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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: Is it illegal for a shipper to falsify the weight on a bill of lading?
A: Yes, if it is done “knowingly or with intent to defraud.” The statutory provision is found in the Bills of Lading Act, 49 U.S.C. Section 80116, which applies to bills of lading in interstate commerce and provides: § 80116. Criminal penalty. A person shall be fined under Title 18, imprisoned for not more than 5 years, or both, if the person..knowingly or with intent to defraud A) falsely makes, alters, o copies a bill of lading subject to this chapter; B) utters, publishes, or issues a falsely made, or copied bill subject to this chapter, or C negotiates or transfers for value a bill containing a false statement.
Q: Company A has an arrangement with Company B. The product is partially made at Company A then moved to Company B where the product is finished. When Company A sells the made product to a customer the product is shipped from Company B’s warehouse to a customer using Company A’s bill of lading. What company needs to show on the BOL as the shipper?
A: I would assume from the arrangements you describe that Company A is the actual owner of the goods which are being shipped, and Company B is essentially acting as its agent as far as shipping to the customer. Under such circumstances, I think it would be proper to show Company A as the shipper on the bill of lading using Company B’s address for shipping purpose only. Thus, Company A would be responsible for payment of the freight charges, and would be the proper party to file a claim in the event of loss or damage to the goods, etc.
Q: On the bill of lading, is it legally essential to disclose the NMFC classification based on 1) number of containers, 2) part numbers that apply, 3) weight, 4) all three, or 5) some combination? We are trying to streamline our Bills of Lading for a new system we are implementing and any advice that you might pass along on the current requirements of the Bill of Lading would be a big help.
A: If you are shipping with a motor carrier that is a participant in the National Motor Freight Classification, and you do not have a transportation contract, it would be the usual practice to use the Uniform Straight Bill of Lading. The Uniform Straight Bill of Lading has spaces for setting forth the number of packages, the description of the goods, the weight and the NMFC class. The rate base, the weight and the class usually determine freight charges Part numbers, purchase order numbers, etc are often included in the description column on the bill of lading if useful to the shipper or the consignee, but they do not affect the freight charges. The NMFC class is determined by reference to the Article in the Classification, and determining what is the Article which most closely describes the commodity being shipped.
Q: When sealing a trailer up for shipping, should seal numbers be recorded on the bill of lading?
A: If you do not note the seal number on the bill of lading, how is the consignee to know whether the seal on the trailer he receives is the real seal that was placed on the truck at the time of shipment. Let me put it another way, if you did not record the seal then someone with a little smarts could break the original seal, help himself to whatever he desired, then put a new seal on the trailer. It is only logical to record the shipper’s seal number on the bill of lading. This notifies the consignee that the trailer or container was sealed at origin, and implies that the seal should be inspected and the number checked upon delivery.
Q: We are a small company and when we ship with a broker, should their name be on the bill of lading or the carriers? Also, if we put the language from the Shipper’s Domestic Truck Bill of Lading, “Carrier designates broker”.. on our bill of lading, is this a legal agreement between the shipper and the carrier if both sign the bill of lading?
A: There is no problem with putting the broker’s name on the bill of lading; so long as you don’t show it as the CARRIER. If you do put the broker’s name on the bill of lading, qualify it with the word ”broker” to indicate the proper capacity. While there are many variations of the bill of lading today, technically only carriers that are participants in the NMFC are required or permitted to use the Uniform Straight Bill of Lading. Utilizing the language “carrier designates broker…” can help avoid problems, but absent a prior agreement with the carrier, there is no guarantee that the carrier will honor such language based upon the signature of a driver.
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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