LOSS & DAMAGE LIABILITY

The ICC Termination Act contains one provision that traffic managers
should ignore only at their peril. The law allows motor carriers to
limit liability, but requires them to notifiy a customer only when
asked. "Shippers today have got to negotiate up front with every
carrier and get it in writting," advises William Augello esq., and
founding director of the transportation and Logistics Council (TLC).
"Use your own bill of lading to avoid being bounced around by
carriers w/unfiled pricing sheets, schedules and tariffs incorporated
by reference." The bill of lading should include language specifying
that the shipper is bound only to what he agrees to in writting.
"Shippers must request a copy of whatever they agree to with the
carriers," advises Augello. "There can be no more saying that a
contract is subject to a classification or rules tariff. Make the
request in writing. If the carrier doesn't provide the
documents,then it won't be able to enforce them."
Carriers say the ICC Termination Act restores the rights of carriers
to limit liability simply by placing a clause to that effect in their tarrifs.
However the new law does say that any limits on liability must be
"reasonable," which should prevent carriers from charging excessively
high premiums for assuming full-value liability. Augello says,
"Companies are simply not doing the due diligence required to
manage their logistics operations properly. There is a greater need
than ever to have people on staff educated in the legal aspects of
transportation and logistics.”