| TRUCKING
101: BACK TO THE BASICS.
THIS MONTH, MORE ABOUT...
COMPLEX ISSUES REGARDING
BILLS OF LADING
By Wayne
Schooling
Q:
Is it illegal for a shipper to falsify the weight on a bill of lading?
A:
Yes, especially if it is done “knowingly or with intent to defraud.”
The statutory provision is found in the Bills of Lading Act, 49 U.S.C.
Section 80116, which applies to bills of lading in interstate commerce
and stipulates that a person shall be fined under Title 18, imprisoned
for not more than 5 years, or both, if the person... knowingly or
with intent to defraud, A) falsely makes, alters, or copies a bill
of lading subject to this chapter; B) utters, publishes, or issues
a falsely made or copied bill subject to this chapter; or C) negotiates
or transfers for value a bill containing a false statement.
Q: Company A has an arrangement
with Company B. The product is partially made at Company A then moved
to Company B, where the product is finished. When Company A sells
the finished product to a customer, the product is shipped from Company
B’s warehouse to the customer using Company A’s bill of lading. What
company needs to show on the BOL as the shipper?
A: I would assume from the
arrangements you describe that Company A is the actual owner of the
goods which are being shipped, and Company B is essentially acting
as its agent, as far as shipping to the customer. Under such circumstances,
I think it would be proper to show Company A as the shipper on the
bill of lading, using Company B’s address for shipping purpose only.
Thus, Company A would be responsible for payment of the freight charges,
and would be the proper party to file a claim in the event of loss
or damage to the goods.
Q: On the bill of lading, is
it legally essential to disclose the NMFC classification based on,
1) number of containers; 2) part numbers that apply; 3) weight; 4)
all three; or 5) some other combination? We are trying to streamline
our Bills of Lading for a new system we are implementing and any advice
that you might pass along on the current requirements would be a big
help.
A: If you are shipping with
a motor carrier that is a participant in the National Motor Freight
Classification, and you do not have a transportation contract, it
would be the usual practice to use the Uniform Straight Bill of Lading.
The Uniform Straight Bill of Lading has spaces for setting forth the
number of packages, the description of the goods, the weight and the
NMFC class. The rate base, the weight and the class usually determine
freight charges. Part numbers, purchase order numbers, etc. are often
included in the description column on the bill of lading if useful
to the shipper or the consignee, but they do not affect the freight
charges. The NMFC classification is determined by reference to the
article in the classification, and by determining what is the article
which most closely describes the commodity being shipped (this can
be hard to determine because the classification reference book is
four inches thick and has thousands of options to choose from).
Q:
When sealing a trailer up for shipping, should the seal numbers be
recorded on the bill of lading?
A: If you do not note the
seal number on the bill of lading, how is the consignee to know whether
the seal on the trailer he receives is the real seal that was placed
on the truck at the time of shipment? Let me put it another way -
if you did not record the seal then someone with a little smarts could
break the original seal, help himself to whatever he desired, then
put a new seal on the trailer. It is only logical to record the shipper’s
seal number on the bill of lading. This notifies the consignee that
the trailer or container was sealed at origin, and implies that the
seal should be inspected and the number checked upon delivery.
Q: We are a small company.
When we ship with a broker, should their name be on the bill of lading
or the carriers? Also, if we put the language from the Shipper’s Domestic
Truck Bill of Lading, “Carrier designates broker...” on our bill of
lading, is this a legal agreement between the shipper and the carrier
if both sign the BOL?
A: There is no problem with putting
the broker’s name on the bill of lading, so long as you don’t show
it as the CARRIER. If you do put the broker’s name on the bill of
lading, qualify it with the word “broker” to indicate the proper capacity.
While there are many variations of the bill of lading today, technically,
only carriers that are participants in the NMFC are required or permitted
to use the Uniform Straight Bill of Lading. Utilizing the language
“Carrier designates broker...” can help avoid problems, but absent
a prior agreement with the carrier, there is no guarantee that the
carrier will honor such language based upon the signature of a driver.
~ We at 10-4 Magazine would like to wish Wayne Schooling a Happy Anniversary.
It was 10 years ago this month that we published his first column.
Over the years, Wayne has become quite famous (or infamous) for being
the author of Wayne's World. At the shows, people are always telling
us how much they enjoy reading his column and how much they have learned
from it. So keep up the good work Wayne. Here’s to ten more great
years! Give Wayne a call today at (562) 279-0557 and wish him a Happy
Anniversary. Until next month, “Drive Safe - Drive Smart!”
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