Interstate commerce is the lifeblood of the Texas economy, with thousands of shipments crossing state lines daily. However, when cargo is damaged, lost or delayed during transit, it can lead to significant financial losses for businesses and individuals alike.
If any of the three inconveniences happen to you or your company, the law protects you. You can benefit from equipping yourself with the legal support you need to understand your rights regarding interstate compensation.
What is an interstate cargo claim?
An interstate cargo claim arises when cargo being transported between states is damaged, lost or delayed. These claims are governed by federal law, specifically the Carmack Amendment to the Interstate Commerce Act. This law outlines the liability of carriers, for example, trucking companies, for any cargo damaged or lost during transit.
Carrier liability under the Carmack Amendment
The Carmack Amendment helps to ensure that carriers are generally liable for cargo damage, loss or delays unless they can prove one of several exceptions. These exceptions include:
- Acts of God: For example, natural disasters like hurricanes or tornadoes
- Acts of the shipper: If the shipper poorly packed the goods
- Acts of public authority: Events like the government seizure of goods
- Inherent nature of the goods: May include perishable goods spoiling naturally
- Acts of the public enemy: Through theft by a third party
If none of these exceptions apply, an affected carrier will likely be responsible for compensating a shipper or the consignee for any losses or damages incurred during the transport.
Filing a cargo claim in Texas
When damage or loss occurs, timely action is critical. Under the Carmack Amendment, the timeline to file a claim is typically nine months from the delivery date or when delivery should have occurred. Upon realizing that your cargo is damaged, lost or delayed, you should follow these steps when filing a claim:
- Document the damage, loss or delay
- Notify the carrier about the damage loss or delay
- Maintain copies of communication with the carrier
- Follow up to see if the carrier responded to your claim
Further action may be necessary if a carrier denies liability or fails to offer fair compensation.
While inconveniences are normal in the shipping industry, they should not be used as an excuse for carriers to avoid their responsibilities. Learning more about how pertinent laws apply to your specific situation can help you make better legal decisions and potentially lead to more favorable outcomes in the event that you need to file cargo claims.