Transportation & Logistics Council, Inc.

Q&A – Archive I

 

 


1)           Air Freight - Declared Value and Insurance. 4

2)           Air Freight Forwarder - Liability for Theft 5

3)           Bar Code Errors. 6

4)           Bills of Lading - "Straight" vs. "Order". 7

5)           Brokers -  Withholding Payment for Claim on Prior Load. 8

6)           Brokers - Assumption of Liability for Loss & Damage. 9

7)           Brokers - Caught in the Middle. 10

8)           Brokers - Liability for Non-Delivery. 11

9)           Brokers - Licenses. 12

10)         Brokers - Name on Bills of Lading. 13

11)         Brokers - Protecting Shippers' Interests. 14

12)         Brokers, Agents and Third Party Logistic Providers. 15

13)         Bumping Privilege - NMFC Item 171. 16

14)         Bumping Privilege - Limited to Shippers. 17

15)         Carmack Amendment - Who is Covered?. 18

16)         Carrier Holding Freight "Hostage". 19

17)         Carrier Use of Shipper's Forklift 20

18)         CDL Licensing. 21

19)         Claims - Mitigation of Damages. 22

20)         Claims - Prepaid Freight Charges. 23

21)         Claims - Recovering Freight Charges on Partial Deliveries. 24

22)         Claims - Regulations and Procedures. 25

23)         Claims - Repackaging Expenses. 26

24)         Classification of Shipments. 27

25)         Common Control - Shipper and Broker. 28

26)         Concealed Damage  - Canned Goods. 29

27)         Concealed Damage - Clear Delivery Receipt 30

28)         Contracts - Consignee-filed Claims. 31

29)         Contracts - Incorporation of Rate Tariffs. 32

30)         Contracts - Released Rates on Computers. 33

31)         Court Decisions on Carrier Liabilty. 34

32)         Cross-Docking for Lower Rates. 35

33)         Customer Chargebacks. 36

34)         Damages - Missed Delivery Appointment 37

35)         Damages - Special Damages for Rail Service Failures. 38

36)         Definitions - Logistics Company. 39

37)         Definitions - Property Broker as Shipper. 40

38)         Definitions - Shipper’s Load and Count 41

39)         Detention Charges. 42

40)         Discount Rates - Discounted from What?. 43

41)         Duty to Accept Damaged Goods. 44

42)         Factoring Companies. 45

43)         FOB Terms vs. Payment Terms. 46

44)         Freezing of Perishables. 47

45)         Freight Bills - Time Limits. 48

46)         Freight Bills Received After 180 Days. 49

47)         Freight Charges - Billing to Customers. 50

48)         Freight Charges - Broker Out of Business. 51

49)         Freight Charges - Shipper Liability to Subcontractor. 52

50)         Freight Charges - Shippers Liability. 53

51)         Freight Charges - Shipper's Liability; "Section 7". 54

52)         Freight Charges - Statute of Limitations. 55

53)         Freight Forwarders - Legal Requirements. 56

54)         Holding Freight for "Ransom". 57

55)         Household Goods - Estimates. 58

56)         Household Goods Damages. 59

57)         ICCTA - Clarification. 61

58)         Improper Loading  - Act of Shipper. 62

59)         Insurance Requirements - Courier & Messenger Services. 63

60)         Interstate vs. Intrastate. 64

61)         Late Payment Charges. 65

62)         Liability - Carrier’s Liability on Refused Shipments. 66

63)         Liability - Custom Order Goods. 67

64)         Liability - Limitation When Broker Involved. 68

65)         Liability as a Rate Factor. 69

66)         Liability for Stolen Freight - Carrier's Terminal 70

67)         Liability on Sealed Container Shortage. 71

68)         Limitation of Liability - No Bill of Lading. 72

69)         Loading and Unloading - Driver Injuries. 73

70)         Lumping Fees. 74

71)         Measure of Damages - Limits & Consequential Damages. 75

72)         Measure of Damages - Released Rate Shipment 76

73)         Measure of Damages - Repair Cost 77

74)         Measure of Damages - Return Shipment 78

75)         Measure of Damages - Return Shipment 80

76)         Notice of Claim - Rail Shipments. 81

77)         Notice of Refused or On-Hand Freight 82

78)         NVOCC'S  and Ocean Freight Forwarders. 83

