If someone mentions they work for a trucking company, most people have a pretty good idea of what that company does. They have seen enough semi trucks rolling down the highway, to know that they are moving products from point A to point B.
Historically, brokers have NOT been liable for a claim under the Carmack Amendment. A recent legal decision regarding broker liability will have an immediate impact on freight brokers. Within a FreightWaves article, a Federal Judge held that Seneca Logistics, LLC “the Broker”), a freight broker, was liable to their customer, Richwell Group, Inc. (“the Customer”), for a stolen load of lobster (“the Cargo”) valued at over $300,000. The Court held that the Broker put themselves in a position to care for cargo and, as a result, shall be liable for the cargo theft despite the traditional protections afforded by the Carmack Amendment.
Receive a weekly update of the newest trends in the transportation, logistics, technology industry. We promise to never spam you but to only provide the best resources to help drive your business forward.
Commodity value and risk of transport are two factors that drive profit margins for freight brokers. Yet the most costly commodities and corresponding cargo claims may surprise you.