PDS will assume liability for cargo loss and damage occurring during its transportation services in accordance with the provisions of 49 U.S.C. 14706.

PDS will not be liable for the following: (1) damage to cargo or equipment to the extent due to packaging, loading, unloading, blocking, bracing or securing of the cargo (unless PDS was engaged to provide such services); (2) inherent vice or defect in the cargo transported, including rusting of metals, swelling of wood caused by humidity, moisture or condensation, deterioration of perishable products, or damages caused by heat or cold; (3) force majeure events; (4) an act or default of any Customer, consignor, consignee or beneficial owner; or (5) shipments stopped and held in transit at Customer’s request.

PDS’s liability for any cargo loss or damage will not exceed $100,000.00 per container or trailer unless before the shipment is transported, PDS has approved a higher limit of liability in writing signed by an authorized representative. All transportation rates are conditioned upon such limitation of liability. This limitation will apply whether or not the released value is stated on the bill of lading. Customer may request an increase in legal liability by submitting a written request for a higher released value, and paying an additional fee depending on the desired released value. Due to the administrative costs, PDS will not process or pay cargo claims for less than $100.

As a condition precedent to recovery, claims for loss or damage to cargo must be filed in writing with PDS within nine (9) months from the delivery date, or the scheduled date of delivery for lost shipments, or in the absence of a scheduled delivery date, the filing period shall begin after a reasonable time has elapsed for delivery. A civil suit or arbitration proceeding for cargo claims must be commenced against PDS within two (2) years and one day from the date PDS gives Customer written notice that PDS is disallowing the claim or any part of it.

Customer will use reasonable efforts to provide immediate notice of cargo loss or damage upon discovery to allow PDS to inspect the loss and damage and determine its cause and to prevent reuse of damaged intermodal containers or trailers.

Cargo claims should include the following information: (1) a demand for payment of a specified dollar amount accompanied by documentation to verify the amount of the demand such as certified copies of repair invoices or actual product costs; (2) information to identify the shipment such as container/trailer number, date of shipment, origin and destination of the shipment, shipper’s, consignee’ and notify party’s names, and bill of lading number; (3) legible copies of shipping instructions, the delivery receipt and other shipping documents; (4) the applicable salvage amount; (5) legible copies of the loading and unloading tally denoting contents and quantities of each of the packages involved in the shipment and seal record (particularly for shortage claims); (6) supporting documentation detailing the nature of the damage or loss (such as photographs); and (7) any import declaration (if applicable).

The measure of damages for loss of or physical damage to the cargo shall be the lower of the actual value of the lost or damaged commodity at origin or at destination, reduced by a reasonable amount for salvage. PDS shall be liable for the reasonable costs of the Customer to mitigate its damages. In no event shall PDS be liable to Customer or anyone else for special, incidental, or consequential damages that relate to loss, damage or delay to a shipment, unless Customer has informed PDS in written or electronic form, prior to or when tendering the shipment to PDS, of the potential nature and type of such damages, and PDS specifically agrees in written or electronic form to accept responsibility for such damages. In no event shall PDS be liable to Customer or anyone else for punitive or exemplary damages that relate to loss, damage or delay to a shipment.

If Customer loads and seals the cargo within the trailer or container and PDS does not have the opportunity to count the cargo being loaded and the seal is intact upon delivery, PDS will not be liable for shortages or any damage to the cargo except when proximately caused by independent action of PDS. PDS will also not be liable if (1) the seal is broken at the direction and under the supervision of an agent of a governmental authority, or (2) trailers or containers are preloaded and the adequacy of loading or count of such trailer or container cannot be practically determined by a PDS representative. If a seal is broken for an inspection by an agent of a governmental authority, PDS will request that the governmental authority reseal the trailer or container and/or make appropriate notation on the freight documentation form. PDS may break the seal on a trailer or container if, upon PDS’s determination, it becomes reasonably necessary to do so to inspect, reposition, or protect the cargo or the Equipment or to comply with federal, state, municipal, or provincial laws. The consignee of a shipment may not refuse delivery of a shipment solely because the seal on a trailer or container is broken.

Customer must cause the consignee to accept delivery of a shipment and is not entitled to abandon any shipment to PDS. The consignee has a duty to mitigate damages by accepting damaged cargo unless it is of no value and without salvage value. The obligation to mitigate damages also includes replacing damaged cartons and packaging, relabeling freight and undertaking other repairs and replacement of packaging. Customer will have the right reasonably to determine to repair, repackage, salvage, or scrap damaged cargo. If Customer does not elect to salvage cargo, any claim for cargo loss or damage shall nevertheless be reduced by a reasonable salvage allowance. If Customer elects to salvage cargo, Customer shall notify PDS to return the cargo to Customer or allow PDS to dispose of the cargo. Any amounts received in salvage, whether accomplished by PDS or Customer, will reduce the amount of the cargo claim. Customer may condition salvage upon the removal of all identifying marks or labels or the cargo being permanently marked as "damaged" or with a similar notation. If PDS is retained by Customer to return the damaged cargo for repair, salvage, or scrapping, Customer agrees to pay PDS standard transportation rates or other mutually agreed to rate, without prejudice to the Customer’s right to recover such freight charges as damages. Damaged cargo will not be scrapped unless repair and/or salvage are not feasible. If PDS salvages the cargo, PDS may bill a reasonable charge for doing so against salvage receipts.

PDS does not accept legal liability for cargo loss or damage to shipments while moving in Mexico.