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RATE BASES

TRANS-CONTINENTAL CASE, 1924

On August 11, 1923, Fourth Section Application No. 12436 w continental carriers, seeking to have rates on a number of commodi points, Groups “D” (Chicago) to “J” inclusive, established at Pacific that would violate the Fourth Section of the Act at intermediate p quest, in principle, did not differ to any great extent from that consi continental Cases of 1922,” 74 I. C. C., 48. Hearings on this appl known as "Reduced Rates on Commodities from Originating Terri Indiana State Line to Pacific Coast Terminals”) have been held an port has been made by Examiner M. A Pattison, under which it that carriers, application be denied.

AGGREGATE OR

In applying any general basis for rates from one territory to ar case of the basis for rates from Eastern shipping points to Transritory, it frequently occurs that the aggregate of the intermediate ra on a combination basis) is lower than the through rate published in the general basis. The Fourth Section of the Act to Regulate Con

that it shall be unlawful to charge any greater compensation as INTERMEDIATE than the aggregate of the intermediate rates. Therefore, to guard ag

cation of a through rate from Eastern shipping points to Trans-Contin that is higher than the combination of intermediate rates, the tariff rates between the above points provides that if the aggregate of int via the route over which the shipment moves, wherever found, mak joint through rates contained in the tariff, such aggregate of rates will

RATES

RATES FROM
SOUTHEASTERN
POINTS

The rates from Southeastern points to Pacific Coast Terminal as a rule, made on the basis of lowest combination on St. Louis, Me Orleans, the factors used beyond these points being the proportions r western lines out of the through rates from corresponding Group point Ohio and Potomac Rivers, the factors to these points being whatev eastern lines would accept for their services.

SHIPPING ORDERS AND BILLS OF LADING

SHIPPING ORDERS AND BILLS OF LADING

(See Forms Nos. 1, 2, 3, 4, 5, 25, 26, 55, 56.)

IMPORTANT
TRANSACTION

The proper preparation of shipping orders and bills of lading is one of the most important transactions connected with shipping. Any mistake in the entries made on these documents may be very costly, particularly a mistake in the name of consignee or destination, the description of the articles shipped, or the routing instructions.

COMPLETE
INSTRUCTIONS

Bills of lading and shipping orders should be legible and complete as to name of consignee and destination, number and description of articles, and weight, and any special conditions authorized by tariff or classification, such as released valuation, refrigeration or ventilation, etc., clearly and fully endorsed thereon.

ADDRESS

When shipment is consigned to a large city its delivery is often facilitated by including on bill of lading and shipping order, in space provided therefor, the street address of consignee or party to be notified.

ONE SHIPPER,
CONSIGNEE AND
DESTINATION

The name of only one shipper, one consignee and one destination may appear on bill of lading and shipping order, but this rule does not prohibit the showing of the name of party to be notified when shipment is consigned "To Order," or the address of consignee when shipment is consigned to a point beyond the final carrier's point of delivery.

SHIPPER'S
OPTION

Shippers are given the option of shipping under conditions of Domestic Bills of Lading, or Export Bills of Lading, or under liability imposed by common law, and when the carrier is notified that the terms and conditions of the bill of lading will not be accepted the freight rate will be somewhat higher than if so shipped.

BASIS OF
CHARGES

In asssessing their charges the carriers apply the rates applicable for the articles described by the shipper in his shipping orders, and any inadequate description or any description not corresponding to that contained in the tariffs and classifications of the carriers usually results in higher transportation charges being assessed than those to which the shipper is entitled. It is by law the duty of a carrier to apply correct transportation charges for the articles actually shipped, and this implies a duty on its part to examine each shipment. It is, however, not practicable for a carrier to examine every shipment, and for data required for the preparation of its bills for transportation charges, it depends almost entirely upon the shipping orders prepared by shippers.

TRADB NAMES

The trade names of articles should never be used in shipping orders and bills of lading, unless the articles are listed by those names in the tariff or classification under which they are to be shipped, or unless those names are preceded or followed by descriptions of the articles as given in the tariff or classification.

