STB Upholds Bill of Lading Changes
This story appears in the Aug. 22 print edition of Transport Topics.
A last-ditch effort from two shipper groups to suspend changes to the bill of lading failed when the Surface Transportation Board denied their Aug. 12 request but offered an avenue to address their concerns later this year.
The ruling means the changes to the document, which enumerates the terms and conditions between shippers and motor carriers on loss or damage, are now in effect. However, STB will conduct a full review in October.
The National Motor Freight Traffic Association proposed the changes in mid-July, but Nasstrac and the Transportation and Logistics Council filed petitions in late July to have STB suspend the implementation because they believed it would make it harder for shippers to hold carriers liable for damage.
NMFTA argued the rule should take effect because the changes are consistent with case law governing motor carriers.
“We are pleased the STB recognized there was no valid reason to suspend the revised Uniform Straight Bill of Lading,” NMFTA Executive Director Paul Levine said.
But the shipping groups remain optimistic that the outcome will go their way.
“Neither side won the first round, and we’ll have to wait till October or November to see what the STB does. Nasstrac will certainly make further filings, and I’m sure the [Transportation and Logistics Council] and NMFTA will, too,” said John Cutler, an attorney for Nasstrac.
George Pezold, executive director of the Transportation and Logistics Council, told Transport Topics that he is “somewhat disappointed,” and is worried about what will happen in the interim.
“It is quite likely that carriers will start taking advantage of the new language — particularly the change to the burden of proof for loss or damage claims,” Pezold said. “This would certainly impact the smaller and less sophisticated shippers that don’t have the ‘clout’ to negotiate contracts in order to protect their interests.”
One of the changes that went into effect shifts the entity held liable for any loss or damage from “the party in possession” to “the carrier shown as transporting the property.” Another changes “the burden to prove freedom from negligence is on the carrier or party in possession” to “the burden to prove carrier negligence is on the shipper.”
The shipping groups believe this is an impossible standard to meet, but NMFTA counters that all the updates are consistent with the Carmack Amendment, the overarching law that governs motor carriers.
STB wants both sides to submit arguments on the issue before Sept. 12 and send all replies by Oct. 3. The board writes that all parties should address whether STB can get involved in the issue because of a 2007 decision.
“In that proceeding, the board terminated its approval of all remaining motor carrier rate bureau agreements to help ensure a competitive motor carrier industry,” the ruling reads. “Parties should address the effect of this decision and any impact it has on whether the board should investigate the proposed changes to the Uniform Straight Bill of Lading at issue here.”
