Released Value

Released value is the maximum amount a carrier will pay if your shipment is lost or damaged. This default liability limit is typically far less than the actual value of goods, and shippers must declare higher value (and pay extra) to increase coverage.

Understanding Released Value

How It Works

• Carrier liability is capped by default
• Shipper “releases” carrier from higher liability
• Built into carrier’s standard terms
• Lower rates reflect limited liability

Default Liability Examples

Released Value vs. Actual Value

Example Scenario

Shipment: Laptop computer
Actual value: $1,500
Carrier released value: $100

If lost:
- Without declared value: Carrier pays $100
- With declared value at $1,500: Carrier pays $1,500
  (requires additional fee)

The Gap

┌─────────────────────────────────────┐
│ Actual Value: $1,500                │
│ ███████████████████████████████████ │
│                                     │
│ Released Value: $100                │
│ ██                                  │
│                                     │
│ Gap (unprotected): $1,400           │
│ ░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░░│
└─────────────────────────────────────┘

Parcel Carrier Released Values

UPS

• Default: $100
• Declared value: Up to $50,000
• Fee: $0 for first $100, then ~$3/$100

FedEx

• Default: $100
• Declared value: Up to $50,000
• Fee: ~$3.50/$100 over $100

USPS

• Priority Mail: $50-$100 included
• Priority Mail Express: $100 included
• Insurance purchased separately

Freight Released Values

LTL Carriers

• Often $0.50 to $2.50 per pound
• Based on weight, not value
• Very low for light, valuable goods

LTL Example

Shipment: Electronics
Weight: 200 lbs
Value: $5,000
Released value @ $2/lb: $400
Gap: $4,600 unprotected

Ocean Freight

• COGSA: $500 per package
• Package definition matters
• Container could be one “package”
• Declare value for protection

Declaring Higher Value

When to Declare

• High-value shipments
• Cargo value exceeds released value
• Important/irreplaceable items
• Customer requires coverage

How to Declare

1. Enter declared value when shipping
2. Pay additional fee
3. Keep proof of value
4. Understand exclusions

Declared Value Fees

Released Value vs. Insurance

Key Differences

When Insurance Is Better

• Very high value cargo
• Need broader coverage
• Carrier exclusions concern you
• International shipments
• Consistent high-value shipping

Limitations of Declared Value

What’s NOT Covered

• Improper packaging by shipper
• Inherent vice (product defect)
• Prohibited items
• Undeclared hazmat
• Certain exclusions in terms

Proof Required

• Original purchase receipt
• Manufacturer invoice
• Appraisal
• Photos of item

Released Value in Freight

Bill of Lading Terms

RELEASED VALUE: Shipper hereby releases
carrier's liability to $2.00 per pound
unless higher value is declared and
additional charges paid.

Declared value: ________
Signature: ________

NMFC/Freight Class Interaction

• Some freight classes require declared value
• High-value commodities may need declaration
• Affects freight classification
• Check with carrier

Best Practices

For Shippers

1. Know carrier’s default liability
2. Compare value vs. released value
3. Declare value when warranted
4. Keep proof of value
5. Consider insurance for high-value
6. Read carrier terms carefully

Cost-Benefit Analysis

Item value: $2,000
Released value: $100
Declared value fee: $60
Insurance cost: $25

Decision: Pay $60 declared value or
$25 insurance? Check coverage differences.