SHIPPING ORDER AND BILLS OF LADING

DESCRIPTION
OF GOODS

A description such as "Iron and Steel Articles, Group A,” followed by only the number and kind of containers or packages in the shipment, is inadequate because nothing is given to indicate which "Group A" is intended or where it is to be found, and such omissions open the way to errors and disputes. In such a case specific reference should be made to the tariff or classification containing the “Group A” list of articles shipped; and even this is no definite or specific declaration as to the exact articles contained in a shipment. Articles should be definitely listed in the shipping order and bill of lading by their respective names and descriptions as given in the tariff or classification. It is not correct to describe a carload shipment of fifty crated machines as “1 carload machines;" it should be described as "50 crates machines," or “50 machines, crated," stating the kind of machines.

In no case should the incentive of lower transportation charges be allowed to bring the shipper into the practice of making misstatements of facts in shipping orders and bills of lading, for this, aside from being a thing morally wrong, is prohibited

by law. Any shipper who, knowingly or willfully, obtains or attempts to obtain, by DESCRIPTIONS false billing, false classification, false weighing, false representation of the contents

of packages, or by any other device or means, whether with or without the consent or connivance of the agent or representative of the carrier, transportation at less than the regular rates is subject to a heavy fine and imprinsoment, or both.

MIS

If the actual weight of a shipment which is loaded by the shipper should be less than the prescribed carload minimum weight for the goods shipped, no reference should be made in the shipping order or bill of lading to the carload' minimum weight, such as “20,000 as 30,000 pounds," unless carload service at the carload rate and carload minimum weight should be desired. The carriers are prohibited from charging more for a less than carload shipment than for the same shipment at the carload rate and carload minimum weight; therefore, the absence of any reference in a shipping order or bill of lading to the prescribed carload minimum weight, when the actual weight is less, will not deprive the shipper of the benefit of charges based on the carload rate and carload minimum weight when the charges thus obtained are less than the charges computed at the less than carload rate and actual weight. On the other hand, reference in a shipping order and bill of lading to the carload minimum weight, when the actual weight is less, is equivalent to a notice to the carrier that carload service is desired, and if the carrier renders that service the shipper is obliged to pay charges based on the carload rate and carload minimum weight, even though the charges might be less on the basis of the less than carload rate and actual weight.

WEIGHTS

TARIFF

The tariffs and classifications of the carriers contain numerous specifications, restrictions, and conditions relative to the preparation of goods for transportation, and also special requirements as to the preparation of shipping orders and bills, of lading for certain articles and for articles shipped in certain kinds of containers. Different ratings are published for the different kinds of packages, or containers, in which goods may be shipped, and also for the different ways that articles may be

packed for transportation. REQUIREMENTS

The shipper should be thoroughly familiar with these various packing and package specifications and the requirements of the carriers with respect to the preparation of shipping orders and bills of lading, so that, in preparing goods for transportation and in preparing shipping orders and bills of lading, he may be certain that everything is done to insure prompt movement and proper delivery of his shipments, and also the application of the lowest possible charge for transportation.

SHIPPING ORDER AND BILLS OF LADING

BOX
CERTIFICATE

In preparing shipping orders and bills of lading, an entry very frequently omitted is the certificate prescribed in Rule 41 of the Consolidated Freight Classification, which governs the shipping of articles in pulpboard, fibreboard and double-faced corrugated strawboard containers. In that rule specifications are given for the construction of these containers, and when so constructed it is required that a certificate

to that effect, made in the form given in the rule, shall be entered on shipping orders and bills of lading. If articles are shipped in containers made of pulpboard, fibreboard or double-faced corrugated strawboard, but not in accordance with specifications of Rule 41, or if they are constructed to meet the requirements of that rule and the certificate to that effect is not entered on shipping orders and bills of lading, the shipper will be penalized to the extent of twenty per cent. of the rate applicable to the same articles when shipped in containers and under shipping orders and bills of lading that meet the conditions of the rule.

