Hauling Freight During the COVID-19 Crisis

Posted on April 08, 2020

As we all face this challenge of the COVID-19 pandemic, transportation, especially trucking services, have been deemed as essential services.  The importance of moving cargo from one point to another has been given top priority. Unfortunately, the current environment does not make this task an easy one. While many truck stops remain open for fueling, they are closed to all other truckers’ necessities. Many have even restricted truckers from parking and sleeping in their vehicles on premises.  While they try to keep their mechanical service centers open, many have shuttered as their employees are unable to make it into work.

As a cargo hauler, you face new challenges. While this memo is geared to the refrigerated loads, some non-reefer loads also have an expiration date and would be covered under the same guidelines.

Scenario 1.  While on the road, your vehicle breaks down. You drastically attempt to locate a repair facility to expedite the repairs but due to delays in getting parts, and no alternate vehicles available, your delivery is late and rejected by the consignee.  The shipper also refuses to have the cargo returned to them.

In this situation, you need to do everything to reduce your exposure. This may include the sale of the cargo to a salvage handler or jobber.  You will need to utilize these funds to offset any claim filed against you.  If you face yourself in this situation, and have no resource for the cargo, we will be happy to assist and supply you with the name of a salvor that may be able to assist you.

Scenario 2. You pick up a refrigerated load and when you go to make the delivery the consignee’s facility is closed. All efforts to deliver the load have failed and the shipper has refused to take the load back.

In this regard, you need to understand On-Hand Delivery Notification.  A simple definition:

A Carrier-prepared document used to notify the consignor and the consignee that a delivery cannot be completed, usually for reasons beyond the Carriers control and is meant to remove liability for non-delivery

From time to time and for various reasons, freight may be deemed to be “on-hand.” Freight will be deemed on-hand with or without notice. When freight is “on-hand” the legal liability of Carrier or TPC is altered from that of a motor Carrier to that of a warehouseman pursuant to the Uniform Commercial Code.

The procedures which Carrier agrees to and will take as a warehouseman involve the use of ordinary care to keep the lading in a safe or suitable place or to store the lading properly. Carrier shall place the lading in public storage, if available, unless Carrier receives contrary disposition instructions from Customer within twenty-four (24) hours, and may offer the lading for public sale if disposition instructions are not given by Customer within ten (10) days of Carrier’s initial notification to Customer. In the case of perishable lading, Carrier may dispose of the lading at a time and in a manner, Carrier deems appropriate to avoid the commodity from spoiling or passing it’s “Used by Date.”

Customer will be responsible for storage costs and reasonable costs Carrier or TPC incurs in acting as a warehouseman. To the extent any sale or disposal revenues exceed the storage costs and the costs Carrier or TPC incurs as a warehouseman, Carrier shall remit the balance to Customer. If Customer gives Carrier timely disposition instructions, Carrier will use any commercially reasonable steps to abide by such instructions. Customer will pay Carrier’s or TPC’s costs and any additional transportation costs Carrier or TPC incurs in doing so.

PLEASE NOTE:  All on-hand notices should be done in writing on company letterhead or by email with copies of any correspondence kept for future use.  Proof of Delivery is highly recommended.  Any telephonic conversations about the cargo and the on-hand notice should be followed up with some form of written summary of the conversation.

Here are the current rules and requirements of On-Hand Notice

Freight held in Carrier’s possession by reason of an act or an omission of the shipper, consignor, consignee, or owner or for customs clearance or inspection, or by order of a government authority, and through no fault of the Carrier, or when held by Carrier due to rejection by consignee or instruction from shipper based on damage, will be deemed to be “on-hand. “

Freight will be deemed on-hand with or without notice. When freight is “on-hand,” the legal liability of Carrier is altered from that of a motor Carrier to that of a warehouseman pursuant to the Uniform Commercial Code. The procedures which Carrier agrees to and will take as a warehouseman involve the use of ordinary care to keep the lading in a safe or suitable place or to store the lading properly.

Storage costs for on-hand freight will be assessed as follows: Storage charges on freight awaiting line haul transportation will begin at 7:00 AM, the day of business after notice of arrival has been made.

Freight stored in Carriers possession, will be assessed a charge of $2.00 per cwt. or fraction thereof, subject to the following minimum and maximum charges:

MINIMUM CHARGES: $20.00 per shipment per each 24 hours

MAXIMUM CHARGES:

PERIOD                                                                                    CHARGES

For the first 24 hours or fraction thereof                            $100.00

For the second 24 hours or fraction thereof                       $175.00

Third and each succeeding 24 hours/fraction                   $250.00

• Per shipment or per vehicle if more than one vehicle is used to transport the shipment
• Storage charges under this item will end when Carrier is enabled to delivery or transport the freight as a result of action by the consignee, consignor, owner or Customs Official.
• Storage charges under this item will not apply on the day Carrier places the freight in a public warehouse. In that event, a charge of $3.00 per cwt., subject to a minimum charge of $45.00 per shipment will be made.
• The term “FIRST DAY OF BUSINESS” as used in this item means Mondays through Fridays.
• Charges provided in this item will follow the terms of the bill of lading unless written authorization is received by another party. Carrier reserves the right to require payment prior to release of freight.

Need assistance? Please contact our trucking experts!

This blog was created by Carrier Specialty Services, LLC.