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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: Let’s say your loaded trip miles was the total shortest distance traveled –857 miles, and the company only states that they will pay for that trip 823 miles. That’s 34 miles unaccounted for. My question is, “Can a trucking company shave off your mileage when completing a loaded trip? Can they really pay you for what they say it is? Do I have the right to request all mileage due me?” If they do not have the right to illegally take that remaining mileage what can I do as an owner-operator to prevent this from happening again? Please help me with this problem…Monique K, San Diego, CA
A: The carrier has to justify how they determined the mileage. Many times they will rely on the Movers & Warehousemen’s Mileage Guide which, may I add that many truckers have complained about for years, is in the range of 10% or more under stated. It sounds like this happened to you. Now to add insult to injury, I don’t know of any state that uses that mileage guide to determine mileage for fuel tax or apportioned licensing audits so you are taxed on something closer to the actual mileage. To give you a little background, the Movers and Warehousemen’s Moving Guide got started many, many years ago (long before computers) as a tariff published by the Household Goods Carrier’s Bureau and approved by the Interstate Commerce Commission. Drivers complained about it then too. Mover’s rates were very high at the time and were regulated so there was very little incentive to challenge the mileage guide. During that time frame, people in the moving business were making very good money. A few years ago, the Movers and Warehousemen’s Association acquired the Household Goods Carrier’s Bureau but made no meaningful changes to the mileage guide. Many carriers/brokers still like it because they can use it to rip off the owner operators and justify it through some semblance of creditability because of the long history of the guide’s use. So before you sign that contract always be sure you ask the carrier/broker how they determine mileage.
Q: Can a shipment still be considered a true “shipper load & count” if the carrier has broken the shipper’s seal to verify carton count? Does a “shipper load & count” shipment lose its integrity if the shipment is processed through a consolidation hub where the shipment is removed from the original trailer and reloaded before delivery? Can the carrier be held liable for a shortage if one occurs? Where can we find more information on “shipper, load & count” regulations? Jake H, Kansas City.
A: A “Shipper Load & Count” notation on a bill of lading means exactly that: the shipper loads and counts, usually a full trailer load, and sealed upon completion of loading. So long as the trailer remains closed and the seal intact, there is a presumption that any shortage found upon delivery did not occur in transit. If the carrier opens the trailer at an intermediate point for consolidation or transfer to another truck, it should count the contents and report any discrepancy. Unless a shortage is noted at this point, the carrier is no longer entitled to any presumption arising out of the original “ Shipper Load & Count” notation on the bill of lading. You can learn more in greater detail from the book “ Freight Claims in Plain English” in Sections 4.8.3 and 5.2.2.
Q: I have been asked if our plants need to have their shipping clerk’s original signature on the bill of lading. They would like to have it replaced with a system generated printed name. Does the lack of a signature limit our legal recourse if we were to end up in some sort of transportation related litigation. William B, Dallas, TX
A: There is no legal requirement for a shipper to sign the bill of lading. On the other hand, it is imperative that the carrier’s drivers sign the bill of lading to confirm that the carrier has received the goods, and that they were in good order and condition when received by the carrier.
Q: My questions are in regard to putting the piece count on the bills of lading. Many of our locations feel that there is no need to do this. Diane K, Oakland, CA
A: It is always a good practice to show the number of packages or cartons on the bill of lading and to have the driver acknowledge receipt by signing for the actual count. The bill of lading is a legal document. Unless you have some other formal transportation agreement, the bill of lading will be considered the “contract of carriage” and will determine the rights and liabilities of the parties in the event of loss, damage or delay to shipments. I suppose you could ship on a document such as a “packing slip”, but you would still want some language indicating that the goods were received in good order and condition by the carrier, and a signature of the driver. Next month, I will turn 20 with 40 years of experience, and my birthday gift to you is that I will share with you the biggest little secret of the bill of lading that could save you tens of thousands of dollars. So be sure not to miss the September issue.
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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