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Certified Transportation Broker Course Unit Four Review

Certified Transportation Broker Course Unit Four Review. Transportation Intermediaries Association Prepared by James T. Kenny, Ph.D. John T. Drea, DBA. Function #2:

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Certified Transportation Broker Course Unit Four Review

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  1. Certified Transportation Broker CourseUnit Four Review Transportation Intermediaries Association Prepared by James T. Kenny, Ph.D. John T. Drea, DBA

  2. Function #2: A bill of lading serves as a receipt for the goods shipped. Without the bill of lading it would be difficult to determine carrier liability in case of loss. • Function #1: • A bill of lading serves as the contract of carriage. The carrier agrees to • Haul the goods from point A via the route indicated to the consignee’s address. • When the haul is not successfully completed, a breach of contract has occurred. CTB Objective 4.1 Define the elements of a bill of lading A bill of lading serves two functions It also provides evidence of the title to the goods!

  3. Reason 2: Shipper gets uniformly sized bills of lading. Reason 3: Lets shipper prepare bill of lading on computer. Reason 4: Reasons 1-3 result in lower clerical expenses. Reason 1: They can be preprinted. CTB Objective 4.1 Define the elements of a bill of lading Why do shippers normally provide the bill of lading?

  4. CTB Objective 4.1 Define the elements of a bill of lading Straight Bill of Lading: Can be a “long form or a short form” Order Bill of Lading: Used to make sure consignee makes good on the balance due in the purchase agreement. Uniform Export Bill of Lading: Used when a shipment requires an overland move, a water move, then an overland delivery. Types of bills of lading Livestock Bill of Lading: Used in rail transportation of cattle. Ocean Bill of Lading: Used in overseas trade by water transport. Air Bill of Lading: can be used in both terminal-to-terminal and door-to-door air freight moves. Government Bill of Lading: Used by govt. agencies and military.

  5. CTB Objective 4.1 Define the elements of a bill of lading • Shipper’s number • Shipper name/location/date • Consignee name/date/mailing address • Routing and/or carrier (the carrier and the interline route the shipper desires) • Vehicle number (for CL and TL shipments, it is the vehicle-owner code) • Number of packages, TL or CL (used for counting, control, loss/damage claims) • Description of articles, packaging, marks, or exceptions (exact article descriptions shown in tariffs. Any allowances/dunnage should also be noted here.) • Gross weight of the shipment • Rate (if known) • Name of traffic manager or person who prepared bill of lading. • Section 7 (the without recourse clause) • Prepayment (identifies who will pay the carrier for services rendered (either prepaid by the shipper, or collected from the consignee) • Released valuation (if applicable, the valuation per pound or per unit should be noted here.)

  6. Shipment Contract (FOB Origin) Seller retains title, bears costs/risks until goods are tendered to the carrier at the seller’s place of business. After delivery to the carrier, they buyer takes title and assumes all risks. Destination Contract (FOB Destination) Seller delivers goods to the buyer, but the title (and risks/costs) only passes to the buyer once the goods are delivered. CTB Objective 4.2 Describe the terms of sale

  7. Negotiation CTB Objective 4.3 List and discuss the elements of a transportation contract Suitable traffic that allows a shipper to define needs Competitive Bidding Procedures Adequate competition (more than two carriers) Sufficient time to prepare (often requires months) Unsatisfactory bid conditions (see above) Traffic uncertainty (need to know if a bid is justifiable) Significant change in carrier operations Available cost data is necessary to estimate the carrier’s costs and evaluate proposed rates

  8. Solicitation Administration Evaluation and Award Sourcing • How to screen potential partners? (operational and financial capability) • How many carriers? Notification • Invitation for bid? • Request for proposal? • Request for negotiation? • Performance • Changes • Termination • Renewal • Contingencies Background Research Opening • Responsive? • Price/cost criteria? Closing • Block in details • Legal preview • Preaward survey • What are my needs? • Why contract? • Competitive bid or negotiation? CTB Objective 4.4 Describe the steps in the contracting cycle

  9. Act of God A natural disaster that was not caused by humans and could not be prevented. Act of public enemy Acts by terrorists, hijackers, or rioters. Act of public authority Legal process used against owners to seize freight from the carrier, or govt. seizure of goods. Act of shipper If the load was improperly packaged/loaded by shipper. Fault of shipper must not be apparent through ordinary observation – if so, carrier should reject shipment. Inherent vice Factors such as natural defects, decay., or disease that cause deterioration over time. CTB Objective 4.5Describe the types of carrier and 3P liability Basis of liability

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