The Freight Contract, Cargo Claim, and Broker Liability Toolkit

Commercial > Freight, Cargo Claims, and Logistics | Published 10 November 2024 - Updated 23 May 2026 | UpLaw - uplaw.us

How this toolkit is built

Fourteen instruments. Bracketed text is for completion.

Three rules organize the set: the regime decides the deadline, the paperwork decides the number, and the dock decides the case.

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Tool 1 — Regime Selector

Answer in order. Stop at the first yes.

1. Goods in storage, not in transit? → Bailment / warehouse law. Different burden, different limits. Skip to Tool 14. 2. Moving under a single through bill of lading originating abroad? → COGSA likely. 46 U.S.C. § 30701; Kawasaki Kisen Kaisha v. Regal-Beloit. ⚠️ One-year suit deadline. Calendar today. 3. International air? → Montreal Convention. Short notice periods. 4. Household goods? → Carmack plus 49 C.F.R. Part 375, 49 U.S.C. § 14708, 49 U.S.C. § 14915. 5. Interstate motor or rail with a domestic bill of lading? → Carmack, 49 U.S.C. § 14706. 6. Intrastate only, and not part of a continuous interstate movement? → State law. Check 49 U.S.C. § 13501.

Regime selected: [ ] Claim deadline: [ ] Suit deadline: [ ]

📌 Until confirmed, operate on the shortest plausible deadline.

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Tool 2 — Party Role Worksheet

One row per entity appearing on any document.

Entity	On which documents	Issued a BOL in its own name?	Quoted a through rate?	Took custody?	Registered as	Role
[ ]	[ ]	☐	☐	☐	[carrier/broker/forwarder]	[ ]
[ ]	[ ]	☐	☐	☐	[ ]	[ ]
[ ]	[ ]	☐	☐	☐	[ ]	[ ]

Definitions: 49 U.S.C. § 13102. Registration: 49 U.S.C. § 13901, 49 U.S.C. § 13902, 49 U.S.C. § 13905. Broker bond: 49 U.S.C. § 13906.

⚠️ Two yes answers in the middle three columns usually mean the entity is not a broker, whatever its contract says.

Carriers identified (Carmack liability): [ ] Forwarders identified (Carmack liability): [ ] Brokers identified (no Carmack liability, ordinarily): [ ] Broker contractually assumed cargo liability? ☐ yes ☐ no — clause: [ ] Negligent selection theory researched in this forum? ☐ yes — result: [ ] (compare Rowe and Dan's City under 49 U.S.C. § 14501)

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Tool 3 — Dock Exception Script

Post at every receiving dock. Train it. Audit it.

Before signing anything:

1. Open the trailer. Photograph the load in place — full trailer, load pattern, blocking and bracing.
2. Photograph and record the seal number. Does it match the bill of lading? ☐ yes ☐ no ☐ no seal
3. Count. Compare to the bill of lading piece count.
4. Inspect for crush, moisture, odor, shifting, and puncture.
5. On refrigerated freight: read and photograph the setpoint and the current temperature, and take pulp temperatures.

Write on the delivery receipt — specifically:

"Received [N] of [M] pallets. Pallets [ ] crushed. Cartons [ ] wet. Short [ ] cartons. Seal [number] [intact / broken / missing / mismatched]. Reefer setpoint [ ]°, air temp [ ]°, pulp temp [ ]°. Photographs taken."

⚠️ Never write only "subject to inspection." It preserves almost nothing. ⚠️ Never sign clean to "keep the driver moving." That decision costs more than the delay.

Within 24 hours: notify carrier in writing, request inspection, pull the reefer download, notify your insurer, segregate and preserve the goods.

