Household Goods Physical Surveys

Posted by David Piotrowski

Under the fairly new “Household Goods Mover Oversight Enforcement and Reform Act of 2005,” a physical “visual” survey is required prior to the mover loading the shipper’s goods onto the truck. The person conducting the household goods physical survey will be able to see first-hand what the shipper intends to move and can use that information to create a customized estimate for the shipper. This estimate must be in writing and must be signed and dated.

Many moving companies do not wish to give potential shipper’s a physical survey because of the time and cost involved in sending people to the jobsite to conduct in-person surveys. Physical surveys are costly because, under normal circumstances, most estimates do not become “booked” jobs. Also, conducting in-person household goods surveys is extremely time-consuming. Statistics show that only a small portion of leads turn into actual jobs.

As a result, many moving companies try to avoid the household goods physical survey requirement by finding an exception to the rule. These exceptions are legal and many legitimate moving companies utilize these exceptions to reduce cost and to be able to provide better overall services by utilizing available resources in other areas. Shippers should not feel uncomfortable simply because a moving company does not provide a physical survey, so long as an exception to the rule is used. One such exception is that a shipper may elect to waive a physical survey by signing a written agreement before the shipment is loaded. So long as the carrier obtains a signed waiver from the shipper before the carrier loads the goods, then the household goods physical survey requirement can be waived.

In addition, in order to fall under the requirement that household goods estimates must be based on an actual physical survey, the pick-up address must be within a 50-mile radius of the location of the carrier’s household goods agent preparing the estimate. So, if this location is greater than 50 miles from the pick-up address, the household goods physical survey requirement may be waived.

What can shippers do to protect themselves? Shippers may want to request a binding estimate and may want to insist on a physical survey. Shippers may want to obtain testimonials or references from the company and utilize other resources available. If the shipper is comfortable with the mover, then the shipper may decide it is ok to sign a waiver of the physical survey requirement. Note, however, that even if the physical survey requirement is waived, the shipper must still receive a written, signed, and dated estimate (whether binding or non-binding) from the carrier, prior to loading the shipment.

Define: FMCSA

Posted by David Piotrowski

The FMCSA, also known as the Federal Motor Carrier Safety Administration, was established as a division of the United States Department of Transportation (DOT) in 2000. The mission of the FMCSA is to “reduce crashes, injuries, and fatalities involving large trucks and buses.”

The FMCSA is headquartered in Washington, DC and employs more than 1,000 individuals, in all 50 States and the District of Columbia.

In carrying out its safety mandate to reduce crashes, injuries, and fatalities involving large trucks and buses, the FMCSA:

• Develops and enforces data-driven regulations that balance motor carrier (truck and bus companies) safety with industry efficiency;
• Harnesses safety information systems to focus on higher risk carriers in enforcing the safety regulations;
• Targets educational messages to carriers, commercial drivers, and the public; and
• Partners with stakeholders including Federal, State, and local enforcement agencies, the motor carrier industry, safety groups, and organized labor on efforts to reduce bus and truck-related crashes.

The FMCSA develops, maintains, and enforces Federal regulations that promote carrier safety, industry productivity, and new technologies. These regulations establish safe operating requirements for commercial vehicle drivers, carriers, vehicles, and vehicle equipment.

The FMCSA also regulates interstate household goods movers and requires them to register with the agency.

Additional information on the FMCSA can be obtained at www.fmcsa.dot.gov.

Moving Company Agents

Posted by David Piotrowski

What happens when a shipper receives an estimate from “Moving Company A” and then, to his or her surprise, “Moving Company B” shows up on the day of the move to load the goods onto “Moving Company B’s” truck? This is actually quite common in the moving industry and although possibly unnerving, is generally legal if certain requirements are met.

Moving Company Agents Comes as a Surprise to Many Shippers

Consider a shipper who is unfamiliar with the moving process. Perhaps this is the shipper’s first move or the first move in many years and the shipper is filled with trepidation and uncertainty. This particular customer had a friend who recently moved and her friend told her the horror that occurred during her move. The shipper, wanting to make sure that the horror story is not repeated, conducts extensive research on moving companies, checks the moving company’s background, history, claims, and complaints, and then decides to hire a particular mover. While not the cheapest estimate, this shipper feels that the price quoted coupled with the services offered and the moving company’s reputation is a nice balance. Up until the day prior to the move, the customer has been in communication with the moving company she has hired to perform her move. Then comes moving day. The truck and crew arrive at the customer’s house on time and as scheduled, however, the truck has a different moving company’s name on it! Frantic, the shipper contacts the moving company she hired for an explanation and considers cancelling the move because the customer thought she was hiring “Moving Company A” and not “Moving Company B.”

