WhoPaysTheFreight” A shipper is primarily liable to pay freight charges on goods shipped, whether or not it is the owner of the goods, and even where there is an express term in the bill of lading that the consignee is liable for the freight.”

Applying this well-established general legal principle, Canadian, American, and English courts have held shippers liable for freight charges in a remarkable variety of circumstances. But is the shippers’ liability to pay freight charges absolute? Can the shipper escape liability and, if so, how?

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Do Your Homework!

June 4, 2009

Careful planning and preparation should be an unassailable part of any supply chain initiative. But these days it’s surprisingly—and distressingly—rare. We’re mired in the middle of the worst recession in decades, and everyone’s facing pressure to do something, anything, to make the situation better. As panic creeps in, so too does the temptation adopt quick-fix solutions without reading the fine print.

Click HERE to read the complete article.

But as anyone who’s been burned by a rushed supply chain decision will tell you, the perils of slapdash solutions are many. This economic climate is none too forgiving of hastily made mistakes (and the people that make them) that might have been easily reversed in more prosperous times.

The late humourist Will Rogers got it (mostly) right when he declared: “The minute you read something and you can’t understand it, you can almost be sure that it was drawn up by a lawyer…..” This article explores the language of contracts.

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Do your due diligence Protect your supply chain from liability
MM&D | March 2009 21

“Have you seen a man diligent in his business? He will stand before kings.”
(Proverbs 22:29)

In our uncertain and challenging environment, mitigating risk is all about being diligent. This, according to Black’s Law Dictionary, means you have to be “attentive and persistent in doing a thing; steadily applied; active; sedulous; laborious; unremitting; untiring.”

Let’s move away from legal texts and talk about what diligence means in your day-to-day business. Shippers are increasingly exposed to risk. As supply chains are outsourced and spread across the world, more opportunities for problems emerge. These problems can create costly litigation and legal liability—which can threaten the very survival of many companies.

Reference: Marvin J. Huberman, “Legal Link: Do your due diligence” – MM&D, Materials Management & Distribution, Canada’s Supply Chain Magazine, March 2009, p.21;

Click HERE to read the complete article.