Ask Mr. Broker
The Bill Of Loading (BOL) As “Title”To Cargo
Last Updated: Dec 6, 2007 - 8:08:07 AM
By David G. Dwinell
Dec 1, 2007 - 8:06:32 AM
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The Bill of Lading (BOL) is title to the cargo and property of truckers. Brokers may not declare an interest in a cargo, or be listed as an “Additionally Insured” on truckers Cargo Insurance, unless an untrained trucker gives up their trucking rights in a “Continuing Broker Contract. Brokers who demand the “original” at billing time are not Master Brokers, and don’t know regulations specifically says “copy of Bill of Lading”. 49 CFR 370 et seq.
The Bill of Lading is the ruling Contract for Interstate Commerce and is backed by section 8 of the United States Constitution. It is a contract between the Trucker and the Consignor/shipper. A third party may be listed in this Contract, as they are not a “mode” of transportation and are un insured- hauling is between the trucker and shipper. The consignee is “incidental” to this Contract under Law.
If you are a trucker with Authority working with anyone who presents a “License” for loading, you need to scratch out the broker’s name on the BOL and insert your own name and MC #. Brokers may not declare an interest in a cargo as they are uninsured.
If the Consigner/shipper refuses to let you the trucker change the name, then deliver the cargo on your own Bill of Lading listing yourself as the “carrier”, and invoice broker with both copy of the original BOL and your own BOL as “Proof of Delivery”.
Brokers must accept this practice as they “work on behalf” of the Trucker’s Authority. In the event of non payment by the broker, trucker with Authority has the power to invoice the consignor/shipper, and/or consignee. The Consignor/shipper and Consignee, have no defense against your truckers collection efforts. Having paid a broker, doesn’t relieve the consignor/shippers obligation as they are considered to have paid their Agent – the broker. The Consignor/shipper created the Bill of Lading between themselves and the trucker with Authority, a valid and premier Contract for Interstate Commerce.
Don’t miss next months installment #8 Freight Claim for Shortage. Questions askmybroker@loadtraining.com David G Dwinell is a nationally recognized Expert in transportation brokering and teaches the subject.