IanHow do lawyers deal with shipping issues? The most common issues that crop up with regard to shipping are late shipments, lost and damaged shipments. Most reputed shipping carriers include clauses that promise refunds in case of late or lost shipments. One can also insure shipments to protect one’s interests while in transit.
Motor carriers and shipment laws
Generally, motor carriers are subject to a regulatory framework comprised of Federal Statutes and Federal Regulations. This has been in effect in one form or another in the USA. The crux of this framework is that, the motor carrier is fully liable for damage to freight unless there is a valid limit of liability that is mentioned in the carrier’s tariff or in an individual contract. A very important piece of information here is that, a shipper has a nine month period in which he can file a damage claim against a motor carrier, and this nine month period cannot be shortened by the carrier by “rule, contract, or otherwise.”
Domestic air carriage and shipment laws
Domestic air carriage has been essentially deregulated in the USA. Carriers who ferry shipments by air have liability for loss or damage to cargo based upon the principles of common law. There is no Federal Statute or Regulation governing their liability. So, air carriers can limit their liability within their tariffs or contracts and they can also establish extremely short limits for the filing of damage claims, e.g. 30 days, 15 days or even less. This is very different from the law related to ground carriage freight. Lawyers would hence advise you to press charges as soon as possible when it concerns air carriage.
UPS and FedEx
Lawyers do not ask whether it is UPS or FedEx that transports a shipment, but in which capacity UPS or FedEx is acting. The Federal Motor Carrier Safety Administration website states that one member of the UPS corporate family, UPS Ground Freight, holds operating authority as a motor common carrier and one member of the FedEx corporate family, FedEx Freight holds operating authority as a motor common carrier. So, if a package were moved by FedEx Freight as a motor carrier, a shipper would have nine months to file a claim. That is not the case with other options that FedEx or UPS offer.
If UPS or FedEx moves a package pursuant to its motor common carrier authority, then any loss or damage claim should be filed against UPS or FedEx. In case UPS or FedEx uses its motor transportation broker authority to have another carrier move a package (which is not uncommon), then the claim should be filed against the carrier actually transporting the package. This is the case unless there is a tariff or contract provision whereby UPS or FedEx assumes responsibility.
Air carriage is exempt from a lot of charges and certain laws and regulations apply only when an air carrier is providing domestic services, and others apply when providing international services. Apart from air and ground transportation, UPS and FedEx also offer ocean transportation. The laws there are entirely different from those related to air/ground carriage.
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