Essential Practices for High Dollar Loads
Somerset has
written about conducting due diligence to protect against claims and to ensure
our carrier partners perform to standard.
These practices should be intensified when moving an expensive or high
dollar shipment. Recently, Somerset had
a problem or challenged shipment which is a great example of why these
practices are so important. Several
simple procedures or practices can help protect customers, yourself, and the
company from claims and the potential loss of money.
Somerset's
customer requested to have a high dollar piece of machinery (over $100K) moved
across the country. The load was sold as
a partial since it only used a portion of the trailer deck space. The machinery was palletized, shrink wrapped
and loaded by the customer. The load fit
easily in the well of a double drop trailer, and was secured and tarped prior
to leaving. Since the load was sold as a
partial, the carrier added two pieces to the trailer as evidence by photos
taken at the delivery location. The
shipment arrived several days late, and once at the delivery location the load
was declined due to damage to the pallet supporting the equipment. The consignee refused to accept the shipment
because it appeared to have sustained some damage. The visible damage appeared to only be done
to the pallet, but because the equipment was a calibrated high dollar piece of
equipment, the consignee did not want to sign for the shipment due to the possibility
of non-visible damage. At the destination
the consignee's pictures showed the palletized equipment appeared to have been
loaded on the slant of the double drop trailer rather than on the flat portion
of the trailer well. After questioning
the carrier they stated that the equipment was loaded that way by the
shipper. The shipper countered this
statement and said it was not loaded on a slant and it appeared that the load
was adjusted prior to arriving at the consignee. There were no pictures taken at the original
pickup so it was one word against another.
Though it would have had to go to court to possibly prove, it appeared
that the carrier adjusted the load to make room for two additional
vehicles. Making a long story short the
carrier and consignee couldn't agree so the carrier took the equipment to his
yard. The carrier refused to allow the
load to be unloaded at another location.
They then started to charge unreasonable storage (hostage) fees and
demanded the load be paid in full plus storage fees, and to be released from
all liability prior to releasing the equipment.
The load turned into a major issue requiring legal assistance, time and
money. It eventually cost the customer,
and Somerset money to finally obtain the equipment.
There were
several other issues which could be examined such as; the right of the
consignee to decline the shipment, the right of the carrier to hold the
equipment, carrier performance standards as well as possible criminal acts, but
for the purposes of this article we will focus on due diligence. After review, better due diligence and several
simple procedures could have saved all parties time and money.
Verify your
Carrier Partner.
Somerset's
Brokers/Agents verify carriers using systems such as Internet Truckstop's
Carrier Performance Rating (CPR), SAFERWEB system and Transcore's Carrier
Watch, as well as our internal Freight Management System. These research systems greatly diminish the
chances of partnering with undesirable carriers. On high dollar loads it is even more
important to partner with carriers you know and have done business with
previously.
Effectively
verifying your partner requires a Carrier Review:
. Check
F.M.S.C.A/FHWA Safer System to verify carrier's information (www.safersys.org)
. Check the
carrier on Load/Truck posting sites like Internet Truckstop, Transcore or with
the Transportation Intermediaries Association or similar systems
. Check for
negative reports
. Hesitate to use
any carrier rated "C" or lower
. Check the
carrier's corporate information, as well as phone/fax #'s, addresses, etc.
. Verify the
carrier paperwork if you do not have an existing relationship
. Check for
discrepancies or "red flags"
. Check phone/fax
#'s if different from their corporate office, contact the carrier's corporate
office to ensure that individual/office is part of their company* Review the
carrier's insurance
. Contact the
carrier's insurance company if something looks incorrect or altered
. Ensure all
documentation/carrier information is up to date prior to moving the load
Coordinate and
Communicate with Your Customers (Ensure They Do Their Part).
As the
transportation expert, inform and verify pertinent information concerning the
high dollar shipment. The shipper is
expected to be responsible for the proper packaging, labeling, as well as
proper paperwork or documentation about the equipment. Ensure you have this information and any
other specific information about the shipment.
Also coordinate and communicate with the receiver since they are responsible
for noting any loss or damage once it arrives.
Coordinate with both parties to ensure you have the correct information
to pass to the carrier/driver and if damage occurs then the claim process can
begin.
Verify
Documentation and Shipment for Correctness.
Prior to loading
ensure you have the documentation and specifics associated with the load. Coordinate to have pictures taken of the load
prior to loading, and as important after the equipment is loaded and secure. The pictures will verify the equipment was
secure, loaded properly and protected. Pictures should be recorded of the
shipment tarped as well. The load should also be verified at the destination
with pictures and supporting documentation to verify that no damage occurred in
route. Pictures and supporting
documentation to include the signed clean or annotated bill of ladings can be a
powerful tool to successfully support a possible claim.
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