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In this series, we are going to try to answer some of the questions that I have come across my desk. Hopefully, we can pass on some of this knowledge to our readers.
Q: Would current law support a different bill of lading form layout than described in the National Motor Freight Classification? This Bill of Lading (BOL) will have the same information with an area for Bar Coding and a supplemental page or continuation page. Also could you describe the Voluntary Interindustry Commerce Standards (VICS) bill of lading.
A: At one time, back in the good old days of trucking, most motor carriers were participants in the National Motor Freight Classification and thus were required to use the Uniform Straight Bill of Lading published in the NMFC. With deregulation, the abolition of the “filed rate doctrine”, and the elimination of the ICC, there really is no law or regulation that mandates any particular form of the bill of lading. Today, many shippers have adopted their own forms, and there are many different versions of the “bill of lading” in current use. Carriers generally favor use of the Uniform Straight Bill of Lading as set forth in the NMFC. However, the NMFC bill of lading contains “incorporation by reference” language that makes the Classification and the carrier’s (unfiled) tariffs part of the contract of carriage. These tariffs usually contain liability limitations, accessorial charges, late payment penalties and other rules that are unfavorable to the shipper. Beware of one shipper-friendly bill of lading is the :Shipper’s Domestic Truck Bill of Lading” which was developed by the Transportation Consumer Protection Council. This is available in a “kit” from the Council, which includes an explanatory booklet, and a form that can be modified or tailored to the needs of the shipper. The VICS bill of lading has been adopted by some of the large retailers and is principally intended to establish a uniform format and to facilitate EDI transmittal of the BOL data. However, the authors of this BOL adopted what they call the “legal statements” from the Uniform Straight Bill of Lading in the National Motor Freight Classification. Thus the VICS BOL incorporates the NMFC and the carrier’s (unfiled) tariffs – an is favorable to the motor carier. Obviously, if all of your shipments move under a properly drafted transportation contract, the form and language of the bill of lading is not critical, because the contract provisions will prevail. On the other hand, there may be situations where some shipments are not covered by your contract, so the VICS BOL language would govern.
Q: We are a small common and contract motor carrier. We do not participate in the NMFC. We have published tariffs but most of the shipments we are talking about are LTL loads received via brokers. The tariffs we have published are not sent to the brokers or shippers. We use the quotes to settle on a price. Our drivers pick up back haul-loads, we have them put a sticker on the shippers paperwork (BOL). The sticker reads: “Receipt subject to inspection, correction, and tariffs or note agreements, Driver is not authorized to waive rules or adjust charges.” We are additional sending a quote to the broker/shipper that states $2.50/lb. limit of liability, detention information, shipper, consignor, rate information and wording” subject to terms and conditions of the Uniform Straight Bill of Lading on file in carriers office.” My question is, If the shipper’s BOL has terms that we do not agree with are we bound by any of the rules? Since we formally did not issue a BOL can we enforce the $2.50 / lb. limit of liability? If we do issue a BOL and the shipper will not sign it or accept it, what is the governing contract or document?
A: The question of “which bill of lading governs” is a controversial subject. Shippers generally don’t want to use a carrier bill of lading or the Uniform Straight Bill of Lading from the National Motor Freight Classification because it incorporates provisions of carrier’s unfiled tariffs which usually contain liability limitations, accessorial charges, late payment penalties, etc. Unless the shipper demands ( and the carrier provides) a complete copy of its tariffs, the shipper has no way to determine what is in the tariffs and the carrier can unilaterally modify its tariffs without any obligation to notify the shipper. Conversely, most carriers want to use a bill f lading that incorporates their tariff rates, rules, terms and conditions, etc. and don’t want their drivers to accept shipper versions. A bill of lading can be merely a receipt for the goods, or it can be a contract – IF it contains contractual language governing the obligations of the parties. Regardless of who prepares the bill of lading, if it has the typical language from the Uniform Straight Bill of Lading, the carrier’s tariffs are usually “incorporated by reference” and would be binding on both parties. If the shipper prepares a bill of lading and it does not incorporate any tariffs, and the carrier accepts the shipment, I would say that the carrier cannot rely on its tariff provisions. And, I do not think that any stickers or subsequent notations placed on the bill of lading “ after the fact” would be enforceable. If the carrier gives a written rate quotation which contains all of the important terms and conditions, and the shipper accepts and signs the quotation, it should be an enforceable contract (regardless of what the bill of lading form is used.). Note that the provisions of the Interstate Commerce Act, such as the “Carmack Amendment”, time limits and statues of limitations would still govern the transportation unless the contract contains an express waiver. My suggestion would be to use a formal transportation contract whenever possible. You may want to have different contracts when dealing with a shipper vs a broker. A properly drafted contract is the best way to avoid problems and disputes. If you really want to put the icing on your cake then print your own Uniform Straight Bill of Lading with your company name on it and give them away free to your customers to save them the printing costs.
The NTA is a nationwide association established to provide services, benefits and information to Private Fleets, Trucking Companies and Owner-Operators. We provide our members with more FREE services and benefits than any other association. For more information or details call (562) 279-0557 in California or 800 805-0040 or you can E-Mail me at wayne@ntassoc.com Remember, tell those who doubt your profession, " If you've got it ….A TRUCKER BROUGHT IT ! Until next month, " Drive Safely - Drive Smart ! "
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