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In this series, we are going to try to answer some of the questions that I come across my desk. Hopefully, we can pass on some of this knowledge to our readers.
Q: Since an "Order Bill of Lading" is negotiable does this mean that the "title" to the goods passes to the consignee when the bill is signed and freight is picked up at the shippers warehouse? Does this type of B/L legally have anything to do with title to the goods and if so at what point is it passed to the consignee? Mike B… Holland, MI.
A: When an Order Bill of Lading is used, the original itself is evidence of title or the right to possession. Order bills can be transferred from one party to another, similar to a check. Order Bills of Lading are frequently used in international commerce as security for payment for the goods. The reason is that, with an order bill of lading, the carrier may not lawfully deliver the goods unless the original order bill of lading is presented. In a typical international transaction, the original order bill of lading is sent to an agent or a bank at destination and is released to the consignee only upon payment for the goods. The consignee then takes the original bill of lading, endorses it and presents it to the carrier, and receives the goods.
Q: What is the definition of a licensed property broker, and how does one become licensed?.…Carl H, Hickory, NC.
A: The definition of a "broker" is found in the FMCSA regulations at 49 CFR Sec 371, and provides: (a) "Broker means a person who, for compensation, arranges, or offers to arrange, the transportation of property by an authorized motor carrier. Motor carriers, or persons who are employees or bona fide agents of carriers, are not brokers within the meaning of this section when they arrange or offer to arrange the transportation of shipments which they are authorized to transport and which they accepted and legally bound themselves to transport." And c) Brokerage or broker service is the arranging of transportation or the physical movement of a motor vehicle or of property. It can be performed on behalf of a motor carrier, consignor, or consignee. But in today market, beware of the broker! Just today in writing this article I have received two calls from truckers who have been cheated by unscrupulous brokers. The first call came from a small company who had over $10,000 in unpaid freight charges. It seems the so-called logistics company in Utah had scammed many a trucker. When it got to hot for them, they simple closed down and started up down the street under a new name. The other called came from a friend of mine in Arizona. He also had about $10,000 in unpaid freight charges. This company is having financial problems. So before you haul that load or commit yourself - check that broker out. There are three very good broker credit companies; Red Book, RTS and CompuNet. Do yourself a favor and deal only with reputable brokers and you will not have as many problems.
Q: Our company is a licensed transportation broker. We were arranging transportation for a shipper to ship a perishable product from NC to NJ. The original truck we had scheduled for the load was put out of service by the DOT, at that time we immediately notified the shipper that we would miss the pickup and would continue to look for a truck, but he should look as well. Through the next day ½ we searched for a truck, still in communication with the shipper, and finally found one. During that day ½ period we spoke with the shipper several times, so he was well aware of the problem. When the shipment got to NJ the next day it had spoiled, as a result of sitting in the shipper cooler. The shipper is filing a claim with us because we did not pick it up on time. As the shipper was well aware of the problem and also had plenty of time to arrange other transportation, what is our liability?
A: As a general rule, a broker is not liable for loss or damage to shipments, since it does not physically handle or transport the goods and merely makes the arrangements for the transportation. However, a broker may have liability if it is negligent in some way, for example, if the broker selects a "fly by night" carrier that has no operating authority or insurance, or an unsatisfactory safety rating from the FMCSA. Unless you had given the shipper some affirmative representation or guarantee that the shipment would be picked up and delivered according to a particular schedule, and from the facts you have described, I don'' see how the shipper could establish that your company was liable for its loss. Send your questions to Wayne Schooling at NorthAmerican Transportation Association, 2533 N Carson St, Suite 346, Carson City, NV 89706-0147
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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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