What lies ahead for logistics professionals?

By William J. Augello -- Logistics Management, 1/1/2001

The year 2001 promises to be an interesting one for transportation and logistics professionals, offering opportunities for reshaping transportation laws and regulations for the betterment of the shipping community as well as for professional advancement.

In this writer's view, here's what lies ahead:

• The nation's importers and exporters will finally conclude their 20-year struggle to revise the ancient law governing ocean carriers' liability for loss, damage, and delay. Five years ago, the Maritime Law Association was able to get U.S. shipping interests to reach an accord on modernizing the Carriage of Goods by Sea Act (COGSA), only to see progress on a revision delayed by inland waterways interests and foreign vessel operators. With luck, Congress will not condone intervention by foreign interests in the revision of laws that have a direct impact on American cargo owners.

• Shippers will be able to hold carriers liable for employing unfair or deceptive practices in the processing of claims resulting from loss, damage,or delays, if Sen. John F. Kerry (D-Mass.) and Rep. Zoe Lofgren (D-Calif.) have their way. Currently, the federal Carmack Amendment pre-empts state consumer-protection laws; courts, therefore, have consistently limited claimants' awards to the liability limits included in the carriers' tariffs or bills of lading - even when there is clear evidence of deliberate, evasive, and deceptive claims practices. The proposed Kerry-Lofgren legislation would rectify that, but it needs to be broadened to cover all types of deceptive practices, such as those involving rates, bills of lading, contracts, and inaccurate advertisements regarding money-back guarantees.

• A major Surface Transportation Board (STB) revision of antitrust immunity for motor carrier rate bureaus and the classification system may be coming soon. If the STB prevails, shippers may see a return to realistic, market-driven base rates. A drastic revision of the motor freight classification system that would make it more "shipper-friendly" is also a possibility.

• More litigation looms over whether a motor carrier must obtain a shipper's written consent before it may limit its liability in unfiled tariffs. This issue is a serious problem for shippers who do not request a copy of the carrier's tariff before shipping.

• Busy logistics professionals will earn college credits for transportation and logistical courses at their leisure, without traveling or spending time away from home.One way is through the Institute of Logistical Management (ILM), where students can earn college credits by taking the institute's "Distance Learning" courses.(Students can also earn recognition as a "Certified Logistics Practitioner" through ILM.) In addition to ILM's own logistics courses, registrants for the first time will be able to take this writer's new two-credit course, "Laws Governing Transportation and Logistics," which also is being offered through the University of Arizona. ILM registrants will receive a text, weekly lessons and quizzes, and a final exam. Also available to ILM students will be the Transportation Consumer Protection Council's course "FreightClaims - Filing and Recovery," by John Harvey, the text for which has been updated by this writer to reflect the latest developments in carrier liability.