Carmack Amendment
Carmack Amendment is a United States federal law that regulates shipping by rail. The amendment was passed in 1887 and named after John F. Carmack, who was then the head of the Atchison, Topeka and Santa Fe Railway. The amendment allows railroads to pass on the cost of shipping goods to their customers, including the cost of shipping damage or loss. This amendment has helped to make rail transportation more affordable and efficient for businesses and consumers.
Thanks to the Carmack Amendment, businesses can ship their goods by rail without worrying about the extra costs associated with damage or loss. This has helped to make rail transportation a more competitive option for shipping goods. The amendment has also helped build a strong and efficient rail system, spurring economic growth, as businesses can now ship their products more cheaply and efficiently.
The Carmack Amendment has been criticized for the effect it has had on the trucking industry. The amendment allows railroads to charge their customers for shipping damage or loss. As a result, freight costs have risen because trucking firms are now required to cover these expenses. Some people believe that this is bad for the trucking sector and puts it at a disadvantage against railroads. Others think that the amendment is necessary to ensure that railroads can compete fairly against other forms of transportation.
Carmack expressly applies to shipments from the U.S. to adjacent foreign countries, such as Canada, transported on a through bill of lading. The amendment has also been applied to shipments between U.S. ports and foreign ports, as well as shipments that start or end in the United States but pass through a foreign country.
Related Links
The Carmack Amendment: Working with a 3PL & Freight Claims
FAQs About the Carmack Amendment
Carmack Amendment – Insurance Glossary Definition – IRMI.com
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