Whose Bill of Lading to use?

loaders

loaders

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Feb 26, 2008
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As a broker operating for over 20 years, we have seen all sorts and types of Bills of Lading. It has been our experience, that a majority of shippers prepare their own Bills of Lading and that most carriers accept and use these to complete the act of transportation. It has always been my belief, that although the shipper has prepared a B/L, the onus is on the carrier to create his own, using the details i.e. description, weight, etc., from the shipper's. The reason for this is that a shipper B/L could (and sometimes does) incorporate clauses regarding insurance coverage, scheduled delivery, etc. that are outside the usual, regulated conditions of carriage. Once a driver has signed the shipper B/L, isn't the carrier bound by the terms and conditions of that B/L, and not by the terms and conditions of his own? I guess what I am asking is, are drivers cautioned about what to sign and what not to sign at pick-ups?
(Disclaimer: we have had a rash of stupid freight claims over the last month and I am "on the war path" about paperwork and proper procedure.)
 
I make my own BOL which has all the information on it ie, collect, prepaid, 3rd party, broker, etc and send it to the shipper and request he uses mine. However, I deal with a lot of LTL carriers (D & R, New Penn, Quik-X, UPS, YRC, etc) so this is a requirement because if the shipper marks collect on their BOL, the trucking company will actually try to collect the astronomical freight charge (not my discounted rate) to the consignee. This is one reason why I do my own. When dealing with BIG outfits, it is necessary. Another reason would be that at least all the insurance, double brokering clauses, etc info that you want on the BOL is there to cover your butt, so if there is a claim, it's on your grounds, not the shippers. It's just a habit I got into and most shippers appreciate not having to do one up. I've only had 3 claims in 4 years because I've used my own. My 2 cents worth.
 
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Valerie K, I appreciate your comments, but as a broker, I believe you are exposing yourself to problems if the shipment travels under your B/L. We too have our own Bills of Lading and we count on either the carrier or the shipper to fill-in the blank that says "carrier". Unfortunately sometimes they forget. The shipment should travel on the B/L of the carrier that is actually hauling it. It is his/her a** on the line if problems arise and rightfully so. As well, don't think for a moment, that a smart lawyer acting on behalf of a carrier's insurance company will not explore any avenue to avoid settling a large claim. If the Bill of Lading identifies you as "the carrier", it only muddies the water if you have to defend yourself in court. Don't forget, judges are not always well versed in transportation law and will only look at what appears obvious and on paper.
 
noproblembuddy said:
My pet peeve is when you give freight to a carrier who then substitutes their OWN bill of lading for the original. I love Polaris but hate their practice of doing that all the time.
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I have this issue constantly. I need to invoice my customer with a copy of the shippers BOL and often the carrier creates their own and junks the shippers BOL. I am OK with the carrier using their own BOL but please retain a copy of the original shipping docs!
 
Same situation here Dietcoke. Again, the question I am posing is, should the carrier, for his own protection, not insist that his drivers make-up their own Bill of Lading? By all means, keep the one the shipper issued and send it along with their own when they invoice. I know it is easier just to sign the shipper's B/L and go on your merry way, but it can and does create problems when the sh** hits the fan.
 
noproblembuddy said:
My pet peeve is when you give freight to a carrier who then substitutes their OWN bill of lading for the original. I love Polaris but hate their practice of doing that all the time.
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I agree, everyone is making their own BOL's now..... Day and Ross, Apex, Quik X, the list goes on. Most companies with large fleets are making their own *delivery receipt* as they like to call it. At least the larger companies *image* the original
 
In the cases where we are talking about dealing with a common carrier, then the broker making their own BL with 3rd party billing makes sense.

But if it's a contract carrier pulling loads, it's not really necessary for two reasons, and is actually detrimental:
a) if for the customer direct, there should be a blanket terms and conditions page that is understood between both parties that is acknowledged, and therefore supersedes the actual BL
b) if loading for a broker, the broker is the carrier -- the actual carrier is an agent for the broker ... what the actual carrier is bound by is the contract (load sheet) between themselves and the load broker.
 
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DIETCOKE said:
I have this issue constantly. I need to invoice my customer with a copy of the shippers BOL and often the carrier creates their own and junks the shippers BOL. I am OK with the carrier using their own BOL but please retain a copy of the original shipping docs!
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My company has practiced the policy of making out one of our B/L, plus retaining all original paper work and having it signed. Some shippers so called B/L is just a packing list w/o a destination or origin - just part numbers not even a description.
 
