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Rules And Special Service Charges (ABF 111-Z )
Effective: 02/04/2008  | Inquiry: 08/20/2008

Item 780-1 : Liability Limitations

(Subject to Notes 1, 2 & 3)

Part A:  Cargo Loss & Damage Claims

ABF will assume liability for cargo loss and damage claims under the federal laws applicable to common carriage in effect on the date of the shipment and the terms and conditions of the Uniform Straight Bill of Lading (ABF International Bill of Lading, the applicable Canadian Bill of Lading or Mexican law when applicable), except as shown herein, or to the extent otherwise specifically outlined in participating tariffs. ABF's liability for cargo loss and damage begins upon signing the receipt or bill of lading for property it receives for transportation.

ABF will investigate and dispose of cargo loss and damage claims under common carrier provisions as set forth in 49 C.F.R. Part 370, and STB NMF 100 Series, Items 300100 through 300155. Any and all cargo claims must be filed against ABF within nine months after the delivery of the property (or, in the case of export traffic, within nine months after delivery at the port of export), except that claims for failure to make delivery must be filed within nine months after a reasonable time for delivery has elapsed.  When claims are not filed within the prescribed time limits such claims shall be barred and not paid. 

Any lawsuits for cargo claims shall be instituted against ABF no later than two years and one day from the day when written notice is given by ABF to the claimant that it has disallowed the claim or any part or parts of the claim specified in such notice.  Where claims are not filed or lawsuits instituted thereon in accordance with the foregoing provisions, ABF shall not be liable and such cargo claims will not be paid.

Section 1 - Liability Limitations

Except as otherwise specifically provided herein, or modified to the extent specifically outlined the participating tariffs, in the event of loss of and/or damage to any shipment, ABF's liability will not exceed the lesser of:

  1. the actual value of the article(s) 
  2. the lowest released value provided in ABF 100 Series or in STB NMF 100 Series (Note 3)
  3. $25.00 per pound per lost or damaged package
  4. $100,000 per shipment
  5. any general statutory or regulatory domestic or international cargo liability limitations

Section 2 - Optional Excess Liability Coverage

Except to the extent otherwise outlined in subsequent Sections herein, or to the extent otherwise specifically outlined in participating tariffs, Shipper may request ABF liability coverage in excess of $25 per pound per package (or $100,000 per shipment, whichever is lower), by indicating in writing in the section or box designated "Kind of Package, Description of Articles, Special Marks and Exceptions," or some similarly marked area on the bill of lading, at time of shipment the total dollar amount of excess coverage requested (See EXAMPLE). Excess coverage will be applied on a per pound per package basis. The maximum excess liability is $1,750,000 per shipment, for a total of $1,850,000 when added to the initial maximum coverage. However, excess liability coverage will not apply on:

  1. Articles specifically named in Section 1 of Item 780 herein.
  2. Articles with a stated value on the bill of lading at time of shipment that exceeds the applicable released value of the articles as provided in ABF 100 Series or in STB NMF 100 Series. This includes all articles in the ABF 100 Series or in STB NMF 100 Series with a capped or closed end value that specifically limits the maximum value available. 
  3. Articles named in ABF 100 Series or in STB NMF 100 Series that provide a class specifically at released or declared value higher than $25 per pound.
  4. Any amount that exceeds the actual value of the goods.

ABF will assess an additional charge of $0.85 per each $100 value in excess of the initial maximum liability, subject to minimum excess coverage charge of $43.20. Such charge is in addition to all other lawful freight charges. Charges are to be paid by the party responsible for payment of the otherwise applicable freight charges.

EXAMPLE: Shipper requesting $10,000 additional excess coverage would enter on the bill of lading as follows:

"$10,000 excess liability coverage requested"

- or -

"Excess liability coverage requested: $10,000."

Note: A statement of value without an express request for excess liability coverage will not increase ABF's liability, and charges for excess liability coverage will not be assessed.

Section 3 - Liability--Other Than New Commodities

All commodities other than new, when accepted and transported by ABF, will be subject to a maximum liability of $0.10 per pound per lost or damaged package unless the shipper has requested excess liability coverage, as provided in Section 2 herein. The maximum liability assumed by ABF will not exceed $5.00 per pound per lost or damaged package.

In order to be eligible for excess liability coverage, a shipment containing commodities other than new must be packaged so as to meet the minimum packaging requirements as provided for that commodity or commodities in the NMFC 100 Series.

Failure of the shipper to declare that a commodity is "other than new" shall not alter the application of this item.

Section 4 - Volume Price Quote Liability

ABF's liability for loss of and/or damages to Volume Price Quote shipments, as further defined in Items 597 and 597-1, will be governed by the terms of the Volume Price Quote, not to exceed the actual value of the cargo. In cases where ABF's liability is not established by the terms of the Volume Price Quote, ABF's liability will not exceed the lesser of:

A) $1.25 per pound per lost or damaged package.
B) $0.10 per pound per lost or damaged package for any items that are not new
C) The actual value of the cargo

Optional Excess Liability Coverage is available upon request at the time of the quote, and as provided in Section 2 herein.

Section 5 - Canadian Liability

Except to the extent further restricted in Sections herein, shipments originating from Canada that are accepted and transported by ABF will be subject to the following:

In the event of loss of and/or damage to any shipment, ABF's liability will not exceed $2.00 Canadian per pound computed on the total weight of the lost or damaged goods tendered by the shipper, unless the shipper has requested excess liability coverage and has indicated the amount of excess liability coverage on the original bill of lading in the manner defined in Section 2 herein.

