What does the Carmack Amendment in the U.S. state about cargo loss or damage liability?

The Carmack Amendment, which is part of the Interstate Commerce Act, specifies that carriers engaged in interstate commerce are liable for actual loss or damage to goods they transport unless they can show they took steps to limit their liability and provided notice of such limitations to the shipper. Thus, carriers hold full value liability for the cargo unless they notify the shipper about the limitation of this liability beforehand.

This provision ensures that shippers are protected against the potential total loss of their shipment unless they have consented to a limited liability arrangement after being properly informed. The aim is to promote fairness in transactions and provide a certain level of protection for shippers when their goods are in transit.

Understanding the context of this amendment highlights that it plays a vital role in transportation law, promoting accountability while also allowing carriers to establish reasonable limits on their financial responsibility if those limits are communicated clearly.