Driver's name: [ ] Tractor #: [ ] Trailer #: [ ] Pro #: [ ] Carrier: [ ]

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Tool 4 — Preservation Demand

[Date] — VIA EMAIL AND CERTIFIED MAIL Re: Preservation of Evidence — BOL [ ], Pro [ ], pickup [date], delivery [date]

This letter concerns a claim for loss or damage to cargo transported under the above bill of lading. You are directed to preserve, and to suspend any routine deletion or overwriting of, the following, in native format with metadata intact:

☐ The bill of lading in every version, including the copy signed at origin ☐ The delivery receipt and any over, short, and damage report ☐ Dispatch records, driver assignment, and trip documentation ☐ Electronic logging device and hours-of-service records ☐ Telematics and GPS breadcrumb data, including hard-braking, stop, and idle events ☐ Refrigeration unit setpoint history and full temperature download ☐ Door-open sensor data and seal records ☐ Dash camera footage and any terminal or yard camera footage ☐ Trailer maintenance and inspection records for the preceding six months ☐ The tariff or rules circular in the version effective on the shipment date ☐ Your internal claim file, investigation notes, and any inspection report ☐ Communications with any broker, agent, or subcontracted carrier regarding this load

Telematics and camera data in this industry are commonly retained for a period measured in weeks. Failure to preserve may support a spoliation remedy.

Please confirm in writing within five business days that a litigation hold is in place.

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Tool 5 — Claim Valuation Sheet

Line	Item	Amount	Support
1	Destination value of goods as they should have arrived	$[ ]	[invoice / market data]
2	Less salvage proceeds actually received	($[ ])	[bids, sale records]
3	Inspection and sorting costs	$[ ]	[ ]
4	Repackaging costs	$[ ]	[ ]
5	Storage during claim handling	$[ ]	[ ]
6	Disposal costs	$[ ]	[ ]
7	Freight charges (recoverable per tariff? ☐ yes ☐ no)	$[ ]	[tariff item]
8	CLAIM TOTAL	$[ ]
9	Applicable limitation, computed	$[ ]	[weight × rate, or cap]
10	Exposure if limitation holds	$[ ]

Consequential damages: $[ ] — recoverable only if the carrier had notice at contracting of the special circumstances. Notice clause? ☐ yes — cite: [ ] ☐ no

📌 Compute line 9 before negotiating. The gap between line 8 and line 10 is the entire case.

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Tool 6 — Compliant Claim Letter

[Date] — VIA EMAIL AND CERTIFIED MAIL To: [Carrier claims department address from the tariff] Cc: [Broker] [Operations contact] Re: CARGO CLAIM — Demand for Payment — BOL [ ] / Pro [ ]

This is a claim under 49 U.S.C. § 14706 and 49 C.F.R. Part 370.

Shipment identification Bill of lading number: [ ] · Pro number: [ ] · Pickup date: [ ] · Delivery date: [ ] Origin: [ ] · Destination: [ ] · Commodity: [ ] · Weight: [ ] · Pieces tendered / received: [ ] / [ ]

Nature of the loss [Concise factual statement: what was tendered in good order, what arrived, and how it was documented.]

Amount claimed: $[ ], computed as follows: [attach Tool 5].

Demand. Claimant demands payment of $[ ] within thirty days.

Enclosures: bill of lading; delivery receipt with exception; photographs; commercial invoice; temperature records; salvage bids and proceeds; disposal records.

Inspection and salvage. Claimant invites inspection of the damaged goods at [address] and will hold them until [date, at least 15 days out]. Please advise by that date whether you wish to arrange salvage; otherwise claimant will dispose of the goods in mitigation and credit any proceeds.

Preservation. Please confirm that the evidence identified in claimant's letter of [date] is being preserved.

⚠️ The words "claim," a dollar figure, and "demand payment" are what make this document a claim rather than an inquiry.

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Tool 7 — Limitation Attack Worksheet

1. Where is the limitation stated? ☐ BOL face ☐ tariff item [ ] ☐ transportation agreement § [ ] ☐ freight classification 2. Text of the limitation, verbatim: [ ] 3. Computed value: [weight] × [rate] = $[ ] · or cap of $[ ] 4. Did the carrier produce the tariff item in the version effective [shipment date]? ☐ yes ☐ no → if no, say so in writing 5. Was an alternative rate with a higher declared value offered? ☐ yes — where: [ ] ☐ no 6. Was the excess valuation charge ever quoted or disclosed? ☐ yes ☐ no 7. Did the shipper make a written election? ☐ yes ☐ no ☐ box left blank 8. Is there an order-of-precedence clause? ☐ yes — text: [ ] ☐ no 9. Do the BOL, rate confirmation, master agreement, and tariff conflict? ☐ yes — describe: [ ] 10. What conduct does the limitation cover by its terms? ☐ loss/damage only ☐ also misdelivery ☐ also conversion ☐ also delay 11. Is the claim outside its scope? e.g., misdelivery under 49 U.S.C. § 80111: ☐ yes ☐ no 12. Through bill with a Himalaya clause? ☐ yes — Norfolk Southern Ry. v. Kirby analysis: [ ] 13. COGSA package count: how does the BOL describe the goods? [ ] → packages: [ ] → limit: $[ ]

📌 The governing standard: a limitation binds only where the shipper had a fair opportunity to choose — New York, New Haven & Hartford R.R. v. Nothnagle.

