By Bernardo Campelo, Forbes Business Council E-Commerce Leader, Amazon SPN Certified provider, Amazon SP-API authorized partner, and Founder of PrepVia.
Picture a pallet leaving a dock on a Tuesday. It weighs 800 pounds and holds new stock that cost $12,000. It rides on a standard LTL bill of lading with nothing extra written on it. At a terminal two states away, a forklift tips it off the forks and every carton on it is crushed.
The claim goes in with the supplier invoice. If the carrier is Old Dominion and nobody asked for more, the most it owes is $4,000. Nobody broke a rule: the number sat in the carrier's tariff before dispatch.
"Released value, a few dollars a pound" is too vague to act on. So this post reads one real tariff line by line: Old Dominion's ODFL 100-Q, as posted when I read it on September 25, 2026. Use this as a method for your carrier's tariff, not as the LTL rule.
The thesis: on a standard LTL bill of lading, you ship at the limit in the carrier's tariff, not at your invoice value. Changing that costs money, in writing, before pickup.
The 60-second version
On a standard LTL bill of lading, your pallet is covered for what the carrier's tariff says, not for what it cost you. Old Dominion's Item 594 limits new goods to the lowest of invoice value, replacement cost, or $5.00 per pound, with $50,000 per occurrence. An 800 pound pallet of new stock worth $12,000 is capped at $4,000; at $0.10 a pound for used goods, the same weight gets $80. A declared value on the bill of lading does not raise that; a Covered Value bought under Item 574 does, and it is not insurance. On Amazon Partnered Carrier freight, you stay shipper of record with the risk of loss, and the path Amazon documents is its reimbursement policy, at sourcing cost up to $5,000 per unit.
Released Value Is a Rate You Accepted, Not a Promise
Under 49 U.S.C. 14706, an interstate motor carrier is liable for the actual loss or injury to the property it hauls. The same section lets it price its way out of that.
Subsection (c)(1)(A) lets a motor carrier set rates that limit its liability to a value declared or agreed in writing, if that value is reasonable under the circumstances. That is released value. The low limit is part of the price you paid. A higher limit is a different price.
The statute also gives you a right. A carrier that is not required to file its tariff must, on your request, give you a copy of the rates, rules and practices behind your shipment, with their dates. Ask for it. The number that decides your claim lives there, not in the quote email.
The tariff also says who is bound. Old Dominion's Item 574 says every shipment moves under Item 594 unless something else is agreed in writing. The party that tenders the freight represents that it can bind everyone with an interest in the cargo. So when your supplier or your prep center books the truck, the carrier starts from the position that you are bound. Whether that holds in a dispute is a question for a lawyer. If you have a negotiated carrier contract, read it before the tariff.
Old Dominion's Item 594, Line by Line
Item 594 of Old Dominion's rules tariff ODFL 100-Q, effective April 14, 2025 and revised November 3, 2025, sets the maximum carrier cargo liability. For freight moving within the 48 contiguous states, the limit is the lowest of three numbers: invoice value, replacement cost, or a tariff limit set per pound and per occurrence. Some of those limits sit in a separate list, Item 594-1, the limited liability articles, and some in the National Motor Freight Classification itself.
| What is on the pallet | Where the limit lives | Per pound | Per occurrence |
|---|---|---|---|
| New goods not listed in Item 594-1 | Item 594 | $5.00 | $50,000 |
| Used, reconditioned, refurbished or remanufactured goods | Item 594 | $0.10 | $10,000 |
| Property bought over the internet, from eBay, Amazon or others, that is not new merchandise | Item 594-1 | $0.10 | $10,000 |
| Furniture and furniture parts, such as chairs, desks, tables and metal storage cabinets | Item 594-1 | $2.00 | $50,000 |
| Refrigerators and freezers, tank water heaters, doors, glazed windows | Item 594-1 | $2.00 | $50,000 |
| Freight the carrier itself hauls back to the original shipper, in the cases the tariff lists | Item 594 | $0.10 | $500 |
It is the lowest of, not up to. If your invoice sits below the per pound limit, you recover the invoice.
The limit counts only the weight lost or damaged. If three of your cartons are crushed, you are paid on the weight of those three, not the whole shipment.
Some losses sit outside it. Item 594 disclaims lost profits and consequential damages, and losses caused by an act of God, public authority including US Customs, the shipper's own act, or inherent vice of the goods. If a crushed pallet leaves you out of stock on Amazon, that is a lost profit. No rate pays it.
