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Shippers Challenge Liability Changes in Uniform Bill of Lading

Some shippers are unhappy about changes to the standard bill of lading used by less-than-truckload carriers.

As the Journal of Commerce reports, the Transportation and Logistics Council and NASSTRAC say changes to the National Motor Freight Traffic Association uniform bill of lading, which went into effect August 13, are unfair to smaller shippers that rely on the BOL as their contract.

The NMFTA, which represents more than 600 less-than-truckload trucking companies, says the changes simply update and clarify provisions of the bill of lading, which was last revised in 1997.

The shippers' biggest problem with the revised agreement is language related to proving carrier negligence.

Section 1(b) states that “the burden to prove carrier negligence is on the shipper.” The previous UBOL stated “the burden to prove freedom from negligence is on the carrier.”

The shipper groups contend that this is in violation of the Carmack Amendment, the 1906 law that established uniform cargo liability standards.

NMFTA lawyers, however, told JOC that they're not changing the law. “The shipper has the burden of proof to show (a shipment) was tendered in good condition, delivered in damaged condition, and then the burden shifts to the carrier, to prove it was not negligent.”

The Surface Transportation Board has denied a petition by the supper groups asking it to suspend the controversial UBOL provisions and questioned whether it even had the authority to investigate.

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J.B. Hunt Transport Services, Inc. to Participate in Longbow 9th Annual Industrial Manufacturing & Technology and Cowen and Company 9th Annual Global Transportation Conferences

Economic Watch: Manufacturing Declines, GDP Expectations Lowered

A preliminary look at the nation's manufacturing sector shows it continues to expand following a recent downturn. Separate reports show expectations of long-term economic growth have been moved lower and the housing market is suffering from low inventory levels.

U.S. goods producers saw a further upturn in overall business conditions during August, though the rate of improvement was softer than seen in July, according to a first reading for the month from the Flash U.S. Manufacturing Purchasing Managers' Index (PMI) provided by the financial information services provider IHS Markit.

It registered 52.1 in August, down from July's nine-month high of 52.9. The August reading pointed to a moderate rate of improvement that was weaker the post-Great Recession average. While output continued to rise markedly, total new work rose at a slower pace and employment expanded at the weakest rate in four months.

U.S. manufacturers signaled increased output for the third month running in August. The rate of expansion remained solid overall, having edged up slightly from July to a nine-month high. Anecdotal evidence suggested that new product launches, stronger underlying demand and new marketing strategies supported production growth in August.

“Taking the July and August readings together suggests that manufacturing is enjoying its best growth so far this year."

“The August drop in the PMI is a disappointment but less worrying when looked at in the context of July's better-than-expected reading,” says Chris Williamson, chief business economist at IHS Markit. “Taking the July and August readings together suggests that manufacturing is enjoying its best growth so far this year in the third quarter, and should help drive stronger gross domestic product (GDP) growth.”

With August seeing the largest rise in exports for almost two years, Williamson said, the improved trade performance should also help drive faster economic growth.

“However, a slowdown in overall order book growth is ...Read the rest of this story

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