In listing on shipping orders and bills of lading, articles shipped in wooden, pulpboard, fibreboard or double-faced corrugated strawboard boxes, it is not necessary to indicate the character or material of which the boxes are constructed. There are not different ratings established for goods shipped in boxes constructed of different kinds of material. The use of the word "box" is sufficient. If a shipment consists of articles packed in both wooden and pulpboard, fibreboard or double-faced corrugated strawboard boxes, or of the latter alone, it is only necessary to place on the shipping order and bill of lading the certificate required under Rule 41 of the classification. The word "carton" is often used to denote outside shipping containers constructed of pulpboard, etc., but this is an improper use of the word. In shipping circles, à carton is understood to be a pasteboard box used as an inside container; that is, for packing and protecting goods to be placed in boxes or other outside containers used for transportation.

SPECIFYING
ROUTE

A carrier cannot be presumed to know what delivery at destination the consignee desires. If the shipper fails to specify in his shipping order and bill of lading the through routing or the particular delivery required, the carrier, when the destination may be reached via two or more routes, is justified in assuming that any one of the routes will be satisfactory to the shipper or consignee, so long as the movement of the goods is made over the cheapest reasonable route with regard only to the charge for transportation service from the shipping point to destination; and having so forwarded the shipment, the carrier is not responsible for any expense involved in transferring it from the station or place of delivery of one carrier to the station or place of delivery of another carrier at destination. When a shipment may be moved over two or more routes, the consignee should designate in his order the particular delivery desired and the shipper should give the carrier instructions accordingly, otherwise the carrier cannot be held responsible for charges at destination covering switching or transfer service required to effect the proper delivery.

ILLEGIBLE
WRITING

Illegible shipping orders and bills of lading are a source of many errors in the assessment of transportation charges and many delays and mistakes in transportation services. Every shipping order and bill of lading shoyld be so prepared as to avoid doubt concerning any entry.

ALTERATIONS

Alterations and erasures should not be made in shipping orders and bills of lading by either the shipper or the agent of the carrier before or after shipments are forwarded, unless the correction is specially noted and signed by the carrier's agent, so that questions as to what was actually shipped may not subsequently arise. SHIPPING ORDER AND BILLS OF LADING

STRAIGHT BILL
OF LADING

The “Straight” Bill of Lading (see Forms 1 and 4) is a non-negotiable document by which a carrier acknowledges the receipt of goods and contracts for their transportation. The surrender of the original of this form of bill of lading is not required by the carrier upon delivery of the goods at destination. In this form the party to whom delivery of the shipment is to be made (the consignee) is definitely given and the carrier's duty is to send notice of arrival and make delivery of the shipment to that party.

ORDER BILL
OF LADING

The "Order" Bill of Lading (see Forms 2 and 5), sometimes called "OrderNotify" Bill of Lading, is a negotiable document by which a carrier acknowledges the receipt of goods and contracts for their transportation. In this form of bill of lading the carrier agrees to deliver the goods only upon surrender of the original bill of lading properly endorsed; and with this exception, the terms and conditions of the "Order” Bill of Lading as regards the duties and liabilities of the carrier are the same as those of the "Straight" Bill of Lading.

The purpose of the "Order” Bill of Lading is to enable the shipper to obtain payment of the purchase price of the goods before they are delivered. This is accomplished by the shipper's sending the original bill of lading through the banks with a draft drawn on the party by whom payment is to be made. Upon payment of the draft the said party receives the bill of lading and surrenders it to the agent of the carrier and receives the goods. In this form of bill of lading the name of the party to whom delivery of the goods is to be made is not specifically stated. The party to be notified of their arrival is given, but this does not mean that he is the one to whom delivery will be made. So far as the carrier is concerned, delivery is to be made to any one who surrenders to it the original bill of lading with proper endorsements thereon, this being a fulfillment of its contract with respect to delivery of the goods.

UNFORM
LIVE STOCK
CONTRACT

For the transportation of live stock a special form of bill of lading, known as the Uniform Live Stock Contract, is provided by the carrier which contains terms and conditions differing in some respects from conditions of the Uniform and Export Bills of Lading. Any special conditions authorized by tariff or classification should be clearly and fully endorsed on the contract by the shipper (see Form 3).

GOVERNMENT
BILL OF
LADING

For the transportation of goods for the United States Government a special form of bill of lading is used (see Form 56).

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