Two more clauses bite late. The carrier will not accept a corrected bill of lading that adds valuation after delivery. And Item 594-1, revised March 2, 2026, sets its own limits by NMFC item, down to $0.50 a pound for uncrated machinery and $0.10 for bathtubs, hot tubs and spas. Check the NMFC item on your bill of lading. The last row is not e-commerce returns: it is freight the carrier itself carries back.
The Math on Two Pallets: New Stock and Returns
Here is the calculation I run before a pallet ships on a carrier's own tariff. Weights and invoice values are illustrative; the limits are Old Dominion's.
| Scenario (illustrative) | Weight counted | Invoice value | Tariff line | Tariff limit | Most the carrier owes |
|---|---|---|---|---|---|
| A. New stock, pallet lost | 800 lb | $12,000 | New, $5.00/lb | $4,000 | $4,000, a third of invoice |
| A2. Same pallet, three 40 lb cartons crushed | 120 lb | $1,800 | New, $5.00/lb | $600 | $600 |
| B. Customer returns, opened and graded used | 600 lb | $9,000 at cost | Used, $0.10/lb | $60 | $60 |
| C. New furniture, pallet lost | 800 lb | $6,000 | Item 594-1, $2.00/lb | $1,600 | $1,600 |
| D. Dense, low value stock, pallet lost | 1,500 lb | $3,000 | New, $5.00/lb | $7,500 | $3,000, the invoice is lower |
One number predicts every row: invoice value divided by the weight at risk. Pallet A carries $15.00 per pound against a $5.00 limit, so two thirds of it is unprotected. Pallet D carries $2.00 per pound, so released value already reaches the invoice.
Pallet B is the harsh one. At $0.10 a pound, 600 pounds is worth $60 to the carrier, whatever it cost you.
Notice what the tariff sorts by: condition, not the word returns. Customer returns that were opened and graded look like the used line. Unsold units pulled from FBA in original packaging are a different fact pattern, and I would not assume either answer. Ask the carrier in writing before the pallet moves. If you grade returns yourself, our notes on misgrades and reinspection in the FBA returns loop explain why that grade matters beyond freight.
Declared Value vs Covered Value: Buying More Liability, and What It Costs
The common fix is writing the value on the bill of lading. At Old Dominion, that does nothing. Item 594 says a declared value there is not a request for higher liability, and the carrier provides no excess insurance.
The real mechanism is Item 574, the optional higher level of carrier cargo liability, revised May 1, 2026. The carrier markets it as Additional Cargo Liability. It takes two steps. Miss either one and the shipment reverts to Item 594.
- Request a Covered Value in writing before you tender. Through a carrier representative with written confirmation, through the carrier's rating system with the quote number, or directly on the bill of lading. Every route ends with a notation on the original bill of lading.
- Agree to pay the higher charge, and pay it. No payment within terms, no higher limit.
Covered Value starts at the first dollar and replaces the Item 594 limit. So you request the full value, not the gap above $4,000. Without a carrier officer's written approval, the maximum is $250,000 per shipment for new goods and $15,000 for used goods. A request on a corrected bill of lading after pickup is refused.
On price, Item 574 lists $1.00 per $100 of value for shipments on land inside the 48 contiguous states. Value means Covered Value plus freight charges, with a $79.00 minimum per shipment. The tariff calls those rates information only and subject to change, so the numbers below are illustrative.
Take Pallet A with $450 of freight. That is $12,450 of value, so $124.50 buys a limit of $12,000 instead of $4,000. A $5,000 pallet with $300 of freight computes to $53.00, so the $79.00 minimum applies. The $9,000 returns pallet fits under the $15,000 used maximum, at $94.00 with $400 of freight.
Two limits survive the upgrade. Recovery is still the lowest of invoice, replacement cost or Covered Value, and the charge itself is not recoverable in a claim. The exclusions stay too, from lost profits and delay to inherent vice and weather of any kind or severity.
24 to 36h prep. 35-hour end-to-end guarantee or the prep is free. Net-30 terms. From 50 units to full truckloads.
What Changes When Amazon Books the Truck
Everything above assumes you booked the carrier yourself. On Amazon Partnered Carrier freight, the documented path moves to Amazon's policies, and the unit of account from pounds to units.
