper look at how cargo insurance works as a standalone product, cargo insurance explained for owner operators covers what a cargo policy does and doesn't cover in detail.

What Happens After You File

Carriers typically have 30 days to acknowledge a claim in writing and 120 days to resolve it or explain why they need more time — those are federal minimums under 49 CFR § 370. If the carrier ignores or denies the claim, the claimant can file suit in federal or state court.

Most legitimate claims settle without litigation if the documentation is solid. Carriers and their insurers evaluate the documentation you provide: the noted exceptions on the POD, the photos, the invoices, and the repair estimates. A well-documented claim with a clear dollar figure is far harder to deny than a vague one filed months after the fact.

If a broker brokered the load, check whether the broker has a contingent cargo policy. Some broker agreements include cargo coverage that kicks in when the carrier's coverage doesn't respond. Review the load confirmation and the carrier-broker agreement for that language.

Tracking Claims Alongside Your Loads

If you handle multiple loads a month, keeping freight claims tracked against the right load matters for two reasons: you need to know which loads still have open claims, and you need to match any settlements or deductions against the right revenue line.

Load management software that ties claims and notes to individual loads keeps claim status visible without relying on memory or a separate spreadsheet. Invoicing tools that track what you've billed and what you've been paid make it easy to spot when a broker deducts a claim amount from a payment — and whether that deduction matches what was agreed.

Truck Command keeps load records, documents, and notes together so freight claims don't get lost in the shuffle. Plans start at $20/month with a 14-day free trial — no credit card required.