The Use of Moving Company Agents is Not Uncommon

The use of moving company agents is a common practice in the moving industry. Customers should not feel frightened if a different moving company is used for at least a portion of the move. This is especially true for long-distance moves. If not a different company on pickup, it is common for many movers to subcontract their jobs to other movers throughout the country. The reason for this is so that the goods can move quickly, efficiently, and cost-effectively. Often times, a mover will not have a truck available or may not be going to a certain area of the country. Movers have networks of agents throughout the country to assist in the transportation of goods.

In the above scenario, the right thing for “Moving Company A” to have done would have been to notify the shipper that the company may employ agents in the transportation of goods, and, when reasonably known, to notify the shipper of the name of the agent and to provide the shipper with the agents contact information as soon as this information is known to the company. This would reduce the fear and surprise or seeing “Moving Company B” when “Moving Company A” was expected.

Two Types of Moving Agents

Generally speaking, there are two (2) types of household goods moving agents. These are “prime agents” and “emergency / temporary agents.”

Prime agents provide transportation services for moving companies, including the selling of, or arranging for, a transportation service. Moving companies permit or require the agent to provide services under the terms of an agreement or arrangement with the carrier. A prime agent does not provide services on an emergency or temporary basis. A prime agent does not include a household goods broker or freight forwarder.

Emergency or temporary agents provide origin or destination services on the carrier’s behalf, excluding the selling of, or arranging for, a transportation service. Carrier’s permit or require the agent to provide such services under the terms of an agreement or arrangement with the carrier. The agent performs such services only on an emergency or temporary basis.

When is the Use of Moving Company Agents Legal?

The use of moving company agents is legal when the moving company has a written, signed agreement with the agent. The moving company should provide the shipper with the name and contact information of the agent as soon as the company receives this information. The agent must be licensed, insured, and adhere to all the rules and regulations governing interstate movers.

Define: Inventory

Posted by David Piotrowski

An Inventory is one of the required documents movers are required to provide to shippers. Inventory lists must be written and must be itemized and must list every carton and uncartoned item in the shipment. Each item in the shipment should have a unique number placed on it that corresponds with the numbers on the Inventory. This is for quality control purposes in order to match up goods that belong to each shipper. In many instances, a mover will have multiple shippers’ goods on a truck at any given time. Having unique numbers on each item that matches the numbers on the Inventory list helps ensure that the goods are not lost, misplaced, or given to the wrong person.

The Inventory list must be prepared prior to loading the goods onto the truck and movers must give shippers an opportunity to observe and verify its accuracy. The carrier should note any damaged items and the condition of the goods. The Inventory must be signed by both the shipper and the carrier and the mover must provide the shipper with a copy of the Inventory prior to loading the goods onto the movers’ equipment.

Upon delivery, the shipper has the opportunity to verify goods to make sure all the goods that were picked up are being delivered and that the goods are in substantially the same condition on delivery as they were on pickup. The shipper may, if they so desire, make notes on the Inventory indicating any missing or damaged articles before the movers leave.

Just as the Inventory was signed on pickup, it should also be signed on delivery.

Moving Estimates

Posted by David Piotrowski

Moving companies must provide shippers with an estimate in writing prior to issuing an order for service. (An order for service will be discussed at length in a later post.) Moving companies may, if their tariff allows, provide the shipper with either a binding estimate or a non-binding estimate. (Tariffs will be discussed at length in a later post.)

A binding estimate is an agreement made in advance between the shipper and the carrier, outlining the charges for the moving services. A binding estimate guarantees the total cost of the move based upon the quantities and services shown on the binding estimate. For example, if a carrier provides a shipper with a binding estimate for $1,000 to ship 100 cubic feet from Arizona to Utah, then the carrier cannot collect from the shipper anything over $1,000 to ship that 100 cubic feet from Arizona to Utah.

A non-binding estimate can be based on either weight or volume (cubic feet) and is a carrier’s reasonable estimate on what the cost will be based upon the estimated weight or volume and any extra services requested. A non-binding estimate is not binding on the carrier and a shipper may end up paying more than the amount in the non-binding estimate. The final charges will be based on the actual weight or volume of the shipment. Actual weight is usually determined by a weight ticket when the carrier drives through a weight station. The carrier will weigh the truck prior to loading the goods and then again after the goods are loaded. The carrier will subtract the two (2) numbers to arrive at the actual weight of the shipment.

All moving estimates, whether binding or non-binding, must specify the form of payment that will be accepted at delivery and must list charges for accessorial services such as elevators or long carries. If no accessorial services are listed, then the goods must be delivered but the carrier cannot demand payment for such services until thirty (30) days after delivery.

All moving estimates must be signed and dated by both the carrier and the shipper and a copy should be given to each.

Moving estimates may be amended upon the mutual consent of both the carrier and the shipper prior to loading the shipment.

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