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Private label shipments and delayed claims

ANSWER:  Although our guidelines encourage filing of a claim within 30 days as a best practice, a binding limitation would need to be specified in the contract of carriage. For regulated freight the minimum time a carrier can provide for is nine months.  Exempt carriers may be able to provide for less time, especially with fresh produce which must typically be sold within a matter of days—but the minimum time allowed is not fixed or certain—it must be “reasonable” per section 7-309(c) of the Uniform Commercial Code (UCC).

Specifically the UCC (7-309(c)) provides—Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the shipment may be included in a bill of lading or a transportation agreement.

If the time to file a claim is not limited by contract, then the state’s statute of limitations would apply (usually four-plus years). This lack of a practical default limit puts the truck broker in a difficult position with respect to settling up with underlying carriers when delayed by the hiring vendor.  However, going on the offensive by pursuing the collection of your freight bill will help “smoke out” the specifics of any claims that may be asserted against you and the underlying carrier.

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Your questions? Yes, send them in. Legal answers? No, industry knowledgeable answers. If you have questions or would like further information, email tradingassist@bluebookservices.com.

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Doug Nelson is vice president of the Special Services department at Blue Book Services. Nelson previously worked as an investigator for the U.S. Department of Agriculture and as an attorney specializing in commercial litigation.