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Tool 8 — Transportation Agreement Clause Library

Adapt to the party you represent. Shipper-favorable language shown; carrier notes in brackets.

Liability. "Carrier's liability for loss of or damage to cargo shall be governed by 49 U.S.C. § 14706 and shall equal the full actual invoice value of the goods plus freight charges paid, without limitation, unless Shipper elects a released value in writing on the face of the bill of lading for a specific shipment." [Carrier: substitute a stated per-pound limit with a disclosed excess valuation charge and an affirmative election box.]

Order of precedence. "In the event of conflict, the order of precedence shall be: (1) this Agreement; (2) the applicable rate confirmation; (3) the bill of lading; (4) Carrier's tariff or rules circular. No tariff term shall be incorporated into this Agreement by reference except as expressly identified by item number and effective date in an exhibit hereto."

Claims and suit. "Claims may be filed within [twelve] months of delivery or the date delivery should have occurred. Suit may be commenced within [three] years of Carrier's written disallowance. Carrier shall acknowledge claims within thirty days and shall pay, decline, or make a firm compromise offer within one hundred twenty days, consistent with 49 C.F.R. Part 370."

Special damages notice. "Carrier acknowledges that the goods are [time-sensitive / production inputs / subject to downstream contractual penalties], and that late, short, or damaged delivery is reasonably likely to cause Shipper losses including [production downtime, customer chargebacks, expedited replacement costs]. This paragraph constitutes notice at the time of contracting."

No re-brokering. "Carrier shall not broker, re-broker, subcontract, interline, or otherwise tender any shipment to a third party without Shipper's prior written consent. Breach entitles Shipper to [liquidated damages equal to 100% of the line-haul rate] and to full actual damages for any resulting cargo loss, notwithstanding any limitation elsewhere."

Insurance. "Carrier shall maintain motor truck cargo legal liability coverage of not less than $[ ] per occurrence with a deductible not exceeding $[ ], and public liability coverage meeting 49 C.F.R. Part 387. Certificates shall name Shipper as certificate holder with thirty days' notice of cancellation. Carrier shall disclose all commodity exclusions."

Accessorials and free time. "Free time shall be [two] hours at origin and [two] hours at destination. Detention shall accrue at $[ ] per hour, documented by [gate log / signed dock ticket]. No accessorial not listed in Exhibit [ ] shall be payable."

Audit and retention. "Each party shall retain shipment records for [four] years and shall produce them on reasonable request. Carrier shall archive its tariff by effective date and produce the item in force on any shipment date within ten days of request."

Governing law and forum. "This Agreement is governed by the law of [ ]. The parties consent to exclusive jurisdiction in [ ]." [Consider the broker-liability split across circuits when selecting.]

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Tool 9 — Released Value Election Form

Attach to the bill of lading. One page. Signed at tender.

SHIPMENT: BOL [ ] · Date [ ] · Commodity [ ] · Weight [ ] lbs · Declared invoice value $[ ]

Shipper elects, for this shipment: ☐ OPTION A — Released value. Carrier's liability limited to $[ ] per pound, total $[ ]. Line-haul rate: $[ ]. ☐ OPTION B — Declared full value. Declared value $[ ]. Excess valuation charge: $[ ]. Total rate: $[ ].

Shipper acknowledges that both options were offered and that the rate difference is $[ ].

Shipper signature: ________________ Printed: [ ] Title: [ ] Date: [ ] Carrier acknowledgment: ________________ Date: [ ]

📌 This one page is the difference between recovering eight percent and one hundred percent of a loss. It costs nothing to execute and cannot be created after the fact.

