Articles
Fine Print: Supply Chain Legal Issues
10 Ways to Improve Your Supply Contract
Brexit, COVID-19, and the Suez Canal congestion brought Force Majeure clauses in supply chain contracts into sharp focus. Force Majeure clauses seek to limit the liability of a party whose performance is affected by an unforeseen event beyond that party’s control.
Read More
Power of Prevention: Compliance Audits
Organizations historically performed supplier contract audits to monitor and manage contracts and ensure all parties meet their agreed-upon terms. This includes finding past billing errors and recouping funds when overbilling is identified.
Read More
Updated Uniform Bill Of Lading Changes: Are You at Risk?
Key components of the bill of lading unexpectedly changed in August 2016. While the changes may appear subtle, the implications sent shockwaves through the transportation industry. As the new standard approaches one year, it is important to re-visit the newly adopted terms to mitigate potential pitfalls. The uniform bill of lading is the default form […]
Read More
When to File Loss and Damage Claims: Know Your Rights
Damage, loss, and delays are inescapable. When these events occur, the shipper has to file a claim to recover the loss. Shippers should understand the claims process and law because the legal principles are unique to the shipping industry. First, it is important to understand that a cargo claim is based on a breach of […]
Read More
Accidents Happen: Is Your Transportation Partner Prepared?
When a personal injury or wrongful death lawsuit is brought against a commercial transportation company after a motor vehicle accident, creative lawyers are increasingly including negligence claims. Such claims focus attention on how the transportation company hires, trains, supervises, and disciplines its drivers. Falling short in these practices can form the basis for a jury […]
Read More
Top 5 Things Shippers Need to Know about the Canadian eManifest
Moving data is often as important as moving freight. The Canadian eManifest is an important step toward improving security by receiving cargo and conveyance information before a shipment arrives at the border. The list below compiles the top five items that shippers, their carriers, drivers, and any company involved in U.S.–Canada highway transport should know […]
Read More
SOLAS Container Weight Verification: What Shippers Need to Know Now
Container stack collapses; vessel instability; injury to dock and vessel workers; damage to cargo, ships, and port machinery; insurance claims; and significant environmental impact have added to the urgency for an accurate container weight. As a result, the International Maritime Organization (IMO) implemented the Safety of Life at Sea (SOLAS) requirement to verify container weight […]
Read More
Lifting the Fog on Extreme Caution Driving
Inclement weather such as rain, snow, and fog is a constant feature of motor vehicle travel. During poor conditions, commercial truck drivers and their dispatchers must use discretion when deciding whether travel should continue and in what manner. Federal Motor Carrier Safety Regulations (49 C.F.R. § 392.14) specifically address driving in adverse weather conditions and […]
Read More
How to Handle DOT and GHS Regulations
The Globally Harmonized System of Classification and Labeling of Chemicals (GHS) deadlines that went into effect on June 1 and December 1, 2015, respectively, have significantly impacted U.S. chemical manufacturers and distributors. By now, all chemicals being shipped by manufacturers and distributors should meet the Occupational Safety and Health Administration (OSHA) Hazard Communication Standard (HCS) […]
Read More
The Trials and Errors of Preventability Determinations
After a motor vehicle accident, it is common for motor carriers to determine whether their driver could have prevented the accident. This positive, safety-oriented process is known as a preventability determination. Carriers make this assessment for several reasons: to evaluate and possibly change company policies and procedures to prevent similar accidents, to determine whether it […]
Read More
Driver Coercion Rule: What Shippers And Carriers Need to Know
As a new truck driver coercion rule goes into effect, the need for communication with drivers is greater than ever. Motor carriers, shippers, receivers, and transportation intermediaries need to train drivers on the updated policies and procedures. In November 2015, the Federal Motor Carrier Safety Administration (FMCSA) adopted regulations that prohibit drivers from being coerced […]
Read More
How “Chain of Responsibility” Affects the Supply Chain
Public concern over highway safety has never been more in the spotlight than it is today. In particular, increased scrutiny came about after the June 2014 traffic accident involving the vehicle of well-known actor Tracy Morgan and a Walmart tractor-trailer. Walmart agreed to provide generous civil settlements to the damaged parties, even though its driver […]
Read More
Alleviating Gridlock: A Chicago Case Study
To improve the flow of rail operations in the Chicago area, Amtrak CEO Joseph Boardman tasked Amtrak’s Gateway Blue Ribbon panel with examining rail congestion in Chicago and offering recommendations to improve traffic flow and alleviate gridlock. The panel derived its recommendations from extensive interviews with freight and passenger rails; federal, state, and local government […]
Read More
Positive Train Control: Negative Impact On Railroads?
The Rail Safety Improvement Act of 2008 (RSIA) mandates that Positive Train Control (PTC), a set of advanced technologies designed to stop or slow a train before accidents occur, be implemented across approximately 60,000 miles of the nation’s rail lines by Dec. 31, 2015. Class I railroad main lines that handle any poisonous, inhalation, or […]
Read More
Rise of the Machines: How Self-Driving Trucks Will Alter the Supply Chain
If you drive through Nevada on your family vacation this summer, you may glimpse what many believe is the future of trucking in this country. Daimler’s Freightliner division unveiled its first self-driving truck licensed for commercial use in Nevada, one of the first states to permit autonomous passenger vehicles and the only one to license […]
Read More
How Amtrak’s Supreme Court Case Affects Freight Shippers
Track-sharing among railroads has long been a complicated issue. The U.S. Supreme Court recently reviewed a case determining whether Amtrak has the authority to regulate privately owned freight railroads with which it shares rail. The Rail Passenger Service Act of 1970 was supposed to reinvigorate a national passenger rail system. The legislation created Amtrak to […]
Read More
Negligent Hiring: Not Just a Broker/3PL Problem
It may come as a great surprise to shippers that, according to a recent ruling by the New Jersey Supreme Court, they may be held liable for "negligent hiring" of truckers. Since the Schramm v. Foster case—a Maryland court ruling that found a 3PL guilty for hiring a carrier that caused an accident injuring two […]
Read More
Proving Material Deviation
One question shippers frequently ask is, "How do we avoid carriers’ liability limits when they are negligent?" Generally speaking, carriers’ limitations apply if they are lawfully incorporated into a contract of carriage. If a shipper agrees to contract a low liability limit to obtain a lower rate, carrier negligence does not overcome that limit. In […]
Read More
Freight Transport Free-for-all
How can shippers tell whether they are contracting with a legitimate carrier when carriers and third-party logistics providers (3PLs) offer so many different deals? What exactly constitutes a 3PL? And who monitors transportation entities today? These questions, and others, plague shippers in today’s deregulated transportation environment. It is not always easy to tell whether a […]
Read More
2005: Happy or Unhappy Anniversary?
Last year marked the anniversary of several laws and events that revolutionized transportation regulation in the United States: The 10th anniversary of the Interstate Commerce Commission’s (ICC) demise. The 25th anniversary of deregulation in the railroad industry. The 25th anniversary of partial deregulation in the motor carrier industry. The 28th anniversary of deregulation in the […]
Read More