The Problem: No temperature instructions given to carrier.
The Key Point: Carriers are expected to properly cool fresh produce, even in the absence of temperature instructions.
The Solution: Refer to industry standard references for a reasonable and customary transit temperature setting.
QUESTION: We recently purchased a mixed load of red and white onions out of Southern Texas to be delivered to Jacksonville, FL for export to Puerto Rico. We tendered the load to a refrigerated carrier and instructed the carrier to refer to the bill of lading for transit temperatures. Unfortunately, the transit temperature instruction on the shipper’s bill of lading was left blank, and the carrier, rather than simply asking, decided not to run the reefer unit at all. Two days later, the load arrived with the red onions looking okay, but the white onions in poor condition. A U.S. Department of Agriculture (USDA) inspection of the white onions was called for and revealed pulp temps in the mid 70s, with 14 percent decay.
Our customer agreed to accept the red onions and we agreed (with the shipper’s approval) to place the distressed product with a wholesaler in Atlanta for the account of whomever it concerns. We are still awaiting returns, but our customer has issued a chargeback of $2,400 for lost container space on the trip to Puerto Rico. We have put both the truck and the shipper on notice. How would you suggest we assess losses and allocate responsibility in this situation?
ANSWER: Our Transportation Guidelines provide a partial answer to your question: “In the absence of a temperature instruction from the Hiring Party, Carriers are expected to maintain air temperatures as instructed on the bill of lading. In the absence of a temperature instruction on the bill of lading, conformity with the storage temperatures recommended by the USDA or other recognized industry sources may be considered customary and reasonable.” In other words, carriers are not excused from properly cooling fresh produce when no temperature instruction is provided. Per the USDA, onions are to be maintained at 45 to 60 degrees.
Consequently, the carrier’s failure to provide temperature control, in our view, represents a failure to use due care to protect the product in its possession. The fact that the red onions arrived without appreciable condition defects does not excuse the carrier for losses related to the product that was affected.
The Problem: No temperature instructions given to carrier.
The Key Point: Carriers are expected to properly cool fresh produce, even in the absence of temperature instructions.
The Solution: Refer to industry standard references for a reasonable and customary transit temperature setting.
QUESTION: We recently purchased a mixed load of red and white onions out of Southern Texas to be delivered to Jacksonville, FL for export to Puerto Rico. We tendered the load to a refrigerated carrier and instructed the carrier to refer to the bill of lading for transit temperatures. Unfortunately, the transit temperature instruction on the shipper’s bill of lading was left blank, and the carrier, rather than simply asking, decided not to run the reefer unit at all. Two days later, the load arrived with the red onions looking okay, but the white onions in poor condition. A U.S. Department of Agriculture (USDA) inspection of the white onions was called for and revealed pulp temps in the mid 70s, with 14 percent decay.
Our customer agreed to accept the red onions and we agreed (with the shipper’s approval) to place the distressed product with a wholesaler in Atlanta for the account of whomever it concerns. We are still awaiting returns, but our customer has issued a chargeback of $2,400 for lost container space on the trip to Puerto Rico. We have put both the truck and the shipper on notice. How would you suggest we assess losses and allocate responsibility in this situation?
ANSWER: Our Transportation Guidelines provide a partial answer to your question: “In the absence of a temperature instruction from the Hiring Party, Carriers are expected to maintain air temperatures as instructed on the bill of lading. In the absence of a temperature instruction on the bill of lading, conformity with the storage temperatures recommended by the USDA or other recognized industry sources may be considered customary and reasonable.” In other words, carriers are not excused from properly cooling fresh produce when no temperature instruction is provided. Per the USDA, onions are to be maintained at 45 to 60 degrees.
Consequently, the carrier’s failure to provide temperature control, in our view, represents a failure to use due care to protect the product in its possession. The fact that the red onions arrived without appreciable condition defects does not excuse the carrier for losses related to the product that was affected.
Although it certainly appears the white onions were not particularly strong at shipping point, it must be remembered that shippers only promise to provide product that will hold up in transit under normal transportation conditions. Because air temperatures were not normal in transit, the condition of the white onions in Jacksonville does not necessarily prove a breach by the shipper.
However, given the short duration of the trip to Jacksonville, it appears to us that these onions may not have been shipped in suitable shipping condition, and that the carrier aggravated the problem by not properly maintaining air temperatures in transit. Therefore, for mediation purposes, we would suggest the shipper and the carrier split losses 50/50 or thereabouts.
To assess the losses (or damages), we take the difference between the market value of this commodity (the white onions) in good condition in Puerto Rico at the time, and the salvage returns realized from the sale in Atlanta, provided these returns are properly documented and reflect a “prompt and proper” sales effort.
From the resulting figure, USDA inspection fees and any cartage expenses required to take the white onions to the salvaging firm in Atlanta would need to be added. Lastly, any cost savings realized from avoiding the trip to Puerto Rico would need to be deducted; but here, it sounds as though there may not have been any savings if, in fact, space in the container used to ship the red onions went unfilled.
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