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Tool 10 — Broker and Carrier Vetting Worksheet

At booking: ☐ Legal name and DBA: [ ] ☐ USDOT #: [ ] ☐ MC #: [ ] ☐ Operating authority active on this date? ☐ yes ☐ no — verified [date/time] by [ ] ☐ Authority type: ☐ motor carrier ☐ broker ☐ freight forwarder — matches the role being performed? ☐ yes ☐ no ☐ Broker bond or trust fund on file under 49 U.S.C. § 13906? ☐ yes — amount $[ ] ☐ Cargo insurance certificate obtained? ☐ yes — limit $[ ] deductible $[ ] carrier [ ] expires [ ] ☐ Commodity exclusions reviewed? ☐ yes — list: [ ] ☐ Public liability meets 49 C.F.R. Part 387? ☐ yes ☐ Safety rating and inspection history reviewed? ☐ yes — notes: [ ] ☐ Phone number verified against the registration record, not the rate confirmation? ☐ yes

At pickup — the step that stops strategic theft: ☐ Driver name matches dispatch? ☐ yes ☐ no ☐ Tractor and trailer numbers match dispatch? ☐ yes ☐ no ☐ Photographed: tractor, trailer, plate, driver's license ☐ yes ☐ Any change to pickup instructions since booking? ☐ no ☐ yes → independent callback made? ☐ yes ☐ Seal applied and number recorded on the BOL: [ ]

⚠️ A verified authority record proves a real carrier exists. It does not prove the truck at your dock belongs to it.

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Tool 11 — Detention, Demurrage, and Accessorial Dispute Worksheet

Charge	Amount billed	Carrier's evidence	Our evidence	Contract basis	Disputed?
Detention origin	$[ ]	[telematics timestamps]	[gate log / dock ticket / camera]	§ [ ]	☐
Detention destination	$[ ]	[ ]	[ ]	§ [ ]	☐
Demurrage	$[ ]	[ ]	[terminal appointment records]	[ ]	☐
Per diem / chassis	$[ ]	[ ]	[ ]	[ ]	☐
TONU	$[ ]	[ ]	[ ]	[ ]	☐
Layover	$[ ]	[ ]	[ ]	[ ]	☐
Lumper	$[ ]	[ ]	[ ]	[ ]	☐
Reconsignment / redelivery	$[ ]	[ ]	[ ]	[ ]	☐
Storage	$[ ]	[ ]	[ ]	[ ]	☐

Questions that resolve most of these: ☐ Is the charge in the master agreement's accessorial schedule, or only on the rate confirmation? ☐ Was free time exhausted, measured from what event? ☐ Do we have independent arrival and departure evidence? ☐ For ocean demurrage: was the terminal accepting returns or offering appointments on the days billed? If not, consider a reasonableness challenge under 46 U.S.C. § 41102, with reparations available under 46 U.S.C. § 41305 and tariff obligations at 46 U.S.C. § 40501.

📌 Detention disputes are decided by whoever has timestamps from a source the other side does not control. A five-dollar dock ticket beats a telematics report.

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Tool 12 — Carrier Lien Response Letter

[Date] — VIA EMAIL Re: Demand for release of goods — BOL [ ] / Pro [ ]

Carrier is holding [describe goods] and conditioning release on payment of $[ ], of which $[ ] relates to shipments other than this one.

1. Scope of the lien. Under 49 U.S.C. § 80109, a carrier's lien under a negotiable bill of lading secures charges on that shipment and expenses necessary to preserve the goods. It does not secure an account balance. Carrier is directed to identify the contractual basis for any general lien it asserts.

2. Contract. [Cite the transportation agreement section, or state that no general lien or setoff clause exists.]

3. Delivery obligation. 49 U.S.C. § 80110 obligates the carrier to deliver. Misdelivery exposes the carrier under 49 U.S.C. § 80111.

4. Mitigation. The goods are [perishable / seasonal / production-critical] and are losing value at approximately $[ ] per day. Shipper will tender $[ ] under protest to obtain release and will pursue recovery of any amount not lawfully due, together with the consequential losses caused by the delay.

5. Reservation. Payment under protest is not an admission and does not waive any claim.

[Household goods: add references to 49 U.S.C. § 14915, 49 U.S.C. § 14708, and 49 C.F.R. Part 375.]