79)         Offsetting Claims Against Freight Charges. 84

80)         Overcharge Claims - A Solution to the 180-Day Rule?. 85

81)         Refused or Rejected Freight 86

82)         Remedies - Carrier Holding Freight Hostage. 87

83)         Responsibility for Consequential Damages. 88

84)         Retention of Bills of Lading and Similar Documents. 90

85)         Retention of Shipping Documents. 91

86)         Return of Damaged Goods. 92

87)         Risk of Loss in Transit 93

88)         Salvage - Food Products Damaged in Transit 94

89)         Salvage - Inspection of Damaged Shrubs. 95

90)         Salvage Allowance - Safety Risk. 96

91)         Salvage Allowance; Arbitrary Percentage. 97

92)         Salvage Value - Returned Damaged Freight 98

93)         Shipper Liability for "Dropped Trailers". 99

94)         Shipper's Duty - Proper Loading. 100

95)         Shipper's Load & Count - Multiple Stop-off  Shipments. 101

96)         Shipping Records -  Retention. 102

97)         Shortages - Rail Shipments. 103

98)         Special Damages - Customer Chargebacks. 104

99)         Special Damages - Express Freight Charges. 106

100)       Statutes and Regulations. 107

101)       Storage on Refused Shipments. 108

102)       Surface Transportation Board. 109

103)       Tariffs - Participation by Carriers. 110

104)       Time Limits - Collecting Freight Charges. 111

105)       Time Limits - International Air Freight; Partial Loss. 112

106)       Time Limits for Filing Overcharges. 113

107)        Time Limits: Exceptions to "9-Month" Rule for Filing Claims 114

108)       Time Limits; 9-Month Limit for Filing Claims. 115

109)       Transportation Contracts - Requirements. 116

110)       Truck Drivers - Overtime. 117

111)       Unreasonable Rules in Railroad Contracts. 118

112)       What's in a Name? - Carrier Mergers and Shipper Liability  119

 

 

 

 

1.  Air Freight - Declared Value and Insurance

Question:      We send shipments out by air freight and will declare a value of $1,000.00 per shipment, which is the amount of our insurance deductible, even though the value may be much greater. The question is, have we prejudiced our ability to collect the invoice value from the insurance company by only declaring a $1,000.00 value on the air way bill?

Answer:  By declaring a lesser value on the air waybill, you have prejudiced your insurer's ability to recover the full invoice value from the carrier through subrogation. You would have to review the particular insurance policy as some policies allow the shipper to ship under a bill of lading with a released rate or limitation of liability, and some do not.

Is the shipment domestic or international? The liability differs. Domestic could be 50 cents per lb., 50 cents per lb. per piece, or $9.07 per lb. per piece.  International is now 17 SDR's per kilo, or about $10.41 per lb. per piece.

As to the declaration on the air waybill, if you declare the value at $1,000, the carrier will assess an excess value charge for the amount of value that exceeds its tariff limit, whatever that may be. For example, if a shipment weighs 500 lbs. and has an invoice value of $5,000, that's $10 per lb. But if the airline's liability is only 50 cents per lb., or $250, it will charge its excess value charge for $750.00. That could be 35 cents to $1.00 per $100 of excess value, depending on the carrier's tariff. ($26.25 to $75.00)

It may be cheaper to have the insurance deductible set at the carrier's liability limit. The shipper would file claims against the carrier for its tariff limit, and the insurer will pick up the losses over that limit. Insurers' premiums are usually much cheaper than carriers' excess value charges.

As to your question about the insurer's subrogation claim against the airlines, the insurer must claim the actual invoice value of the loss. However, the airline will only pay up to the limit of its liability unless a higher value has been declared. If you are successful in changing your insurance policy as suggested above, there will be no need to file claims against the airline, as you will recover up to the limit of the airline's liability.

2.  Air Freight Forwarder - Liability for Theft