Amazon's Partnered Carrier program page covers small parcel, LTL, FTL and intermodal shipments within the 48 contiguous states. It says you get coverage for lost or damaged items under the FBA inventory reimbursement policy. The Amazon Partnered Carrier Agreement adds the fine print. You are the shipper of record and Amazon is the payer of record. Title and risk of loss stay with you, and the rates create no liability for Amazon for delay, damage or loss. So the remedy Amazon documents is its own reimbursement claim, not a per pound freight claim. None of those pages says whether you, as shipper of record, can also claim against the partnered carrier; that is a question for counsel.
The FBA inventory reimbursement policy covers items lost or damaged by a carrier operated by Amazon or on its behalf. Shipment to Amazon claims pay your sourcing cost, excluding shipping, handling and customs duties. If you entered no sourcing cost, Amazon uses its own estimate. The cap is $5,000 per unit, and above that Amazon itself recommends third-party insurance.
Eligibility has conditions no tariff asks about. You must have sent the exact items and quantities in your plan. And per Amazon's FBA Prep Service page, shipments created after January 1, 2026 that arrive without proper prep and labeling are not eligible if damaged or untraceable. On partnered freight, prep quality is part of your coverage.
The shipment to Amazon claim is due within nine months of verified delivery, one claim per shipment. For LTL, Amazon asks for a proof of delivery with the box count and pickup weight, stamped by Amazon, plus proof of ownership such as a supplier invoice. We cover that file in BOL, POD and the FBA paper trail, the payout side in FBA reimbursement for lost inbound shipments, and the contract side in partnered carrier or own carrier.
One trap. Amazon's SP-API tutorial for partnered carrier shipments asks for a declared value, with the freight class, on pallet shipments. Nothing there or on the program page says that figure raises anyone's liability, so do not treat it as coverage.
Removals run on a third clock. The removals claims page covers loss or damage by Amazon or a carrier used by Amazon on the way to your returns address: lost items no sooner than 15 days after the last movement and within 75 days of creation, damage within 60 days of delivery. More in our 2026 guide to removal orders. Ship that pallet onward on a carrier's tariff and the condition question returns.
Accept, Buy Covered Value or Insure: The Decision Table
Carrier liability is what the carrier owes when it is liable, capped by its tariff. Additional Cargo Liability raises that cap for one shipment, with the exclusions intact. Cargo insurance is your own policy, and it pays on its own wording. The policy that follows goods from supplier through storage is explained in our post on COI, bailee coverage and stock throughput.
For scale, Verisk CargoNet's Q2 2026 theft analysis, published August 6, 2026, put the average among thefts with a reported commodity value at $564,009, inflated by a few extreme losses. Not a typical loss, but $50,000 per occurrence is a ceiling.
| Your freight | Where to look first | Why | Watch out for |
|---|---|---|---|
| New goods at $5.00 a pound or less | Accept released value | Lowest of already reaches invoice | Is the commodity on Item 594-1 at $2.00? |
| New goods above $5.00 a pound, under $250,000 | Request a Covered Value | Replaces the limit from the first dollar | Original bill of lading, before pickup; not insurance |
| Used or customer returned goods, your own account | Covered Value up to $15,000, or insure | Released value is $0.10 a pound | Condition is the carrier's call; ask in writing |
| Furniture, refrigerators, doors | Compare Covered Value with a policy | The limit is $2.00 a pound | The NMFC item on the bill of lading |
| Recurring freight across carriers and storage stops | Cargo or stock throughput policy | Every carrier writes its own tariff | Price it with a licensed broker |
| Amazon Partnered Carrier inbound | Amazon reimbursement claim | Sourcing cost, up to $5,000 a unit | Plan accuracy and prep decide eligibility |
| Removal order back from FBA | Amazon removals claim | A carrier used by Amazon moved it | 60 days from delivery for damage; 75 from creation for loss |
| Lost sales, delay, inherent vice | Only a policy written for them | Items 594 and 574 disclaim them | Read exclusions with your broker |
This is not insurance or legal advice. It is a close reading, so your broker conversation starts from real numbers.
The Claim Clock and the Paper That Wins It
A limit only matters if the claim survives. Item 594 wants claims, with supporting documents, within nine months of delivery, or of expected delivery if the freight is lost. Concealed damage must be reported within five business days of delivery, and the carrier must be allowed to inspect. File late, without documents or without an inspection, and the tariff says the claim is denied. A lawsuit is due within two years of the carrier's written disallowance.
Section 14706(e) sets the federal floor: no less than nine months to file a claim and two years to sue. The five business day notice is Old Dominion's own rule. It goes fast in a busy staging lane.
