The Carmack Amendment is a federal law that regulates the interstate transportation of goods. It provides a framework, and exclusive cause of action, for determining liability for loss or damage to goods during transit and sets forth procedures for filing claims against carriers.
As a broker, it is important to understand the provisions of the Carmack Amendment and how they impact your business. Here are some key things to keep in mind:
- Liability for Loss or Damage
Under the Carmack Amendment, carriers are generally liable for loss or damage to goods that occur during transit. However, this liability is not absolute and is subject to certain limitations.
- Filing Claims
If goods are lost or damaged during transit, shippers or their brokers must file a claim with the carrier within a specified time period. Failure to do so can result in the loss of the right to recover damages.
- Defenses to Liability
Carriers can assert certain defenses to liability under the Carmack Amendment, such as the “act of God” defense. However, carriers must prove that the loss or damage was caused by an event beyond their control and not the result of their own negligence.
- Limitation of Liability
Carriers can limit their liability for loss or damage to goods by including provisions in their contracts with shippers. These provisions must be written and agreed to by both parties in advance.
- Insurance Requirements
Brokers should ensure that carriers have adequate insurance coverage for the goods they are transporting. This can help protect against losses that exceed the carrier’s liability under the Carmack Amendment.
In conclusion, the Carmack Amendment is an important federal law that brokers must be familiar with. Understanding the provisions of the Carmack Amendment can help brokers protect their clients’ goods and ensure that they are adequately compensated in the event of loss or damage during transit. If you have questions about the Carmack Amendment or need assistance with a transportation-related matter, consult with an experienced transportation law attorney who can provide guidance and assistance.
