Rights & Responsibilities
Applicable to Interstate Household Goods Shipments
Notice to Shippers: This document serves as the formal notification of rights and responsibilities as required by the Federal Motor Carrier Safety Administration (FMCSA). Next Phase Moving (hereinafter "Carrier") operates under the authority granted by the United States Department of Transportation (USDOT #4454165).
The relationship between the Carrier and the individual shipper (hereinafter "Shipper") is governed by the Bill of Lading, the Order for Service, and the applicable Tariffs published by the Carrier. In the event of a conflict between this summary and federal regulations (49 CFR Part 375), federal regulations shall prevail.
1. Statutory Definitions
Accessorial Services: Services performed by the Carrier in addition to the transportation of household goods, including but not limited to: packing, unpacking, appliance servicing, disassembly, reassembly, and shuttle services.
Bill of Lading (BOL): The contract between the Shipper and the Carrier. It acts as a receipt for your goods and the agreement for their transportation.
Order for Service: A document authorizing the Carrier to transport your household goods, which must be signed prior to the shipment being loaded.
Tariff: The Carrier's issuance of rates, rules, and practices. Next Phase Moving maintains a published tariff available for inspection at its principal place of business.
2. Estimates & Surveys
Pursuant to 49 CFR 375.401, the Carrier must provide a written estimate of total charges. The Shipper has the right to select between two types of estimates:
A. Binding Estimate: This agreement guarantees the total cost of the move based upon the quantities and services listed on the estimate. The Carrier may not charge more than the binding estimate amount at delivery, provided no additional services were requested by the Shipper after the contract was executed.
B. Non-Binding Estimate: This is an approximation of cost based on the estimated weight of the shipment and the accessorial services requested. The final cost will be based on the actual weight of the shipment and the actual services performed. Under a non-binding estimate, the Carrier cannot require the Shipper to pay more than 110% of the original estimate at the time of delivery (see Section 5).
*Note: A physical survey of goods is required for all shipments originating within a 50-mile radius of the Carrier's terminal unless waived in writing by the Shipper.
3. Valuation & Carrier Liability
Federal law requires the Carrier to offer two levels of liability coverage. This is not insurance, but rather a determination of the Carrier's financial responsibility for loss or damage.
Option 1: Full Value Protection
The Default Option
Under this option, the Carrier is liable for the replacement value of lost or damaged goods. If an article is lost, destroyed, or damaged while in the Carrier's custody, the Carrier will, at its discretion, either:
- Repair the item to its pre-move condition.
- Replace the item with a like-kind substitute.
- Pay the cost of repair or replacement.
Subject to deductibles as selected by the Shipper.
Option 2: Released Value
Minimal Protection
This is the most economical option, offered at no additional charge. However, the Carrier's liability is strictly limited to 60 cents per pound per article.
Example: If a 10-pound stereo valued at $1,000 is lost or destroyed, the Carrier would be liable for only $6.00 (10 lbs x $0.60).
Shipper must specifically sign the Bill of Lading to select this option.
High Value Articles: The Carrier is not liable for the loss or damage of items of extraordinary value (defined as items valued in excess of $100 per pound), such as jewelry, silverware, china, furs, or documents, unless they are specifically listed on a separate "High Value Inventory Form" prior to the move.
4. Pickup & Delivery
The Carrier is obligated to transport the shipment with reasonable dispatch. Dates listed on the Order for Service and Bill of Lading regarding pickup and delivery are agreed-upon windows, not absolute guarantees, unless an "Agreed Delivery Date" premium service has been purchased.
In the event of a delay, the Carrier must notify the Shipper as soon as it becomes apparent that the dates cannot be met. The Carrier may deliver the shipment to a storage facility in the event the Shipper is unable to accept delivery at the agreed-upon time, at the Shipper's expense.
5. Payment & The 110% Rule
Payment is due before the Carrier unloads the shipment at the destination, unless credit arrangements were made prior to pickup.
The 110% Rule (Non-Binding Estimates): If the actual charges exceed a non-binding estimate, the Carrier must relinquish possession of the shipment upon payment of 110% of the estimated charges. The Carrier must then bill the Shipper for the remaining balance after 30 days. This rule protects the consumer from being held hostage for exorbitant overages at the time of delivery.
For Binding Estimates, the exact amount of the estimate is due at delivery, plus charges for any post-contract services requested by the Shipper.
6. Claims & Arbitration
Filing a Claim: Claims for loss, damage, or delay must be filed in writing. By law, the Shipper has nine (9) months from the date of delivery (or the date delivery should have occurred) to file a claim. Next Phase Moving will acknowledge receipt of the claim within 30 days and pay, decline, or make a firm compromise settlement offer within 120 days of receipt of the claim.
Arbitration Program: Pursuant to 49 USC 14708, the Carrier participates in a neutral arbitration program designed to resolve disputes concerning loss and damage claims or disputes regarding charges. This program is available for claims of up to $10,000. For claims exceeding $10,000, the dispute may be submitted to arbitration only if both the Carrier and Shipper agree.
7. Impracticable Operations
Nothing in this agreement requires the Carrier to perform pickup or delivery at any location from or to which it is impracticable to operate vehicles because of:
- The condition of roads, streets, driveways, alleys, or approaches thereto.
- Inadequate loading or unloading facilities.
- Riots, acts of God, the public enemy, the authority of law, the existence of a strike, or riots/disturbances.
If the Carrier is unable to utilize its normal equipment for pickup or delivery due to physical constraints (e.g., narrow roads, low bridges), "Shuttle Service" (use of a smaller vehicle) may be required. Charges for Shuttle Service are in addition to the line-haul charges.
End of Document
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