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Rickwill, you are right about shippers B/L's being deficient in some areas, which is why a carrier should always complete their own paperwork. Theman, I disagree about the broker acting as agent for the carrier in any situation. To do so, opens the door for the broker to be held liable along with the carrier in the event of an accident or serious claim. The broker must be viewed as acting on behalf of the shipper. It is he/she that receives and acts upon the shippers instructions and should remain independent of the carrier. The B/L is signed by the shipper and the carrier, they are the two parties to the contract of carriage. The broker is the "arranger or facilitator" who brings the two parties together and receives a fee for that function. Brokers can service their customers in many different ways, which is why many shippers use them, but it is the carrier that performs the actual transportation.
 
Theman. I agree with loaders on this issue. Quote - "Theman, I disagree about the broker acting as agent for the carrier in any situation. To do so, opens the door for the broker to be held liable along with the carrier in the event of an accident or serious claim."

The legal concept here is "attached liability", which I assiduously avoid for obvious reasons. I have had well meaning shippers write us in as the carrier, but put a stop to it as soon as I saw our name on the B/L. The carrier's B/L should supersede the shipper's if both are used. I do require both signed, if the customer wants to use the shipper's for substantiation of the invoice.
 
I think it depends largely on the relationship with the customer. If you're under contract, then the broker becomes the carrier. Admittedly, there is liability taken on by the broker -- it's part of the value added.
 
I am sorry but I do not believe that it really matters who's bill of lading the freight actually travels on.
When I broker freight to a carrier for MY customer and should something happen to the freight, MY customer comes to me and I go the carrier doesn't matter if the freight went on the shippers BOL or the carriers. They are my customer and I am the carriers customer so to speak. The contract (load sheet) is between myself and the carrier. The customer has no involvement and doesn't want to have to deal with it, that is why they hire a Freight Broker.

And the same goes for our trucks. We make up a BOL should the shipper not provide one for some reason but otherwise if the shipper provides one we use it. If anything happens to the freight we are held accountable by the load broker that gave us the shipment.
 
Xwestcarriers, in a perfect world you would be right. However, if a problem occurred that required the courts to settle, they would look first at the Bill of Lading to determine who the parties to the contract are. The reason for my post was to emphasis the importance of determining who these parties are. If as a broker, you want to be identified as a carrier on the B/L and assume all of the risks and responsibilites that come with that, so be it. Load sheets or load confirmations would play a very minor role in the courts findings because they are not a legitimate, recognized contract like a B/L. Regardless if you are a broker or a carrier, a proper, complete B/L is your best defence if you find yourself on the wrong side of a court battle. Don't forget, it will not be your friendly customer arguing their position in court, it will be their lawyer.
 
It's nice to read all the thoughts, internal policies and ideas of everyone here. Of course there are few items that really need to be remembered:

A Bill of Lading must be issued - you'd be shocked at the instances of carriers calling in transit advising the driver was never given a BOL.. WOW. No further comment necessary.

A brokers company name should never appear in the 'carrier' box on the BOL. For brokers, ask your insurance company they will remind you of this detail.

No individual or company is able to 'contract' another party to terms and conditions that are contrary to law. I find it interesting how many actually try.

Courts do love to look at the BOL and applicable laws before any 'agreements' - it makes sense to offer uniform decisions. Also, it only makes sense as the BOL is usually the one signed by shipper, carrier, consignee. Of course there are instances of several used in transit.

Let us all be thankful that most of the time we are all negotiating about a 'torn bag' or 1 damaged box as claims typically cost everyone in time, administration and actual funds.

I enjoyed reading everyones comments, it's a reminder of the various perspectives. We have likely all learned from our 'lessons' in the past...

I'm sure there will be more postings on this and look forward to reading those too.

Keep well,

Mike
 
Bills of lading

We always use the "shipper's" bill of lading, and driver's also use our company's bill of lading, and obtain signatures on both. We then send the orginial shippers bill of lading to the customer, and keep our orginial bill of lading on file with a copy of shippers bill.
 
As a broker I always try to use the loading carriers BL. I fill it all out and make sure I'm marked as the bill to with quote or account #s etc and I send it out to the customer. They just approve it, print it & give it to the driver. If anything needs to be changed I update it and resend.
The way I look at it, most of the carriers I deal with do the BL switch anyway, so I may as well have my shipper use the loading carrier's BL to begin with.

If I don't have the loading carrier's BL then I send mine and the carrier I booked is marked as an agent.
 
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