Pezold, Smith, Hirschmann & Selvaggio, LLC
formerly known as Augello, Pezold & Hirschmann, P.C.
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Pezold, Smith, Hirschmann & Selvaggio, LLC formerly known as Augello, Pezold & Hirschmann, P.C.
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Areas of Practice
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Q & A Samples | |||||
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Transportation Law
Contracts for Transportation and Logistics Services
Do you currently have a contract for your transportation and logistics services? If not, you probably should. For the better part of the 20th Century, the transportation industry was highly regulated and there was little or no need for shippers and carriers to enter into formal contracts with each other. That has all changed now. As a result of legislative initiatives, the transportation industry has entered an era that is virtually free of government regulation. Without regulations and government oversight, shippers and carriers must look out for themselves. The best way to protect your interests in a transaction involving transportation services, like any other business transaction, is through a contract.
Even if you currently have a contract, many of the provisions may be outdated given the extensive changes in the law. To fully protect yourself, it would be wise to have an experienced professional review and critique your existing transportation contracts.
Motor Carrier Contracts
Many
legislative and regulatory changes were enacted affecting motor carrier
transportation in 1993, 1994, and 1995, culminating with the sunsetting
of the ICC. Regulations governing motor carrier contracts were
eliminated, and the ICC Termination Act ("ICCTA") eliminated
the statutory distinction between "common" and
"contract" carriage.
As
a result of the changes brought about by ICCTA, all motor carriers are
now essentially considered common carriers with the right to enter into
contracts with individual shippers. This makes it imperative to examine
contractual arrangements for compliance with current laws, regulations
and practices. Also, doing business in a "deregulated
environment", without the ICC's regulatory oversight makes it
highly advisable to put contracts into place where none existed before.
Our
firm has assisted hundreds of shippers and third party logistics
providers in preparing and negotiating transportation agreements.
These contracts are drafted with the provisions that we feel are
necessary to clearly define the services to be provided, the duties and
obligations or the parties, and to protect the interests of the client.
Our shipper-carrier contracts address the key issues and potential problem areas of the shipper-carrier relationship, such as rates and charges, rules and tariffs, cargo liability, insurance, indemnity provisions, etc. Contracts are tailored for your particular transportation needs and can then be submitted to the carriers with whom you do business. A shipper-oriented contract will help to protect your company against unilateral increases in rates and "surprise" charges, as well as unrecoverable transit losses and costly disputes.
Agreements for other modes:
In
addition to motor carrier agreements, we can assist you with contracts
for parcel/express, rail, air, ocean and multimodal transportation.
Service
provider agreements:
We
also prepare and negotiate contracts and agreements for motor carriers,
freight forwarders, brokers, shipper's agents, freight bill audit and
payment companies, and other logistics service providers. Again,
these agreements are tailored for the specific services involved and
designed to protect the interests of the client.
Contract
review and critique:
Upon
request, we are available to review and critique your existing or
proposed contracts. Our charge for such services is reasonably priced.
For
information:
For information on the services available in this area and an estimate of the legal fees, please contact either Raymond Selvaggio or George Pezold at (631) 427-0100 or by e-mail at pshs@transportlaw.com.
Loss and Damage - Cargo Claims
Carrier liability for loss or damage involves the interaction of federal and state laws and regulations (and often international treaties), contracts of carriage, bills of lading and tariffs. Different liability laws and rules apply to truck, rail, air, ocean and multimodal transportation. We are experienced with all aspects of filing and collecting cargo claims.
It is unlawful for motor carriers, freight forwarders or transportation brokers to operate in interstate commerce without authority from the the Federal Motor Carrier Safety Administration. Carriers, forwarders and brokers must also comply with federal regulations dealing with financial security, insurance, bonds, safety and hazardous materials. Many states also require intrastate carriers to obtain operating authority for property and passengers.
Many types of insurance products are available for shippers, carriers, forwarders, brokers and 3rd party logistics providers. Motor carrier cargo legal liability, ocean marine, inland marine, warehouse, and broker contingent cargo insurance policies must be carefully reviewed to see if they adequately cover the risks that may be anticipated.
Disputes between shippers, consignees, intermediaries and carriers often involve legal issues as to who is liable for freight charges, especially when one of the parties become bankrupt or goes out of business. Overcharges, undercharges, surcharges and accessorial charges are another common area of conflict and litigation.
The bill of lading is a basic contract of carriage, and its use has many legal consequences. Carrier-prepared bills of lading usually incorporate terms and conditions from the carrier's service guide or tariffs. Shippers can prepare their own bills of lading or other shipping documents that avoid incorporation of tariff provisions.
Ocean Carrier Service Contracts; NVOCC Service Arrangements
With the growth of international trade, many importers and exporters are learning how to negotiate Service Contracts with ocean carriers or NVOCC Service Arrangements. Although these are "confidential" agreements, they are still subject to FMC regulations, including publication and filing of the "essential terms".
Outsourcing transportation, warehousing and distribution functions can take advantage of the expertise offered by a good 3rd party logistics provider. In addition to care in the selection of a 3PL, contractual agreements must define duties and responsibilities of the parties, rates and charges for the various services, and provide for dispute resolution.
Freight Audit and Payment Services
Many shippers use freight audit and payment services as a convenient and efficient way to handle their freight charges. What precautions and safeguards should be taken to avoid potential problems, such as "double payment" liability if the freight payment service should go out of business or file bankruptcy without paying the carriers?
Freight Brokers and Other Intermediaries
Freight brokers play an important role as intermediaries in arranging transportation between truckers and shippers. What should shippers (and carriers) expect from brokers? What are a broker's obligations if there is loss or damage to cargo, or if the shipper fails to pay the broker?
Many manufacturers and distributors are turning to third-party vendors to handle their warehousing and distribution needs. Contracts for receiving, storing, packing, consolidation, shipping, and ancillary services such as inventory management and management reporting, must carefully specify the functions to be provided and the responsibility of the parties.
Members of the firm have published texts and articles, and have lectured and conducted seminars on transportation subjects for many years. We can provide in-house seminars or workshops tailored for the educational needs of your transportation and logistics personnel.
The sale or purchase of residential or commercial real property requries careful contract drafting and due diligence. Often title objections, zoning compliance and environmental problems arise that require special legal expertise.
A properly drafted will not only ensures that your estate will be disposed of in accordance with your wishes, but can help minimize federal and state estate taxes. Trusts can be established to provide for minor children, education for grandchildren, persons with serious disabilities or other purposes.
Probating a will does not have to be expensive; our firm charges hourly rates and not a percentage of the estate. Administration includes marshalling and liquidation of assets, payment of debt and taxes, and distribution to beneficiaries in accordance with the testator's plan.
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