Subrogation is a legal doctrine whereby one party assumes the debt of, or the liability of, a second party; essentially assuming the same legal rights as the second. With an interstate moves, subrogation occurs on both the financial side and the liability side. The carrier whose authority is being used to transport the interstate shipment will receive all monies for all of the services performed and then subrogates (distributes) contractually required payments to the service providers. In terms of liability, the carrier will handle all cargo claims and then subrogate back to responsible party.