STB Denies Shippers Group’s Request on Governing Rules
The Surface Transportation Board on Aug. 12 denied a request by a group representing shippers to suspend proposed changes to the bill of lading that governs motor carriers.
The Transportation and Logistics Council, the nonprofit representing the shipping community, had insisted new language to the bill of lading would be detrimental to shippers.
TLC, along with Nasstrac, told the board the proposed language would make it harder for shippers to hold motor carriers liable for damage during transport.
The National Motor Freight Traffic Association had proposed the changes, and a three-member panel of the Surface Transportation Board ruled to allow them to take effect. However, the board indicated it will consider comments on the matter, to be filed by Sept. 12 and Oct. 3, to determine whether to investigate the issue further. An investigation by the board has the potential of prompting a modification to NMFTA’s changes.
One update to the rules would shift the entity held liable for any loss or damage from “the party in possession” to “the carrier shown as transporting the property.” Nasstrac said the change would make it harder to determine with whom to file a claim on interline freight.
“In limiting liability to the carrier on the bill of lading, NMFTA is rewriting decades of precedent supporting shippers’ right to file claims with any participating carrier,” said John Cutler, an attorney for the shippers council.
NMFTA responded the changes are consistent with the Carmack Amendment and opponents are in error. The Carmack Amendment lays out the rights, duties and liabilities of shippers and carriers in the event of cargo loss.
NMFTA also proposed new language on the burden of proof in a claim for damages. The update would change it to, “The burden to prove carrier negligence is on the shipper.” Currently, it reads, “The burden to prove freedom from negligence is on the carrier or party in possession.”
George Pezold, executive director of the logistics council, strongly opposes the change.
“The shipper can’t prove what happened to his items on the truck. He doesn’t ride shotgun. He doesn’t know whether the driver turned the corner too fast, didn’t connect the [refrigerated unit] correctly or dropped it,” Pezold said.
Other changes would alter the window for when a party can begin to file a claim from the date of delivery to the date on the bill of lading and a clause on calculating financial caps to recover money for damage or loss, otherwise known as a release value.
Some shippers might not notice the updates because the full terms and conditions only appear on the long form bill of lading, according to the association. The short form, which many carriers will accept, tells customers they are bound to the terms and conditions, but doesn’t list them explicitly on the document.
NMFTA wrote in a filing to STB on Aug. 5 that “there was no attempt to burden shippers or diminish their rights and remedies.”
NMFTA stressed that once the shipper showed an item was in good condition at the origin, but damaged at the destination, the burden shifts back to the carrier to address negligence, even after the update.
“There have been substantial changes to the laws governing motor carrier transportation. However, the terms and conditions of the Uniform Straight Bill of Lading have not been kept up and thus have required revisions,” NMFTA Executive Director Paul Levine said.
The Uniform Straight Bill of Lading, which was most recently updated in 1997, has nine sections and establishes terms and conditions between the shipper and carrier. The bill of lading must conform to the Carmack Amendment.
Contributing: Ari Ashe and Eugene Mulero