A statement of value without an express request for excess liability coverage will not increase ABF's liability, and charges for excess liability coverage will not be assessed.

When the shipper requests a specific amount of excess liability coverage on the original bill of lading, ABF will assess a charge of $0.85 per each $100 in excess of the initial maximum liability of $2.00 Canadian per pound for weight of shipment, subject to a minimum $43.20, in addition to all other charges. See example in Section 2 herein. Unless specifically requested in Canadian dollars, charges and excess liability limits will be based on U.S. dollar amounts. When requested in Canadian dollars, limits and subsequent fees in this section will be calculated in Canadian dollars.

Section 6 - Mexican Liability

When through service by ABF is available from or to a point in Mexico and the shipper requests such service, in the event of loss of and/or damage to any shipment during the portion of the transportation within Mexico, ABF's liability will not exceed $0.50 per pound per lost or damaged package, unless the shipper has requested excess liability coverage. Failure of the shipper to request or reject cargo protection shall limit liability to a maximum of $0.50 per pound per lost or damaged package. Shippers requesting cargo protection in Mexico with an invoice or declared value noted on the shipper's original bill of lading that exceeds $0.50 per pound, when accepted and transported by ABF, will be assessed a charge equal to 1% of the valuation in excess of $0.50 per pound in addition to all other charges. This additional coverage carries a 15% deductible with a maximum liability of $100,000 per shipment.

ABF assumes no liability on the Mexico portion of the transportation on shipments of fresh fruits, plants, flowers, explosives, and corrosive chemicals.

Section 7 - TimeKeeper® Liability

Except as otherwise specifically provided, ABF's liability for TimeKeeper shipments will be limited by the provisions outlined in the Sections herein.

However, in cases where a TimeKeeper shipment shall not move entirely within ABF's own shipping network to achieve the requested service, ABF's liability shall be limited to $0.50 per pound per lost or damaged package.

In addition, commodities subject to one or more released or actual value provisions as published in NMF 100 Series or ABF 100 Series for any specific commodity tendered for transportation shall be released to the lowest released value or the lowest actual value provided therein, not to exceed the limitations provided herein.

Optional Excess Liability Coverage is available, subject to maximum excess liability limits provided in ABF 610 Series, Item 780-1, and must be requested in the manner required in Section 2 herein.

Section 8 - FreightValue® Price Quote Liability

FreightValue's liability for loss of and/or damages to FreightValue Price Quote shipments will be governed by the terms of the FreightValue Price Quote, not to exceed the actual value of the cargo. In cases where FreightValue's liability is not established by the terms of the FreightValue Price Quote, FreightValue's liability will not exceed the lesser of:

A) $5.00 per pound per lost or damaged package
B) $0.10 per pound per lost or damaged package for any items that are not new
C) $100,000 per shipment
D) The actual value of the cargo

Optional Excess Liability Coverage is only available as provided in Section 2 herein; however, excess liability coverage is only available when it is requested, documented, and approved at the time of the quote.

Section 9 - Discounted Rate Quote Liability

ABF's liability for loss of and/or damages to a shipment moving under a Discounted Rate Quote will be governed by the terms of the Discounted Rate Quote, not to exceed the actual value of the cargo. In cases where ABF's liability is not established by the terms of the Discounted Rate Quote, ABF's liability will not exceed the lesser of:

A)   $1.00 per pound per lost or damaged package
B)   $0.10 per pound per lost or damaged package for any items that are not new
C)   $10,000 per shipment
D)   The actual value of the cargo

Optional Excess Liability Coverage is available as provided in Section 2 herein.

Section 10 - TurnKey Liability

ABF's liability for loss of and/or damages to a shipment moving under ABF TurnKey service will be limited by the provisions outlined in Sections herein, except that ABF's liability will be further limited to the lesser of $5.00 per pound per lost or damaged package, or $50,000 per shipment, unless the shipper has requested excess liability coverage, as provided in Section 2 herein.  However, excess liability cannot exceed $25.00 per pound per lost or damaged package.

Note 1 - The term "package," as used in this item, means any primary shipping package authorized by the provisions of individual tariffs or classification items. When a number of packages have been unitized, strapped or otherwise fastened together, or contained on pallets, platforms or skids, or have been overpacked in an additional complying package, ABF's liability will be determined by separately multiplying the weight of each individual package lost or damaged "times" the applicable per pound per package liability as set forth herein and not on the basis of the weight of the total number of packages unitized, strapped or otherwise fastened together or contained on pallets, platforms or skids, or overpacked in an additional complying package.

Note 2 - The provisions of this item will also apply on export or import shipments.

Note 3 - Where the shipper fails to notate a released value on the original bill of lading and an article(s) is rated at the class provided for the lowest released value, as required by Item 420 of ABF 111 Series, ABF's liability may not exceed the value resulting from such released value, subject to all other liability limitations herein.

Part B:  Incidental or Consequential Damages

ABF SHALL NOT BE LIABLE, AND HEREBY DISCLAIMS RESPONSIBILITY, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL PUNITIVE, OR MULTIPLIED DAMAGES OR OTHER INDIRECT COSTS, LOST PROFITS, FEES, OR CHARGES OF ANY KIND ARISING FROM ANY FREIGHT CLAIMS FILED HEREUNDER OR ANY OTHER ACTS, INCLUDING DELAYS OR OMISSIONS OF ABF, WHETHER FORESEEABLE, DISCLOSED OR NOT.

 
ABF 111-Z, Item 780-1

Indemnification (Item 568)
Liftgate Service (Item 758)
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