Читать книгу Freight Brokerage Business - The Staff of Entrepreneur Media Inc. - Страница 13

Оглавление

CHAPTER

4

What Can Go Wrong?

In the freight business, the ability to deal with problems is essential. What can go wrong? Everything! No matter how well you handle your part of the process, there are certain things that are out of your control, but for which your shippers will look to you for assistance and solutions.

Because brokers are not carriers, they are generally not liable for loss or damage of a shipment while being transported. They can, however, be held liable if they are negligent, or if they offer services other than brokerage. Aside from the liability issue, part of your service package should include assisting your customers with problems whether you are responsible or not.

Transit Delays

It’s virtually impossible to list all the reasons freight might be delayed in transit. Weather is always a major concern. Trucks break down, traffic gets heavy, highways are closed, drivers get sick—and your customers will expect you to deal with it all. Cathy Davis of MCD Transportation in Smyrna, Tennessee, recalled a nightmare of a situation involving the proverbial “driver from hell.” She said, “The freight was held hostage [for payment] by an owner/operator even though the company had signed a contract agreeing to the terms. We had to pay air freight charges to ship more material to keep the customer’s production line going.”

Most of your problems won’t be that dramatic, but any time the freight does not move precisely as expected, your customers will be looking to you for situation management and information.

warning



Sometimes employees of the shipper or consignee, or at the warehouses those companies use, try to cover damages and shortages they cause by trying to make it look like the carrier’s fault. Protect yourself and your carriers while maintaining your relationship with customers and warehouses by insisting that drivers do their jobs thoroughly, which means checking the load and making complete documentation.

Cargo Loss or Damage Claims

As the broker, you are not responsible for cargo loss or damage claims. Keep in mind that although common carriers are generally liable for loss or damage to the goods they carry, they are not responsible for losses occurring due to acts of God, war, or government; through defaults on the part of the shipper; or for losses resulting from the nature of the goods.

Whatever the reason for the loss or damage, you need to understand the process of dealing with claims and be prepared to assist your shippers when necessary. If the driver does not review the bill of lading and inspect the freight before the shipment is loaded, the carrier doesn’t really have any options other than to pay a claim if the cargo is damaged or short when it arrives at the destination.

There will be times when the loading crew makes mistakes but realizes them after the fact and initiates a bill of lading change, which relieves the driver and carrier of potential claim responsibility. But you cannot rely on them to do so, and drivers should examine each load to be sure the documents match the shipment and sign for exactly what is received.

tip



If a particular driver or carrier repeatedly incurs damage claims, especially if they are filed by different shippers, find out why. The drivers may be doing a sloppy job of securing the freight or they may be stealing some of the goods they haul. You need to identify and correct the problem at its source or stop using that driver or carrier.

There will be times when it’s impractical or impossible for the driver to thoroughly inspect a shipment. For example, if the carrier drops a trailer at the shipper’s location to be loaded by the shipper’s employees and then picked up later for transport, the driver won’t know what went on the trailer. Or if the shipper assembles and shrink-wraps pallets of boxes, the driver may not be able to precisely count the number of boxes on each pallet. In those cases, the driver should write “shipper’s load and count” and/or “contents and condition unknown” on the bill of lading, which shifts the responsibility for shortages, overages, and concealed damage back to the shipper.

At the destination, the consignee’s receiving person should also inspect and count the shipment and note any discrepancies or visible damage on the delivery receipt.

When you learn of a potential claim—possibly from the shipper, consignee, or driver—immediately notify the carrier and dispatcher. Sometimes they hear of a possible problem from the driver making the delivery and let you know. Or you might not find out about a claim until you receive the proof of delivery and bill of lading with damage notations.

Not every damage notation results in a claim. For example, it’s possible for the contents to be fine even though the exterior of a box was damaged.

How the claim is handled often depends on the amount in question and the history and reputation of the shipper. For a small claim where damage was clearly noted on the delivery receipt, the carrier will probably pay without a detailed investigation. For a larger claim, the carrier may send out an inspector to take a look at the damaged goods. A carrier can decline to pay a claim if it determines that the cause of the damage was inadequate packaging, so consignees should keep the damaged items and the packing materials until the claim is resolved.

Shippers usually have standard forms used to file their claims. All you need to do is provide the shipper with the name and address of the carrier in question and, if necessary, assist them in reaching a fair and prompt settlement.

If your shipper is not familiar with procedures for filing a claim, explain that he or she will need to submit the following information to the carrier on a signed form:

• Carrier’s name and address

• Total claim amount

• Date of pickup

• Date of delivery

• Claim history

• Shipper’s full name and address

• Consignee’s full name and address

• Damages or shortages

The shipper will also need to attach any required or appropriate supporting documentation, including:

• Freight bill

• Bill of lading

• Invoice

• Inspection report, if any

• Itemized statement of loss

The carrier has 30 days to either pay the claim or acknowledge the claim and advise the shipper what else it needs to process the claim. Federal law requires carriers to investigate claims promptly and either settle the claim within 120 days or advise the claimant of any delay and then continue advising the claimant of the status of the claim every 60 days.

Responding to Problems

It’s possible for you to lose a customer over a service problem that wasn’t technically your fault. In most cases, though, you’ll find that shippers understand when things go wrong—when drivers do not show up, when equipment breaks down, when crashes occur on the highway, and so on.

What’s critical is that you don’t ignore problems or try to hide them from your shippers or carriers. Be proactive. When you find out about a problem, make sure everyone who needs to know is notified immediately, and then do everything you can to get the freight back on the road.

Freight Brokerage Business

Подняться наверх