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.

The simple procedures described above will greatly diminish the possibility of a problem shipment.  Using a qualified and known carrier coupled with effective communication and coordination with all parties, followed by proper documentation and verification of the shipment with photographs are proven ways to ensure successful transport of high dollar freight.