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INSTRUCTIONS ON BILLS OF LADING Q: We have a “Customer/Carrier Loading Requirements Policy” that requires drivers to count on live loads. It also states: “Drivers who sign Bills of Lading should not attempt to write in “SLSC” (Shipper Load Shipper Count) when signing their bills. Our bills clearly read “SLDC” (Shipper Load Driver Count) and any attempts to change this by writing on the Bill of Lading will be nullified.” However, drivers have written in “SLC” (Shipper Load Count) on live loaded trailers and carriers are refusing to pay claims for discrepancies. We are currently reprinting the B/L’s and having the drivers sign them again without writing in “SLC” next to their signature. Our B/L’s are clearly marked “SLDC” and should leave no room for doubt. What recourse do we have with those claims where the driver has signed a live loaded trailer as “SLC”, but the B/L is clearly marked “SLDC”? The drivers have had access to the trailer, but the carriers are refusing to accept responsibility for delivery discrepancies. I am rather new at this and thought the “Customer/Carrier Loading Requirement” would help resolve claims for shortages, but it’s almost like some carriers act like they don’t know what we are talking about. Any help you could give me in this area would be greatly appreciated - John K., Kansas City, Missouri. A: Whether a shipment is actually “SL&C” (the proper notation is Shipper Load & Count) is basically a simple factual question. If the driver is present at the time of loading and has an opportunity to count the cartons at that time, a “SL&C” notation has no legal effect. It is quite understandable that carriers would not want to accept responsibility for a particular count if their driver does not have reasonable access and an opportunity to verify the count during the actual loading by the shipper. If the goods are palletized or shrink-wrapped before the driver arrives and the individual cartons are not visible or cannot be counted, the carrier cannot be expected to sign for a carton count. In this case, the proper notation would be, “X number of pallets said to contain X number of cartons (ctns)”. Preprinting your Bills of Lading “SLDC” (Shipper’s Load, Driver’s Count) is probably a good procedure and should help to minimize your problems. However, the most important thing is to request the driver to actually count the cartons as they are being loaded, and have your shipping supervisor make a notation or record of the fact so there can be no question later. I would also note that we at NTA always recommend that our clients enter into written transportation agreements with their carriers. Liability provisions covering this kind of problem can be included in a properly drafted contract so they become binding and enforceable. Q: What is the carrier’s liability under the following circumstances: 1) Shipper issues a B/L to carrier for orders going to various customer stores. On the B/L is the following instruction: “Special Instruction to Carrier: Ensure that customer receiving freight places a store stamp on your delivery receipt. Do Not Deliver Without Store Stamp.” And, 2) Carrier picks up shipment and puts the following notation on their freight bill, “Customer store stamp must be on DR.” The customer now claims they never received the order and is requesting a POD with the store's stamp, which the carrier cannot provide. We filed a claim with the carrier and they declined stating: “Our investigation of the above referenced claim revealed that this shipment was delivered without exception. We are enclosing a copy of our Clear Delivery Receipt. Carrier provided a DR with a signature but with no store stamp.” We have some 27 shipments for over $46,000 worth of invoices that fall into this category. Let me know your thoughts - Joseph M., Yonkers, New York. A: I am not sure whether your real problem is with the carrier or with your customer. The first and most obvious question is: Were the goods delivered or not? Have you checked with your customer to see if the signatures on the delivery receipts are genuine? The lack of a store stamp on the delivery receipt is not conclusive one way or another. In other words, do some sleuthing and see if you can find out what really happened. If the person who signed for the shipment is still working there and just forgot to put the store stamp on the DR, it would stand up in a court of law. Your observation about notations on the B/L is substantially correct. Notations are not generally binding unless there is some tariff or contract provision allowing or requiring a specific notation such as “protective service required”, etc. On the other hand, notations do give the carrier information, and the carrier was obviously aware of the requirement to obtain a store stamp because it carried the notation forward on its freight bills. It seems that, under these circumstances, you could argue that the carrier accepted this requirement as part of the contract of carriage. The best way to avoid this type of problem is to enter into a written transportation agreement with your carriers and customers, and include specific provisions in the contract as to any special requirements. Then, there can be no dispute. ~ Do you have a specific issue
that you would like me to address? If so, please send your questions
to Wayne Schooling at NorthAmerican Transportation Association, 2533
N. Carson St, Suite 346, Carson City, NV 89706-0147. I will answer
as many as I can, and some I will use in this column to help educate
other readers out there. |