When high-value freight disappears, the financial consequences can be significant—and the fallout often extends far beyond the loss of goods. Shippers must act quickly to identify the responsible parties, preserve their rights, and pursue recovery through insurance, contract claims, or litigation. Increasingly, businesses are holding brokers accountable when their failure to screen carriers or prevent fraud contributes to freight loss.
With freight theft, double brokering schemes, and fraudulent carrier operations on the rise—especially in major logistics hubs like California and Texas—shippers need a clear understanding of how broker liability works and what legal options are available when expensive cargo vanishes.
Why High-Value Freight Is a Growing Target
Certain types of cargo—electronics, pharmaceuticals, luxury goods, metals, and consumer products—attract organized theft groups due to their high resale value and ease of movement. Common contributing factors include:
- Double brokering and identity fraud where thieves impersonate legitimate carriers.
- Poor vetting practices by brokers who fail to verify carrier authority or insurance.
- Lack of shipment visibility during handoff, transit, or storage.
- Breakdowns in contractual oversight, leaving liability unclear.
When a broker’s negligence plays a role in assigning or managing the shipment, they may share responsibility for the loss.
When Brokers Can Be Held Liable for Cargo Loss
Although the Carmack Amendment governs the liability of motor carriers—not brokers—shippers can still pursue claims against brokers under several legal theories:
Negligent Hiring or Selection
Brokers must exercise reasonable care in choosing carriers, especially for high-value freight. Ignoring red flags or failing to validate carrier credentials can support a negligence claim.
Breach of Contract
Some broker-shipper agreements include specific security, compliance, or vetting obligations. Failure to meet these duties may create contractual liability.
Misrepresentation or Fraud
If a broker misrepresented a carrier’s reliability, safety rating, or insurance coverage, the shipper may pursue fraud-related claims.
Holding Out as a Carrier
If a broker acts like a carrier—using its branding or taking responsibility for transport—it may be treated as a carrier in court, making it strictly liable.
High-value freight increases the reasonable expectation that brokers must apply heightened diligence.
Legal Strategies for Recovering High-Value Freight Losses
Shippers can strengthen their position by responding quickly and strategically. Key steps include:
Preserving Evidence
Secure bills of lading, rate confirmations, emails, GPS data, delivery logs, and identity verification records.
Analyzing All Contracts
Determine whether broker agreements include indemnity clauses, liability limitations, or heightened security duties.
Filing Claims with Multiple Parties
In cases of uncertainty, shippers may pursue parallel claims against the carrier’s insurer, the broker’s bond, and potentially negligent third parties.
Pursuing Litigation When Necessary
Courts can impose damages for negligence, breach of contract, or misleading representations that contributed to freight loss.
Strong documentation and early involvement of legal counsel substantially improve recovery outcomes.
Did You Know?
Double brokering scams—where fraudulent carriers intercept loads—are now responsible for a significant share of high-value freight losses nationwide.
Legal Support for High-Value Cargo Loss Claims
When costly shipments disappear, shippers need focused legal guidance to determine liability and pursue compensation efficiently. At Putterman Law, we help businesses investigate high-value freight losses, assess the conduct of brokers and carriers, enforce contractual rights, and pursue recovery through insurance, claims, or litigation. Our goal is to protect your financial interests and hold all responsible parties accountable.
Request a Consultation with Putterman Law
FAQs
1. Can brokers be held liable for high-value freight loss?
Yes. If a broker fails to vet carriers properly, misrepresents carrier qualifications, or assumes contractual duties related to shipment security, they may be liable for negligence or breach of contract.
2. What makes high-value freight more vulnerable to theft?
High resale value, poor security oversight, identity fraud, and increased targeting by organized crime groups all contribute to higher risk.
3. What evidence is most important after freight goes missing?
Bills of lading, communications with brokers and carriers, insurance documents, GPS logs, and identity verification records are essential for establishing liability.
4. Can shippers pursue claims against both the carrier and the broker?
Yes. Until liability is clearly established, shippers may pursue multiple parties—including carriers, brokers, and insurers—to maximize recovery.
5. How does Putterman Law support shippers facing high-value freight loss?
Putterman Law investigates the loss, evaluates contracts, identifies liable parties, handles insurer negotiations, and pursues litigation when necessary.
