A century of change--but what's next?

By William J. Augello Esq. -- Logistics Management, 1/1/2000

This time of year usually is a time for reflection on events of the past 12 months. This year, though, many people will be reviewing the events of the past century, which have brought monumental changes to transportation and logistics. Beginning with the development of long-haul trucks, we have been through the advent of containerization, double-stack trains, RoadRailers, computers, satellite tracking, electronic data interchange (EDI), document scanners, undercharge litigation, and deregulation, to name just a few of the century's important developments.

"Been there, done that"--but now our focus should be on what's next. What changes would you like to see take place in the year 2000? We'd like to know. Let us hear your suggestions for solving problems in transportation and logistics, and perhaps you can play a role in improving the system for the next century.

Here are a few topics to ponder, but don't restrict your comments to these subjects:

- Returning to the practice of not charging for the weight of pallets and dunnage.

- Requiring all carriers to notify their customers of the terms of carriage and potential charges before shipping.

- Developing an electronic system for drivers to take instant photographs of damaged freight and relay those photos directly to the shipper for disposition instructions.

- Developing an electronic system whereby a shipper can--with one entry--arrange for the entire logistics function. This could include selecting the carrier, executing the contract of carriage, displaying a summary of all liability limitations, assessing accessorial charges and penalties, arranging for appropriate insurance, notifying the consignee, auditing the billing, obtaining proof of delivery, paying the freight charges, filing and transmitting payment of claims, and storing the transaction.

- Requiring all carriers that offer a guaranteed delivery date to refund the freight charges as promised automatically, without unreasonable terms and conditions that make the service guarantee a sham.

- Requiring court decisions to be written in plain English.

- Re-instituting the old Commerce Court with judges and clerks schooled in transportation.

- Instituting an accreditation system for transportation and logistics personnel at all levels.

- Establishing a uniform penalty of 1.5 percent per month on penalty charges assessed by carriers when shippers' payment of freight charges exceeds 30 days, in lieu of the current trend toward loss-of-discount penalties.

- Establishing a uniform rate of interest to apply on carriers' claim payments that are made beyond an agreed time limit, such as 60 to 90 days, unless the claimant agrees to extend that time.

- Doubling the current cargo insurance amount required for motor carriers under the BMC 32 Endorsement.

- Increasing the $100-per-package and 50-cents-per-pound package-liability limits on express and airline shipments.

Submit your suggestions to me via e-mail at williamaugello@worldnet.att.net, and we'll send you one of the 15 publications published by the Transportation Consumer Protection Council (TCPC) concerning transportation laws and regulations, tariffs, freight claims, contracts, and procedural manuals. Include your name, address, and e-mail address, and we'll send you a catalog of all of the TCPC's publications.

William J. Augello Esq. has practiced transportation law for 47 years. He also is the executive director of the Transportation Consumer Protection Council, an organization that is devoted to protecting shippers and receivers in transportation matters, such as freight loss and damage, undercharges, and contracts. He can be reached at (520) 531-0203 or via e-mail at williamaugello@worldnet.att.net.