Freight claims

loaders

loaders

Site Supporter
Feb 26, 2008
3,531
4,389
113
30
Could someone please refresh memory? We recently had an LTL shipment that originated in the US for delivery in Canada. One of the skids had a bag that was damaged in transit and our customer filed an intent to claim for the replacement value of the bag -$292.47. We, in turn contacted the carrier and filed for this amount. The carrier has responded that their liability is $2.00/lb. and as the bag weighed 50lbs., they are only going to pay $100.00. For some reason, I was under the impression that in the US, the carriers liability was for replacement value of damaged product and that the $2.00/lb liability was only applicable here in Canada for domestic shipments. My research so far has discovered the Carmack Amendment, and that a carrier can limit their exposure by filing a tarif with DOT as long as they offer an all inclusive liability along with the lesser amount. I know that the amount is minimal, but for future reference, can someone shed a little more light here?
 
OK...to the best of my Knowledge:

Standard Liability IS $2/lb country of origin specific WITHOUT a declared value on the BOL.

If there is a declared value on the BOL then that would take precedent. Each carrier has their own Excess Value charge for the difference of the $2/lbs and actual value declared.
 
PackRat said:
OK...to the best of my Knowledge:

Standard Liability IS $2/lb country of origin specific WITHOUT a declared value on the BOL.
Click to expand...

This standard 2$ per pounds is the carrier standard that they put on their own BOL. If a shipper use is own BOL that say that all claims must be paid at the selling price and the carrier use it, then the carrier moves the freight to the shippers standard.

We just had a conference lunch with a lawyer who spoke about that and his best advice was that every shipper makes is own BOL, otherwise he will be under the carrier BOL conditions.

The 2$ per pound was introduce by carriers to protect carriers. If there is no mention on the carrier BOL about that 2$ per pound, then i think you might be ok to ask for the full payment
 
My information from our insurance company is that the person(s) making the intent to claim for in transit cargo from the USA is to be on the declared value of goods listed on the customs invoice or BOL and not the $2.00/lb rate.
 
Lowmiler88, that has always been my understanding. Although there is no declared value on the B/L, the value is clearly identified on the customs invoice. By the way, the carrier here is CSA Transportation, who had their agent in NJ p/u the shipment. As an additonal, by the way, what is the story with CSA? Are they a carrier with trucks that do the line haul portion and agents who do the pick-ups? Big fancy website, lots of locations. Just curious. Either way, we'll be paying the customer's claim for the full value.
 
Use the Custom Doc's as the value, I find with large LTL people the initial response to a claim is no but they will come around, they really have no choice as you can just go directly to their insurance company. We actually use CSA a lot and they do a good job and they do have equipment not sure about using a local in NJ to pick up. They also like to use their own Bill of Lading which we refuse to sign, we only sign the original shippers B/L.
 
Lowmiler 88, they used a company called Uncommon Carrier, who do exist as a local P&D, warehousing/cross dock operation in Jersey. CSA included with their invoice, a copy of their B/L and nothing from the shipper who is a large chemical supplier. Again, it is certainly not the amount of the claim that troubles me, but their "take it or leave it" attitude and the fact that they very well might be wrong in their understanding of their liability.
 
You must log in or register to reply here.
Top Bottom