Liability & Claims
Liability for Loss & Damage
UPDS is a rail-affiliated freight broker of transportation that integrates multiple modes of transportation (rail and motor carrier) and/or distribution services (cross-docking, transloading) into a single, billable service. UPDS does not take title to a customer’s goods and relies on its business partners to provide the individual services required. As a broker, UPDS is not liable for cargo loss or damage.
UPDS enters into agreements with suppliers of rail, truck and intermodal transportation, warehousing and distribution services. As independent contractors, they provide underlying services that make up the integrated product offered by UPDS. UPDS requires United States suppliers to carry a satisfactory level of insurance while the product is in their care and custody. Liability for loss and damage shall rest with the parties UPDS selects to handle transportation and distribution of cargo. However, it is recommended that all customers provide their own cargo insurance or enter into custodial agreements with transloaders and warehousemen, particularly when goods are stored at a facility for any length of time.
Mexican cargo liability laws are exceedingly restrictive, both as to proof of negligence and maximum financial exposure. Only to the extent that UPDS can collect or receive payment from the Mexican transportation or distribution supplier responsible, will UPDS pay for loss or damage that occurred in Mexico or may have occurred in Mexico. UPDS strongly recommends that customers obtain Mexican cargo liability insurance for their Mexican shipments.
Damage and loss prevention is an effective tool to minimize costs. Find more information by linking to your business area from our Customers page.
Filing Claims With UPDS
Although UPDS is not liable for loss and damage claims, we will facilitate processing customer claims. This includes notification/verification, loss mitigation, salvage matters, and recovery. UPDS has contracted with Union Pacific Railroad’s Claims Department to administer loss and damage claims. Call UPDS or the UPRR Claims Department (1-800-521-3253) for further instructions as soon as you suspect or discover loss or damage.It is Union Pacific's policy to require the customer to pay freight charges for shipments associated with loss and damage claims; these freight charges should be included in the claim filed with UPDS. The customer is not entitled to reduce or prorate owed freight charges on the basis of percentage of lading damaged nor shall the customer debit or offset amounts owed UPDS with the value of a claim. UPDS reserves the right to terminate service immediately if freight bills are debited or reduced due to claims made against UPDS.
Customers may file claims directly with UPDS by completing the online claim form (PDF File) . Customers may also file directly with Union Pacific Freight Claims; you'll find contact information on the Claims Resolution Group page.