Posted in Operations and Supply Chain Terms, Total Reads: 1163
Definition: Carmack Amendment
The carmack amendment is an addition to the interstate commerce laws which entitles the shipper to recover from the carrier the actual amount of loss or damage to the objects during interstate transport.
Any case under the carmack amendment starts with the shipper who needs to prove that he delivered the goods to the carrier in good condition and that the goods delivered at the destination were damaged and that the damage was caused during transit. The next stage is for the carrier to defend that any damage caused is due to any of the five factors excused under the amendment viz. an act of God, an act of public enemy, an act of the shipper himself, public authority or the inherent nature of the goods.
It should be noted that under the amendment, the shipper can only claim for the actual loss or damage of the material and any fees for the legal proceedings are not included in this.