$2 lb

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pitbull99

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Jan 30, 2008
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If anyone could comment on the following situation, it would be appreciated.

We picked up 100 units weighing 1000 lbs. 50 units were damaged. Using the BOL, that says we are liable for $2.00 a pound. Would we be liable for a total of $1000 or $2000.
The actual cost to replace is $5000.

One version is we are only liable for $1000 because only 50 units were damaged.

The second version is we are liable for $2000 because it goes by the total weight of the shipment not the individual units.

If anyone else had this situation, I would appreciate your response. Thanks
 
Rob said:
And tell them you want the damaged freight back if you are paying for it then it belongs to you.
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He's not paying for it and only wants to contribute 20% to the bill for the damage he caused. I can't see this plan working for you pitbull and if it does the next load of flat screens I haul may go missing and I'll be standing at their door with the $2/LB. Pls keep us posted.
 
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MarkD said:
He's not paying for it and only wants to contribute 20% to the bill for the damage he caused. I can't see this plan working for you pitbull and if it does the next load of flat screens I haul may go missing and i'll be standing at their door with the $2/LB. Pls keep us posted.
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Someone is paying for it (carrier or insurance company) and they are entitled to the "salvage" are they not?
 
The salvage depends on the product if it is normal everyday product then yes but if it has anything to do with Health Canada it has to be destroyed. Generally anything tracked like food or over the counter drugs would have to have a proper destruction certificate.
 
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
 
pitbull99 said:
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
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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.
 
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.
 
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.
 
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.
 
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.
 
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...

KCCO,

Mike
 
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.
 
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.
 
pitbull99 said:
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.
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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.
 
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