Broker Deducted a Cargo Claim From Your Pay? What Carriers Can Do

Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.

Not legal advice. UnpaidLoad is a document-preparation tool, not a law firm. Verify facts with FMCSA and talk to an attorney about your contract and state law.

You delivered the load, the receiver noted a few damaged cases, and now the broker is holding your whole payment or knocking the "claim" off your invoice. Cargo-claim offsets are one of the fastest ways a carrier ends up unpaid on a load they actually hauled. Here's how the claim rules work and how to push back with paperwork.

Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

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9. Two separate things: your freight charges and the claim

Your freight charges come from your rate confirmation. A cargo claim is a demand that you pay for loss or damage to the goods. Federal law makes motor carriers liable for actual loss or injury to property they transport (49 U.S.C. 14706 (Carmack Amendment)), but liability still has to be shown, and the amount still has to be proved. Whether a broker can offset an unproven claim against what it owes you usually comes down to your contract.

Step 1: Read your broker-carrier agreement and rate con

Look for:

Offset or setoff clause: language letting the broker deduct claims from amounts owed.
Cargo liability limits: a per-pound or per-load cap, or "full value."
Claim procedure: how and when the broker must notify you and what documents it must send.
Insurance requirements: what your cargo policy is expected to cover.
Payment terms: the days to pay and whether a claim pauses them.

See what to check on a rate con before your next load.

Step 2: Ask for the claim in writing

The federal claim rules say a claim must be a written communication that identifies the shipment, asserts liability, and asks for a specified or determinable amount (49 CFR 370.3). The same rule says bad-order reports, damage notations on delivery receipts, and inspection reports, standing alone, are not enough. Reply politely and ask the broker to send:

The written claim from the shipper or consignee with the amount claimed.
The commercial invoice or proof of the goods' value.
Photos and the inspection report, if any.
Whether the goods were salvaged, returned, or resold, and for how much.

When investigation needs it, a claim is supported by the bill of lading, evidence of freight charges, and the invoice or certified value (49 CFR 370.7).

Step 3: Build your side of the record

The BOL, especially "shipper load and count" or seal numbers.
The signed POD with exactly what was noted, and nothing more.
Photos of the load at pickup and delivery, and of the seal.
Temperature or reefer logs for temperature claims.
ELD and GPS records showing time and route.
All messages with the broker and receiver.

A clean POD, an intact seal, or a "shipper load and count" BOL can matter a lot in a damage or shortage dispute.

Step 4: Dispute the offset in writing

If the broker deducted more than the documented claim, or deducted before sending a proper claim, send a short, factual dispute: the load number, the freight charges owed, the amount withheld, why the deduction isn't supported, and a request to pay the undisputed balance by a specific date. If your cargo insurer is handling the claim, say so and give the claim number. Keep it professional. See what to do about a short pay.

Step 5: Use the claim timelines

For claims filed against a motor carrier, the rules require written acknowledgment within 30 days (49 CFR 370.5) and a written payment, declination, or firm compromise offer within 120 days, with status updates every 60 days after that (49 CFR 370.9). Federal law also sets minimum periods for filing a claim and for bringing a lawsuit after a written declination (49 U.S.C. 14706 (Carmack Amendment)). Track every date. If you dispute the claim, a written declination with your reasons creates a clear record.

Step 6: Check the broker's FMCSA record

A broker that holds full payment over a small claim sometimes has cash problems. Run it through our free Broker Check to see authority status, authority age, and the BMC-84/85 filing and surety name from FMCSA records (FMCSA Licensing & Insurance (L&I)). If the bond shows a pending cancellation, read what to do when a broker's bond is cancelled right away.

Step 7: Demand, then escalate

If the broker still won't pay the undisputed freight charges, send a demand letter with a pay-by date and the surety's name. See how to write a demand letter. A broker's BMC-84 bond or BMC-85 trust exists to pay carriers if the broker fails to carry out its contracts for transportation (49 CFR 387.307). Whether a surety pays when there's a cargo dispute depends on its review and your proof. Walk through it in how to file a broker bond claim. If you factored the load, talk to your factor first. See factoring chargebacks.

Common mistakes

Accepting a phone call as a claim. Ask for it in writing with an amount.
Signing a POD with vague notes. Write exactly what you saw, or note that you couldn't inspect.
Not telling your cargo insurer. Most policies require prompt notice.
Letting the whole invoice ride. Ask for the undisputed balance now.

Broker holding your freight charges?

Our $19 packet builds a demand letter and a BMC-84 bond-claim letter from FMCSA data and your load details, with an exhibit checklist and timeline.

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Sources

FAQ

Can a broker just deduct a cargo claim from my freight bill?
It depends mostly on your broker-carrier agreement and rate confirmation. Many contracts include an offset or setoff clause. Without one, an unproven claim is usually a separate matter from the freight charges you earned. Read your contract and ask an attorney if the amount matters.

What makes a cargo claim valid?
Under 49 CFR 370.3, a claim must be in writing, identify the shipment, assert liability, and ask for a specified or determinable amount. A damage notation on a delivery receipt or an inspection report, standing alone, is not a claim.

How long does a carrier have to respond to a cargo claim?
Under 49 CFR 370.5 and 370.9, a carrier must acknowledge a written claim within 30 days and pay, decline, or make a firm compromise offer in writing within 120 days, with status updates every 60 days after that if it is still pending.

Check the broker first. It's free.

See authority status, authority age, BMC-84/85 on file, and the surety name from FMCSA records.

Broker owes you? Build a demand letter + bond-claim packet for $19.

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Not legal advice. This is a document-preparation tool, not a law firm. Results aren't guaranteed. Verify all info with FMCSA and consult an attorney for legal questions.