$23.7 million liability case against
C.H. Robinson
Avalon offers SDDC Bond and Regulatory
Defense program for TIA members
Bill of lading requirements for
surface freight forwarders
Tips on how transportation brokers and
other companies that hire motor carriers can reduce their
liability exposure
CBP withdraws enhanced bonding
requirement for shrimp imports from India and Thailand
United States levies 10 percent import
tariffs on softwood lumber from four Canadian provinces
New FMCSA program expected to reduce
accidents
Upcoming Events
April 14-16
ECA Marketplace 2009
Chicago, Ill.
April 19-23
NCBFAA Annual Conference
Rancho Mirage, Calif.
April 30-May 1
IANA Intermodal Seminar
Oakbrook, Ill. |
Bill of lading
requirements for surface freight forwarders
The Federal Motor Carrier Safety
Administration (FMCSA) issued a final rule, effective May 6,
requiring surface freight forwarders to issue a receipt or
bill of lading, covering transportation from origin to
ultimate destination, on each shipment for which it arranges
transportation in interstate commerce.
While the current rule concerning receipts or bills of
lading applies only to household goods freight forwarders,
the new rule applies to both household goods and
non-household goods freight forwarders.
The requirement for all freight forwarders to issue a
receipt or bill of lading has been in effect by statute
since 1942. The statutory requirement to provide a receipt
or bill of lading was implemented in order for claimant
parties (shippers) to make a prima facie case against motor
carriers and freight forwarders under the Carmack Amendment.
In 1990, the former Interstate Commerce Commission changed
its regulations to limit the requirement to household goods
freight forwarders.
Based on information the FMCSA compiled, the agency believes
that most freight forwarders have, for many years, been
aware of this statutory requirement. Issuing a receipt or
bill of lading is a “well established, usual and customary
business practice of general commodities freight forwarders
and the industry as a whole.” Accordingly, the agency states
that practical consequence of the final rule for the vast
majority of freight forwarders is negligible.
The final rule may be viewed in its entirety by
clicking here.
This final ruling provides a clear distinction as respects
transportation brokers and surface freight forwarders. It
states that surface freight forwarders must issue a receipt
or bill of lading for each shipment, while transportation
brokers clearly should not as doing so would lead to an
assumption of liability. Surface freight forwarders have
direct liability for loss or damage to cargo pursuant to
statute, regulations, their tariff and their bill of lading.
Transportation brokers only have liability for cargo loss or
damage in cases where their own negligence caused or
contributed to the loss.
Avalon’s Combined Transit Liability (CTL) program combines
Errors & Omissions Insurance with Cargo Legal Liability
Insurance for freight forwarders. Cargo Legal Liability
Insurance pays amounts a forwarder is legally obligated to
pay under bill of lading terms or as established in a court
of law. If sued by customers or their subrogating insurers,
coverage also includes defense costs. |
