Chubb Sues FedEx Freight for Missing Cargo

The insurer seeks over $350,000 in damages after a California-to-New Jersey shipment failed to arrive intact.

Updated on Oct. 29, 2026 in Transportation

Chubb Sues FedEx Freight for Missing Cargo

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Chubb Insurance Australia Limited has filed a lawsuit against FedEx Freight in the U.S. District Court for the Northern District of California. The insurer claims FedEx failed to deliver three pallets and damaged four others from a 2022 shipment of electronic equipment.

Why it matters

The legal action centers on a claim under the Carmack Amendment regarding carrier liability for cargo loss and damage. Chubb contends that FedEx waived its right to deny the claim after reopening the file without issuing a final decision.

The lawsuit involves a shipment of 5,772 pounds of electronic equipment spread across seven pallets. Chubb is seeking damages totaling $354,396.06 for the missing and compromised items.

The players

Chubb Insurance Australia Limited

This global insurance provider specializes in property, casualty, and marine insurance solutions.

FedEx Freight

This subsidiary of FedEx Corporation provides less-than-truckload freight services across the United States.

Blackmagic Design

This Australian digital cinema company manufactures video editing software and professional cinema cameras.

The details

The shipment of 172 cartons of electronics originated in Livermore, California, and was destined for Hazlet, New Jersey. When FedEx attempted delivery, the consignee rejected the entire load due to the missing and damaged pallets.

May 31, 2022: Blackmagic Design contracted with FedEx for the shipment.
June 10, 2022: FedEx attempted delivery of the shipment in New Jersey.
October 27, 2026: Chubb Insurance filed a lawsuit against FedEx.

Market Landscape

This case highlights the ongoing friction between logistics providers and shippers regarding liability for high-value cargo under the Carmack Amendment. It underscores how carriers and insurers often clash when claims undergo prolonged internal review processes.

While this litigation focuses on commercial freight, it illustrates the importance of documented shipping protocols for businesses moving high-value equipment. Customers should ensure they have comprehensive cargo insurance to protect against losses when shipments are rejected or damaged in transit.

The takeaway

Businesses shipping high-value items should carefully review carrier insurance policies and the status of claim files to ensure disputes are resolved clearly. Maintaining precise documentation is essential for exercising rights under federal cargo liability laws.