Freight time limits
Time limits on collecting freight charges.
Freight charges can expire faster than ordinary business debts. Here are the main deadlines in general terms. Confirm which apply to your shipment with counsel.
The federal 18-month rule
For transportation by motor carriers subject to federal jurisdiction, 49 U.S.C. § 14705(a) generally requires a carrier to begin a civil action to recover charges within 18 months after the claim accrues. Accrual is generally tied to delivery or tender of the shipment. Section 14705 also sets time limits for shippers' overcharge claims. These deadlines are relatively short compared with many state contract statutes of limitations. Note that sending a demand or filing a bond claim may not, by itself, stop the clock.
Does it apply to brokers?
Whether the 18-month limit governs a particular claim (for example a carrier's claim against a broker under a broker–carrier contract, or a broker's claim against a shipper) depends on the type of claim and how courts have treated it. Some such claims may instead be governed by contract terms or state law. Don't assume the longer period applies. Get advice early.
Cargo loss and damage claims are different
Shipper claims against carriers for lost or damaged cargo (Carmack claims) have their own minimum periods: carriers generally may not require less than 9 months to file a written claim, or less than 2 years from written denial to sue. Check the bill of lading and tariff. These are often deducted from freight bills, which leads to short-pay disputes.
State law and contracts
Intrastate moves, contract carriage and some broker disputes may follow state statutes of limitations and contract provisions instead. See our state pages for general periods, and our statute of limitations guide.
Not legal advice. This page is general information about U.S. freight-payment rules, not legal advice. Federal and state transportation law is technical, depends on the facts and changes over time. FMCSA rules on broker financial security were also being updated as of this writing. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a transportation attorney about your situation.
More freight collection guides
Frequently asked questions
How long does a carrier have to collect freight charges?
For many interstate motor-carrier shipments, federal law generally requires suit within 18 months after the claim accrues (49 U.S.C. § 14705). Other rules may apply depending on the claim.
Does sending a demand letter extend the 18-month deadline?
Generally you shouldn't assume it does. Filing suit is what typically matters, so consult an attorney well before the deadline.
What is the time limit for a cargo damage claim?
Carriers generally can't require less than 9 months to file a written cargo claim or less than 2 years from denial to sue, but the bill of lading and tariff may set specific periods.
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