Cargo Claims Changes – Effective 1/1/2018

by admin

December 8, 2017

Following Federal regulations & AFF Global Logistics guidelines the following change will become effective January 1, 2018: for cargo claims credit deductions would not be allowed to be taken from the freight charges. Clause # 18 of CSS Bill Of Lading states in part “(1) Freight shall be paid in cash without discount…”. Section 10761 of the Interstate Commerce Act (49 USC 10761) prohibits a carrier from collecting any charges different from those published in the carrier’s tariff. The payment of freight charges may not be postponed due to an alleged loss or damage. These charges should be paid in full and the portion applicable to the lost or damaged item should be included in a formal freight claim.

Federal regulations allow the carrier thirty (30) days from the date of receipt to acknowledge we received the claim and one-hundred-twenty (120) days from the date of receipt to make a determination of liability in order to pay, decline or make an offer of settlement. However, we are implementing changes that would allow us to receive, acknowledge, investigate and conclude your claim in a shorter amount of time. Our goal is to accomplish a final determination of liability within thirty (30) days from the receipt of your formal claim.

The following items are important to remember:
• Claims and payment of freight charges are two (2) entirely different transactions
• Interstate Commerce Commission regulations prohibit withholding payment of freight bills because of a pending claim (Administrative Ruling No. 128)
• Without payment of the freight charges, payment for transportation has not been made. A valid claim will not be paid until freight charges are made.

Burden Of Proof: The law requires that the claimant accomplishes three (3) things:

  1. That the carrier received the freight in good condition.
  2. That the freight was short or damaged at destination.
  3. The dollar amount of the loss or damage and the true measure of the loss.
    • Damage mitigation: Federal law requires the claimant to mitigate their claim.
      • i. If a product can be reasonably repacked, the claim would be filed for the cost of repacking
      • ii. If the product can be sold at discount the claim would be filed for the difference between the discounted price and the actual value of the product

Notice of loss or damage and time for filing a claim: If loss or damage is not apparent at the time of delivery, such notice must be given to your local Caribbean Shipping Services, Inc office within three (3)

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