FMCSA Updates SMS Methodology
The Federal Motor Carrier Safety Administration (FMCSA) has enhanced the Safety Measurement System (SMS) Methodology so that it includes violations based on new cell phone use regulations and provides more detailed breakouts of some existing brake, wheel, and coupling regulations. In February, when the January snapshot is released, motor carriers may notice the following two changes. The addition of five texting and cell phone use violations in the Unsafe Driving Behavior Analysis and Safety Improvement Category (BASIC) as outlined below. The...
read moreStart the New Year Right with a Quick Checkup
Every business should periodically check its legal status and make sure that all information listed by various governmental agencies is up to date and correct. The checkup is not difficult and, unless you find something that needs to be updated or corrected, it should not be time consuming. Below is a list of what you should check on: 1. Secretary of State Registrations. Check the status of your business on the Secretaries of State websites in those states where your business is incorporated, organized or formed, in which it is...
read moreShipper Bankruptcy: Can a Broker Sue the Consignee?
Facts: A broker’s shipper/customer has been operating under Ch. 11 (reorganization), but recently converted the case to Ch. 7 (liquidation). Question: Can the broker collect its freight charges from the consignees even though they have already paid the charges to the bankrupt shipper? Answer: Probably, but you need to proceed with caution. “Automatic Stay.” The bankruptcy code provides for an automatic stay immediately upon the filing of a bankruptcy petition by a debtor. No legal proceeding may be commenced or...
read moreCarrier’s Possessory Lien and Holding a Shipment Hostage
Facts: A broker dispatched a carrier at an agreed upon rate set forth in a load confirmation. While en route a destination changed and a drop was added. The broker orally agreed to pay a higher rate. However, when the carrier made the first drop he called the broker and demanded a substantially greater amount be paid ($800) before he would make the second delivery. Question: Is it ever okay for a carrier to hold a shipment hostage under these circumstances? Answer: A carrier has a possessory lien for the agreed upon freight charges...
read moreCan Brokers Legally Offset Freight Loss and Damage Claims?
Facts: A broker states that offsetting freight loss and damage claims against freight charges owed is a common everyday occurrence. However, the broker recently posted three shipments on a load board and arranged for a single carrier to transport all three shipments. Shipment number 1 was delivered without problem. However, there was a claim on shipment number 2 that exceeded the amount of freight charges owed for that shipment. The broker therefore offset the claim amount against the freight charges on both shipment numbers 1 and 2. ...
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