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In the first journal, we discussed the meaning and definition of direct physical loss or damage as it pertains to inland transit insurance and what were considered to be property risks which fell under this definition. In the second journal we investigated the liabilities associated with the carriage of non-owned property by truckmen along with their duties and obligations.

We would now like to turn our attention to a group of intermediaries who do not own the cargo they are assisting in moving nor do they own trucks (generally) that move the cargo. These Shipping Agents are known as Transportation or Load Brokers.

The shipping agent never comes into physical possession of or contact with the cargo. Confusion sometimes arises with Load Brokers in that while not taking possession of the cargo they may issue a bill of lading and sometimes describe themselves as carriers, which of course they are not. The shipping agent is an entity who services are obtained for the purpose of assisting in the transportation of cargo. The Load Broker is the facilitator between the shipper of cargo and the trucker who will move the cargo.

As John MacNeil points out in his text Motor Carrier Cargo Claims "The shipping agent who holds himself out as a carrier, and who attends to the payment of the freight charges levied by the carrier he engages on his own account, runs the risk of being found to be in fact a freight forwarder…A careful enquiry into the precise nature of the agent's undertaking is required to ascertain, if, by his conduct, his representations, or his contact, he has assumed the character of, and thus, the liability of, a freight forwarder."

Therefore, it is critically important that prior to the shipping agent going into business it is perfectly clear in their mind which intermediary function they wish to fulfill as attendant legal obligations are tied to each of the functions.

The Mariner's Smile

Kids Say the Darndest Things…At the beginning of a children's sermon, a little girl came up to the alter wearing a beautiful dress. As the children were sitting down around the pastor, he leaned over and said to the girl, "That is a very pretty dress. Is it your Easter dress?" The little girl replied almost directly into the pastor's clip-on mike, "Yes, and my mom says it's a bitch to iron."

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Peter J. Taylor, President. Underwriters and Intermediaries in Ocean and Air Cargo, Inland Transit, Transit Liabilities, Marine Liabilities, Commercial Hull, Yachts and Hovercraft.

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