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Roseburg Freight and Customer Arranged Shipping Policies

1. Freight Claim Policy

General

Terms of Sale for all Roseburg Forest Products (RFP) goods is free on board (FOB) origin. According to §2-319 and §2-504 of the Uniform Commercial Code (UCC), if a shipment is FOB origin, title to the goods and risk of loss or damage in transit passes to the Buyer ("Customer") at the time RFP places the goods in the possession of a carrier. This means the Customer legally owns the goods and is obligated to pay RFP its full invoice price once the goods are in the carrier's possession.

RFP often ships goods "freight prepaid." This does not change the FOB point, ownership, or risk of loss or damage. The Customer is still the owner of the goods once they are in the carrier's possession and has the responsibility to file claims with the carrier if the goods are lost or damaged in transit. The Customer may not deduct claims from moneys due RFP.

Carrier Liability

Whether shipments are moving on a bill of lading or subject to a contract between RFP and the carrier, the same rules governing carrier liability apply. Carrier liability is governed by the Interstate Commerce Act, 49 USC §14706 for trucks and 49 USC§11706 for rail.

The carrier is liable for the actual loss or damage to the goods that occurs in transit, unless it can prove the loss or damage was due to certain events outside the control of the carrier and also prove it was not negligent.

The carrier is not liable for special damages such as loss of sale, change in market price, or lost production; but is liable for costs in mitigating damages.

Claimant Responsibilities

The claimant is required to show that the shipment was in good condition at origin and short or damaged at the time of delivery. This makes it critical that the recommended procedures below are followed if the Customer hopes to collect on a cargo claim. A shipment cannot be refused because of damage. The Customer is required to accept the shipment and do whatever is necessary to minimize the damages.

Never make a statement to a carrier that the goods were improperly loaded. The carrier will automatically deny the claim if such statements are made. RFP loads railcars in accordance with loading rules and guidelines as published by the Association of American Railroads (AAR), and the railroads regularly inspect RFP loads to ensure compliance. If RFP loads a truck, it is in accordance with industry standards. The trucker is responsible for ensuring the load is secure and safe whether loaded by RFP or the trucker.

Recommended Procedures

As a service to our customers, RFP will assist with the claims process if these procedures are followed.

  1. Immediately stop unloading if you see any damage or load displacement.
    1. If carrier is a truck, advise the driver and ensure he/she makes a detailed notation of the damage on the delivery document. Notify the trucking company and offer them the opportunity to inspect the damage. Make note of the date, time, and full name of the person with whom you speak. Also, make note if they decline to inspect or agree to do an inspection at a later date. 
    2. If rail, notify the rail company and offer them the opportunity to inspect the damage. Make note of the date, time, and full name of the person with whom you speak and note if they decline to make an inspection. Save the air bag if it is collapsed or damaged.
  2. Take photographs of the goods while they are still in place inside the railcar or truck. Ideally, take these photographs with a color digital camera that can record the time and date on the photograph.
    1. Take close-ups of the damage and some wider angle shots that provide an overall frame of reference. 
    2. Take a photograph that identifies the railcar or truck on which damage occurred.
      1. If it is a railcar, make a sign indicating the car number and ensure you take a picture with the load damage and the sign in the same photo. 
      2. If it is a truck, take a picture of the carrier information as shown on the truck door if possible.
  3. Complete unloading the entire shipment, sorting the damaged goods from the undamaged.
  4. Notify your RFP Sales representative.
  5. Complete the Freight Claim Form. (Copies are available on the RFP website.)
    1. Make a claim for the value of the damaged or missing goods. Attach a copy of the RFP invoice to substantiate the amount.
    2. Describe the damage in detail. Include pictures, copies of delivery documents with the damage notation, and the record of telephone calls made to the carrier.
    3. You should also document your expenses directly attributable to the damage, such as the costs of sorting and segregating damaged product and taking photographs. Include time and expense.
  6. Forward a copy of your claim to the RFP Traffic Department as soon as possible. If you have followed these procedures, RFP will help you with your attempts to recover your costs from the carrier. Also, remember your invoice to RFP must be paid in full.


2. Customer Arranged Shipping Policy

Roseburg Forest Products (RFP) allows customers to arrange truck shipping of product orders at customer expense. However, if the customer’s carrier has not picked up the order within three (3) business days after notification of called ready, then RFP reserves the right to arrange shipping, ship the product to the customer, and bill the customer for the actual RFP freight cost.

 

 
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