Dog eat Dog mentality....

We as a Carrier (trucking company) , needed a contract from each and every customer (shipper). we had. .

How plain and simple can I make this?
If you're just an owner operator, running under a Broker or Trucking company, than you don't need the contract. That's between like I said above, the broker/trucking company and shipper.

 

It is NOT the law. There is nothing in the US code or the CFR's under Title 49 that legally require cargo insurance, unless you are operating under Common Carrier authority. Virtually all truckload freight moving on the highways these days is governed by the Carmack Amendment in the event of a cargo claim.

http://www.networkfob.com/pdfs/claimprimer.pdf

 

You just answered my words.. unless you are operating under Common Carrier Authority.

I'm not talking about Owner Operators running under a Broker or leased to a Trucking company. An owner operator does not need a contract . Except for whoever is dealing straight with the shipper does.
A Broker can carrying their own cargo insurance. Even though they have a contract with the shipper, the broker may want you to carry cargo insurance. Even though they're the ones that should be carrying it, since they have the contract. They work different ways, depending on what type of broker and authority they carry.

that Carmack Amendment is nothing... except trying to get around things when there is a claim on the freight hauled. You still need insurance!


Lets say you get into an accident and you roll the truck. The trailer busts apart and the freight is all over the road.
Who's responsible for that damage load? Who's pays for that damaged load?


Lets say you go to a shipper and say to them , let me haul your product!.
The first thing a shipper will want to see is your operating Authority.

When applying for Common Carrier Authority,,, you must have insurance.
Or you don't get your Authority.

Next the shipper will ask,, How much Cargo Insurance are you carrying? To cover this load of Shrimp?

"Ahhhhh" We don't have any.
Shipper says, " go stick it" " I'll find another Carrier."

You think a shipper will allow someone to move his product and not have any coverage for that freight? If there is a loss?

Many of times a shipper will not allow you to haul their product if you don't have enough cargo insurance to cover their product.

Unless you're hauling scrap,, it's worth nothing , therefore you don't need insurance coverage for that.

Go up to the top of the Owner Operators page and read the 2nd Thread down> "So you want to Own your own company," by NightWind.

 

And you are taking what I said out of context. It's Apples and Oranges. Cargo insurance is legally required when freight moves under a common carrier waybill and published tariffs. The carrier's cargo liability is limited to a fixed amount or a specified rate per pound. Doesn't apply to contract carrier freight.

The carrier is ultimately responsible. If he doesn't have cargo insurance the owner of the freight can go after his bank account(s) and other assets provided he first complies with the guidelines under the Carmack Amendment. If the damaged load was moving under a common carrier waybill, the freight owner can only collect the specified rate per pound, unless he purchased additional insurance from the carrier.

It's up to the shipper. Once again, cargo insurance for freight moving under contract authority is not legally required. We have a few small COD customers that required nothing but a standard uniform bill of lading. It is the shipper's responsibility to perform due diligence research for the brokers/carriers they decide to use. They would be negligent if they used carriers that did not have current authority and public liability insurance.

A very good thread. It doesn't apply to our discussion. I suggest you read my past posts on the differences between Contract and Commpn Authority.

Not looking for an argument here, Doubledear. You have brought up some good points. Just want to correct the things that are factually wrong.