Discussion in 'Insurance' started by Michael Ludwig, Jan 5, 2015.
Truer words have never been spoken.
Remember, the Bill of Lading is also referred to as "the contract of carriage". Like any "contract", it should be fully understood, and fully completed by all the parties to it, shipper, carrier (or his agent....the driver) and consignee. Unfortunately, in the real world, it has become just another piece of paper 99.9% of the time. Whenever any carrier gets their drivers together for a meeting, it might be good idea to remind them that the B/L is a whole lot more important than just a piece of paper with the receivers signature on it.
Coming late to the party ... Don't know how this ever worked out for you, hopefully to your benefit, but your shipper is 100% correct. Without the bill of lading you are liable for whatever they want to charge.
You've done the right thing. Let the "big-boys"fight it out. That's what you pay them for.
I want to thank everyone for their posts on our problem. Their are many different views on this. We do not have a BOL, we do not have anything that says we damaged anything, BUT we want to do the right thing.
Because of the different points of view, we have turned it over to our Insurance company, and when it is said and done, I will post what I found out and the results. Thanks again.
great ! thanks for clearing that up for me ! much appreciated !
Yes you would claim the total weight of the BOL.
so if I have 2 skids ( each weighing 100 lbs per skid ) and 1 skid gets damaged with a cost of $ 500. We would be able to claim 200 lbs x $ 2.00 per lb for $ 400 ?
I thought you could only claim the 100 lb skid times $ 2.00 / lb for $ 200 claim.
Hey Friendly they do the $2 lb on the total weight of the BOL, not sure why but we deal with every major LTLer in the country and they are all the same. As far as the rest of your comments we treat people they way we want to be treated so if the customer is an ass then treat them the same. But like i said earlier let the insurance company deal with it that is what they are there for.
going slightly back to the beginning of the post, it was written that the second version would be how this would be claimed. Liable for $ 2000 because it goes by the total weight of the shipment. How can the claim be against the total shipment when only 50 units were damaged. Would it not be 50 units x weight of units - equalling total weight x $ 2/ lb ? I can't see how if 50 units were damaged, you would factor in the total weight of the shipment to cover the loss. Also.. another question. If the shipper secured the units, would he not be responsible at this point ? and second off. they brought the freight back and had it swapped out for good product. Is it written anywhere that the damaged product was returned ? if not, in the case with a shipper being a ****, could you not say I picked up 100 units and delivered 100 units.. prove I damaged 50. ? ? ?
If thats the case you need to tell the broker to tell their customer to show $2.00 per pound maximum liability on their bill of lading. This is also for their protection. Or show valuation, and you should charge additional insurance to cover. You can't be expected to be liable for a million dollar load if you are not adequatly covered. Its not worth the risk.
If the shipper is a stand up company and did not have a declared value then it is $2 a lb. We ship product that is worth more than $2 a lb but if we put the declared value on every BOL we would pay more than any damage we ever incur. It is our decision and we do have insurance to cover the overage if it is a big loss (thank god it has not happened) so I would not be bullied into paying more....actually let your insurance company handle it that is what they are there for, unless you have had a lot of claims this should not affect your insurance rates and it takes you out of the conversation.
We work for a lot of brokers and what we are finding out is that they will not pay us if we use our BOL. They tell us that we have to deliver on the shippers BOL. We find now we are unsure what to do to cover the $2 lb issue.
I understood that the $2/lb is a give in (if no BOL).
Lets put it this way:
You (your driver) can sign at the time of pickup agreeing to a declared value, or to $2/lb as is common on most BOLs. If there is no term regarding value nor liability that the 'maximum' liability would be then by default that contained in the statute ($2/lb). I'm going by memory but this thread comes up once or twice a year...
Actually Pitbull99, i you use somebody else BOL, you agree to their terms.
The 2$ per pound is written on the carriers BOL, never the shippers documents.
A carrier should always use his own BOL even when the shippers gives him paperwork and make sure the shippers put his signature on his BOL.
Yes I believe all drivers should double check the security of the load if at all possible. We want to work with the shipper and want to be fair, but we are having words back and forth on the $2 / lb issue. They say we waived our rights on the $2 lb since their is no BOL.
I don't want to sound negative. I think drivers have a big responsibility and generally do a great job, but probaby in this case should have double checked the shipper's strapping job. Even if they are not the ones securing the load, they should be checking to make sure the load is properly secured. Unfortunate circumstances.
I believe that is one of the problems, there is nothing in writing, we just backed in, the shippers swapped out the damaged units, nothing was documented. We are willing to work with the shipper, we just want to be fair. Our driver told us that the shipper secured the load, and they have a picture of where the strap came uphooked with the damage to the slot on the trailer.
Who told you the shipper secured the cargo? Do you have it in writing? If the shipper has admitted in writing they were responsible for the securement they accept responsibility for the damages.
Update, We loaded 100 units and the shipper secured the load with a strap. Driver pulled away from dock closed the doors, pulled out onto the street and heard a noise in the back.(product on wheels). The driver pulled over to the side of the road and looked into the back of the trailer and seen that the strap let go from the wall. The driver then went right back to the shippers. The shipper took off the 50 damaged units and replaced them with new ones, secured the freight again and the driver left. NOW the shipper wants paid in full for the damaged units because we do not have a BOL. They are saying we gave up our rights to the $2 / lb because we do not have a BOL. I would appreciate anyone thoughts on this. Thanks