49 CFR Part 370 defines a claim: a written demand that identifies the shipment, asserts liability and asks for a specified or determinable amount. A damage note on a delivery receipt, standing alone, is not one. The carrier must acknowledge it within 30 days and pay, decline or make a firm offer within 120 days, or report status every 60 days.
- Before pickup, compute value per pound. Decide: accept, buy Covered Value or insure, while the original bill of lading is still blank.
- At pickup, count pallets against the bill of lading. Keep the signed copy. Amazon's partnered page has the clerk and the driver both sign.
- At delivery, note exceptions and photograph before breakdown. Anything you find after a clean signature has to be argued as concealed damage.
- Hold the damaged freight. The tariff makes inspection a condition of the claim.
- File around the damaged weight. Invoice, weight lost, photos, bill of lading, proof of delivery. File early, not in month eight.
- On partnered or removal freight, switch clocks. Amazon's windows and evidence rules apply, not a carrier claim form.
At a prep center, the first count is what every later claim leans on. At PrepVia in Miami, every carton is counted against the packing list and the bill of lading at receiving, and discrepancies are reported with photos within 24 hours of arrival. That record is not insurance. It is evidence, created inside the carrier's window.
Frequently Asked Questions
What does released value mean on an LTL shipment?
It is a limit on carrier liability built into the freight rate. Under 49 U.S.C. 14706(c)(1)(A), a motor carrier may set rates that limit its liability to a value declared or agreed in writing, if reasonable. Each carrier writes its own limit in its rules tariff. At Old Dominion, new goods get the lowest of invoice value, replacement cost, or $5.00 per pound.
How much is a pallet covered for under Old Dominion's standard liability?
For new goods not listed in Item 594-1, the lowest of invoice value, replacement cost, or $5.00 per pound, up to $50,000 per occurrence. An 800 pound pallet of new stock tops out at $4,000. Used or refurbished goods get $0.10 per pound up to $10,000, and furniture $2.00 per pound. Only the weight lost or damaged counts.
Does writing a declared value on the bill of lading increase carrier liability?
Not at Old Dominion. Item 594 says a declared value on the bill of lading is not a request for higher liability. You must request a Covered Value under Item 574, in writing, before the carrier takes the freight, and pay for it. Other carriers set their own rules, so read your carrier's tariff.
How much does additional cargo liability cost at Old Dominion?
Item 574, revised May 1, 2026, lists $1.00 per $100 of value inside the 48 contiguous states, where value is Covered Value plus freight, with a $79.00 minimum per shipment. The tariff calls it information only, so confirm it. Without officer approval, the maximum is $250,000 for new goods and $15,000 for used.
Are returned or refurbished goods covered at the same rate as new goods?
No. Old Dominion limits used, reconditioned, refurbished and remanufactured goods to $0.10 per pound, and applies the same line to property bought online that is not new merchandise. The tariff sorts by condition, not by the word returns, so unsold units removed from FBA are not automatically used.
What happens to carrier liability limits when I use Amazon Partnered Carrier?
Amazon's program page says partnered shipments get coverage under the FBA inventory reimbursement policy, while its Partnered Carrier Agreement keeps you as shipper of record with the risk of loss. The policy pays shipment to Amazon claims at sourcing cost, up to $5,000 per unit, if your plan matched and your prep met the rules. Claims are due within nine months of verified delivery.
Is additional cargo liability the same as cargo insurance?
No. Old Dominion states that Additional Cargo Liability is not insurance and that it is not a licensed insurance agent. It raises the carrier's own limit for one shipment, and the carrier's exclusions still apply, including lost profits, delay and inherent vice. Cargo or stock throughput insurance is a policy you buy, and a licensed broker should price it.
Final Take
The pallet in the opening lost $8,000 at booking, not at the forklift. Nobody divided the invoice by the weight. On Old Dominion's tariff, that division tells you in ten seconds whether $5.00 a pound is enough.
Returns are the sharper lesson. At 10 cents a pound, released value on used goods is close to nothing, and condition decides the line. Ask how the carrier will classify your pallet, then buy Covered Value or insure.
Partnered freight changes the rulebook, not the discipline. Amazon pays per unit at sourcing cost, and only when your plan matched what shipped and your prep met the standard.
None of this replaces a broker or a lawyer. It replaces a guess. Pull your carrier's tariff, find your line, and decide before the bill of lading is signed.
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