Customized bills of lading are still permitted

By Ray Bohman -- Logistics Management, 9/1/1998

Although there now are only two standard bill of lading (B/L) forms left in the National Motor Freight Classification (NMFC)-- the Uniform Bill of Lading - Original - Not Negotiable and the Straight Bill of Lading - Short Form - Not Negotiable--NMFC Rules (Item 360-B, NOTE 2) still allow shippers to print and use their own customized bills of lading when they ship freight via carriers that are party to the classification.

Those provisions require such B/Ls to be titled "Shipper Provided Short Form Bill of Lading - Not Negotiable." In addition, such bills of lading must list the following minimum information in the following order of appearance:

* Carrier's name and address

* Carrier's Pro number

* Shipper's bill of lading number

* Consignee's reference/PO number

* Consignee destination and address

* Shipper origin and address

* Statement of conditions or restrictions placed on shipment (where appropriate), including:

- released-value information

- number of pieces

- kinds of packages

- commodity description

- weight

- hazardous material designated as required, including the furnishing of placards to the carrier

- COD where appropriate, including amount to be collected and the party to pay the COD

- freight terms (collect or prepaid).

The document must be concluded with a date and the notation "Received in apparent good order - Exceptions Noted," which shall be deemed to be an acceptance of all terms and conditions provided in the Uniform Freight Bill of Lading.

Many, many shippers around the country have developed and used customized bills of lading for years and, I believe, will continue to do so, although they now may include some of the new provisions found in the two standard revised NMFC bills of lading rather than have their own provisions conflict with some of the new ones. (Examples include the new prepaid vs. collect provisions and the new Section 7 provisions that limit the use of the non-recourse clause to freight collect shipments.)

In the process of revising your old customized bill of lading, should you elect to do so, you might want to consider taking out a licensing agreement with the National Motor Freight Traffic Association (NMFTA). Full details on such agreements--which cost you nothing--were set forth in my column in the August 1998 issue of Logistics.

Finally, bear in mind that these two newly revised bills of lading in the NMFC are applicable only via carriers that are party to the classification--some 2,000 in number. There are thousands of carriers that are not party to the NMFC, including most truckload carriers, and thus have made no changes in their rules governing bills of lading, or standard forms, if they have any. They continue to accept the same B/Ls shippers have been tendering for years.

Ray Bohman is a well-known consultant and author. Mr. Bohman is editor of several highly successful newsletters on transportation and is a consultant to a number of national trade associations. He is president of The Bohman Group, consultants and publishers in the freight-transportation field. His offices are located at 27 Bay Lane, Chatham, MA 02633. Phone: (508) 945-2272.