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Tool 13 — Freight Charge Exposure Worksheet

1. How did the shipment move? ☐ prepaid ☐ collect ☐ third-party billed to [ ] 2. Who is named on the BOL as shipper / consignee / bill-to? [ ] / [ ] / [ ] 3. Was the non-recourse ("Section 7") election executed at tender? ☐ yes ☐ no ☐ box left blank 4. Has the broker been paid by us? ☐ yes — date, amount, proof: [ ] 5. Has the carrier been paid by the broker? ☐ yes ☐ no ☐ unknown 6. Is the carrier now billing us for the same freight? ☐ yes → double-payment exposure: $[ ] 7. Does the transportation agreement waive statutory rights under 49 U.S.C. § 14101? ☐ yes — text: [ ] 8. Is a factoring company or freight auditor pursuing an old balance? ☐ yes — shipment dates: [ ] — do we still hold the BOLs and proof of payment? ☐ yes ☐ no 9. Retention policy adequate? Bills of lading, rate confirmations, and proof of payment retained [ ] years.

⚠️ The non-recourse election is a single box executed at tender. It is the cheapest protection in this entire toolkit and the one most often missed.

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Tool 14 — Warehouse and 3PL Agreement Checklist

A warehouse is a bailee, not a carrier. Draft accordingly.

☐ Separate the liability sections by function — carriage, brokerage, and storage each need their own standard, limit, and claims process. A single blended clause is the most common defect in 3PL agreements. ☐ Standard of care stated as reasonable care, with the burden structure spelled out ☐ Limitation of liability — per pound, per unit, or a multiple of monthly storage charges — with a declared-value option ☐ Warehouse receipts — negotiable or nonnegotiable, and who may take delivery ☐ Warehouse lien — scope, notice, and sale procedure ☐ Inventory shrinkage allowance — stated as a percentage, with cycle-count methodology and a reconciliation cadence ☐ Receiving and inspection protocol, including what constitutes acceptance ☐ Insurance — whose policy covers stored goods, and whether the warehouse is required to name the depositor ☐ Access and audit rights, including unannounced counts ☐ Security interest coordination where inventory is financed — see Secured Transactions and Liens ☐ Segregation and commingling rules for fungible goods ☐ Termination and removal — how goods come out, on what notice, and who pays ☐ Claims procedure and deadlines, distinct from the carriage deadlines

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Tool 15 — Authority Quick Reference

Carmack and motor carrier regulation ☐ 49 U.S.C. § 14706 — carrier liability ☐ 49 U.S.C. § 13102 — definitions ☐ 49 U.S.C. § 13501 — jurisdiction ☐ 49 U.S.C. § 14501 — preemption ☐ 49 U.S.C. § 14704 — rights and remedies ☐ 49 U.S.C. § 14101 — service obligations and contractual waiver ☐ 49 U.S.C. § 13703 — collective activity exemption ☐ 49 C.F.R. Part 370 — claim processing · Part 371 — brokers · Part 372 — exemptions and commercial zones · Part 386 — agency practice · Part 387 — financial responsibility

Bills of lading ☐ 49 U.S.C. § 80101 definitions · § 80103 negotiability · § 80105 rights of purchasers · § 80109 lien · § 80110 delivery · § 80111 misdelivery · § 80112 bills in sets · § 80113 misdescription

Ocean ☐ 46 U.S.C. § 30701 · § 30703 · § 30704 · § 30705 · § 30706 · § 40501 · § 41102 · § 41305

Cases ☐ Missouri Pacific R.R. v. Elmore & Stahl — the prima facie case ☐ New York, New Haven & Hartford R.R. v. Nothnagle — fair opportunity to choose ☐ Norfolk Southern Ry. v. Kirby — Himalaya clauses and intermediaries ☐ Kawasaki Kisen Kaisha v. Regal-Beloit — through bills displace Carmack inland ☐ Rowe v. New Hampshire Motor Transport Ass'n — § 14501 scope ☐ Dan's City Used Cars v. Pelkey — "with respect to the transportation of property"

Household goods: 49 U.S.C. § 14708 · § 14915 · 49 C.F.R. Part 375

📌 The three rules again: the regime decides the deadline, the paperwork decides the number, and the dock decides the case.

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