Packaging failure
Every carrier's coverage denies claims where the packaging failed to protect the item “against normal handling.” USPS DMM 609 section 4.3 is one of the sharpest versions of the rule. Under-packed fragiles rarely pay out.
Liability
Item damaged in shipping: who is actually responsible
Not the carrier, first. The seller stands behind the sale to the buyer, then recovers from the carrier under the label's coverage terms. Marketplaces short-circuit that chain with their own guarantees, and freight shipments follow a different rulebook altogether — the National Motor Freight Classification, backed by the bill of lading the shipper signed. This page walks the four common shipment types and shows who pays whom in each.
By shipment typeChain of custodyWhat to file, when
Chain of responsibility
Seller to buyer first, then seller to carrier. The exact split depends on how the sale was written.
The four common cases, and who is on the hook first
The label term the parties agreed to at purchase is where the analysis starts. It decides both the moment title passes and the moment the risk of damage passes with it.
| Shipment type | Who owes the buyer first | Who eventually pays |
|---|---|---|
| Consumer sale, FOB Destination (default retail) | Seller | Carrier under the label's declared value, or the seller's own shipping-coverage product |
| Business-to-business sale, FOB Origin | Buyer bears the transit risk from pickup | Buyer files with the carrier as the beneficial cargo owner |
| Marketplace consumer sale (eBay, Etsy, Amazon, Shopify) | Seller, under the platform's buyer-protection policy | Seller recovers from the carrier or the platform's coverage product (Shipsurance, ShipCover, Route) |
| LTL freight, standard NMFC coverage | Consignee or shipper, depending on prepaid or collect terms | Carrier up to the NMFC per-pound liability for the class, or higher if declared value was paid |
The FOB rule is a default that a written sales contract can change, and marketplaces almost always change it in the buyer's favor. Federal common law under the Carmack Amendment governs interstate carrier liability, and it says the carrier is liable for damage to goods in transit — up to the amount declared on the bill of lading and subject to defenses (act of God, act of shipper, inherent vice, act of public enemy, act of public authority).
Where a claim can quietly die
Category cap
FedEx caps a set of categories at $1,000 of declared value regardless of the amount declared. Antiques, artwork, glassware and chinaware are on that list; a $4,000 vase pays $1,000 at best.
Freight receipt clean-signed
Signing an LTL delivery receipt without noting visible damage lets the carrier deny both the visible and any later “concealed” claim. The pen at the truck's tailgate is one of the two most important moments in a freight recovery.
Post-delivery theft is a fifth trap. Carrier basic coverage ends at the delivery scan, per USPS DMM, the UPS Tariff and the FedEx Service Guide. Porch piracy is a matter for the buyer's own insurer or a third-party product like Route.
Two documents that decide most disputes
On parcel: the label with the declared value amount, the packaging that meets carrier rules, and dated photographs of the parcel as tendered and as received. On LTL: the bill of lading with an accurate description, an accurate NMFC class and an accurate declared value, plus the delivery receipt with any damage noted before the driver leaves. Both live and die on paper; carriers do not accept a shipper's word for the value of an item.
Ship with the coverage on the label
The shipping calculator lets a shipper add declared value and adult signature at label purchase, and it prices the shipping-coverage add-on for higher-value parcels. Freight through freight review lets a person set the declared value on the bill of lading and remind the shipper what to check on the delivery receipt.
Where these rules come from
- United States Postal Service Domestic Mail Manual (DMM) 609 — the packaging failure exclusion and the delivery-scan boundary. Read 2026-08-11.
- United Parcel Service Tariff / Terms and Conditions of Service, United States — the $100 per-package baseline liability and the declared-value ladder. Read 2026-08-11.
- FedEx, Declared Value and the FedEx Service Guide 2026 — the $100 baseline, the sublimit categories, the “declared value is not insurance” language, the three proofs required for a payout. Read 2026-08-11.
- 49 U.S.C. Sec. 14706 (Carmack Amendment) — federal liability of interstate motor carriers for cargo damage. Referenced 2026-08-11.
- Uniform Commercial Code Sec. 2-319, F.O.B. and F.A.S. Terms — the default rule that FOB Origin passes risk of loss at the point of shipment and FOB Destination at the point of delivery. Referenced 2026-08-11.
Common questions
Who legally owns the item during transit?
It depends on the shipping terms of the sale. Under FOB Origin the buyer owns the goods once the carrier picks them up and bears the risk of transit damage; under FOB Destination the seller owns them until they arrive intact. Marketplaces often override these defaults with their own guarantees.
Can I make the carrier pay for the damage?
Sometimes. USPS, UPS and FedEx will pay a claim when the shipper proves the packaging met the carrier's own rules, the item is not on the excluded categories list, and the value is documented. The base label carries $100 of coverage on major services; anything above needs declared value added at label purchase.
Is a marketplace seller ever liable when the carrier caused the damage?
On eBay, Etsy, Amazon and most consumer platforms, yes, initially. The buyer's protection policy typically holds the seller responsible for delivering the item in the described condition; the seller then recovers from the carrier or the shipping-coverage product they bought.
Who is liable on an LTL freight shipment?
The carrier's liability is capped by the National Motor Freight Classification for the freight class of the commodity, unless the shipper declared a higher value and paid the surcharge. Any “concealed damage” claim must be filed within a narrow window — often 5 to 15 days — with photographs and the original bill of lading.
Do I have to accept a damaged shipment?
On parcel, refusing keeps the parcel in the carrier's custody and can strengthen a claim, but returned parcels can also delay a refund. On freight, always note the damage on the delivery receipt and photograph before the driver leaves; signing “clear” is what carriers use to deny concealed damage claims.