Page 25 - ATR 5 2014 web

Cargo loss

A new and dangerous wrinkle in a century-old problem

by greg Jones

Guest Writer

Cargo loss is a dirty word to any
carrier, and the legal language that
should protect carriers and shippers
when the worst happens to very expen-
sive commodities can get complicated
quickly, especially on interstate loads.
A 1906 federal statute known as the
Carmack Amendment to the Interstate
Commerce Act, has answered liability
questions for over a century. However,
recent cases may possibly serve as a
dangerous new precedent for claims
filed by brokers.
The carrier risk is suddenly much
higher. Consider what you would do
if your liability for one lost load grew
from thousands to millions.
So business is a little slow. When
a broker calls to offer twenty lucrative
loads, your salesman thinks, “We’ve got
the capacity, and we need the business.”
The broker forwards a master services
agreement, the initial contract that
spells out most of the terms between
parties. Your salesman alertly spots
one key clause requiring you as the car-
rier to procure $100,000 per load in
insurance coverage. That’s nothing new
to your salesman, who has an insur-
ance agent in the wings ready to bind consignee, but had already driven eight that it contains the normal language
the coverage with a quick phone call. hours without a break. He tells your and shipper agreement that all the
Paperwork is signed, bills of lading are dispatcher, “For the past year, you guys terms and conditions of the Uniform
issued, and your drivers make the first had drilled into my brain the need to Domestic Straight Bill of Lading con-
deliveries. The money starts rolling in. take that new 30-minute break, so I trol. Someone even remembered to
stopped for a bite. And when I came insert a released value for the shipment,
loSing Cargo out, the load had been jacked.” which is well under the $100,000.00
But then the phone call comes in Your loss prevention folks spring insurance coverage.
to dispatch from one of your drivers. into action. They ask to see the bill of Everyone relaxes until somebody
He was in unfamiliar territory. He had lading for the load that had been stolen.
just 50 more miles to go to get to the Sure enough, they find it and confirm  33

aRkansas tRuCking RepoRt | issue 5 2014 25