TRANSPORT SECURITY BLOG

Claims Prevention: The Importance of the Seal

September 19th, 2008

By: John Spiros,VP Safety and Claims Management Roehl Transport Inc.

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A seal can make the difference between a claim and no claim. Seals and the correct documentation can prevent most claims. Shortages, Mis-shipments, and Damage claims are the most common and can be reduced or prevented with seal and the correct seal documentation by supporting the carrier in arguments against theft and damage. In the case of a shortage if the load was sealed the entire time the carrier was in possession of it then there is no way that the carrier can be responsible for the shortage. The same is the case with mis-shipments; the carrier or someone else is not able to tamper with the load if it is sealed the entire time. The seal can protect the carrier in the event of loading damage claims as well. The seal process is a simple 4 step process and if done for every load can prevent many claims.

Step 1: Seal the load at the shipper
If the load is a live load, have the shipper seal the load once they have completed loading the trailer, preferably with a Shipper seal. If the shipper refuses or does not provide seals than the driver should seal the load with a company seal. For preloaded trailers the driver should verify if the load is sealed upon pickup, if it is proceed to step two. If the load is not sealed then the driver should inspect the load for proper securement and seal the load with a company seal.

Step 2: Document the seal on the Bill of Lading
Have the shipper document the seal number on the Bill of Lading. If the shipper refuses or in the case of a pre-loaded trailer is not available, then the driver should note the seal number on the bill of lading.

Step 3: Have the Consignee document the seal as being intact
This is the most crucial step, besides actually sealing the trailer. The driver should request that the consignee inspect the seal and document that the seal was “intact upon arrival” on the bill of lading before breaking the seal. Some consignees will not even look at the seal and request the driver break the seal. In cases such as this the driver should note on the bill of lading, in the same area where the seal number was documented originally, that the seal was intact upon arrival and the “consignee refused to sign”. The driver should initial the bill of lading in the same area to indicate that he signed for the seal documentation.

Step 4: Break the seal
The final step is to break the seal.

Multiple Stop Loads:
Treat each stop as a separate load in reference to seals. Repeat the entire seal process for each stop on a multiple stop load to realize the full protect against claims that seals can provide.

Seals and the correct documentation are the simplest way to prevent most types of claims. In summary make sure that the seal number is on the paperwork when picking up the load and is verified by the consignee upon delivery. The driver should always get initials or a signature and make sure that the BOL is noted “seal intact”. The shipper contract should also be reviewed regarding their requirements and this information should be supplied to the driver prior to them picking up or delivering a load. This gives the driver all the required information to understand their responsibilities regarding a particular customer. Once again, do not break any seal unless an authorized employee of the consignee gives the driver the oaky. This process is quick, simple, and can be done for all van/refrigerated loads minimizing the amount of claims received.

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