Gaining power through knowledge
By William J. Augello -- Logistics Management, 2/1/2001
If the number and types of questions submitted to this writer are any indication of the level of knowledge among people who have corporate responsibilities for transportation and logistics today, then the transportation community is in need of a "booster shot" of education!
The adverse effects of downsizing and outsourcing are beginning to show. There are fewer people today who have a sound background in transportation; know all of the freight-claims rules and regulations; understand all of the terminology; are alert for the "pitfalls" in the distribution cycle; and can fully comprehend tariffs, bills of lading, and insurance policies.
Here is a sampling of questions that are frequently raised by the work force that has inherited the logistics function in American business:
What determines which party has "risk of loss" in transit?
Who should file a loss-and-damage claim for an "FOB Origin" shipment? For an "FOB Destination" shipment?
Can a carrier be held liable if a shipment is made under "shipper's load and count" and the seal is intact at the time of delivery?
May a consignee refuse a damaged shipment?
Can expenses for inspecting, sorting, segregating, repackaging, or repairing cargo be included in a loss-and-damage claim?
When a shipment is lost or destroyed in transit by the carrier and another is sent as a replacement, can the shipper recover the shipment's invoice value or only the replacement cost (manufactured cost)?
What are the time limits for filing a loss-and-damage claim against a motor carrier? A domestic freight forwarder? A railroad? An airfreight forwarder or air carrier? An NVOCC (ocean consolidator) or ocean carrier?
How do you collect on a loss-and-damage claim when the carrier goes out of business or files for bankruptcy?
What is a BMC-32 endorsement?
When is a broker or an intermodal marketing company responsible for loss or damage to a shipment?
What is the National Motor Freight Classification (NMFC)?
What are "Incoterms 2000"?
What is the difference between an ocean freight forwarder and a "non-vessel operating common carrier" (NVOCC)?
Can a shipper be liable for damage or personal injury caused by improper loading, blocking, or bracing?
What are the time limits for filing overcharge claims? For carriers to collect unpaid freight charges?
When are motor carriers required to provide shippers with copies of their tariffs?
Can a carrier collect from the shipper or the consignee if the broker that arranged the movement goes out of business or fails to pay the carrier?
Is the shipper responsible for freight charges on a "collect" shipment if the consignee doesn't pay? Is the consignee liable on a "prepaid" shipment if the shipper doesn't pay?
Can a carrier hold freight "hostage" because there are outstanding freight charges?
One place shippers and consignees can seek answers to these and other transportation and logistics questions is the Transportation Consumer Protection Council Inc. (TCPC). The non-profit TCPC has a telephone "hotline" for such questions - (631) 549-8984 - as well as a transportation Q & A feature on its Web site (www.TCPCinc.org). The council also has published a collection of some 150 frequently asked questions and their answers in book form; "Q & A in Plain English" may be purchased through TCPC's Web site, by phone, or by mail. Recent Q & As also are published in TCPC's monthly newsletter, TransDigest, and are posted on the council's Web site. These exchanges are particularly valuable because they address the problems people are experiencing daily in the current business environment.
William J. Augello is an adjunct professor at the University of Arizona in Tucson and also serves as executive director of the Transportation Consumer Protection Council Inc. (TCPC). He may be reached in Tucson at (520) 531-0203, at TCPC's headquarters in Huntington, N.Y., at (631) 549-8984, or via e-mail at williamaugello@worldnet.att.net .
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