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 writing," 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 with 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 writing. "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."