'K' Line, Union Pacific beat the rap on inland liability

THE US Supreme Court has dismissed a claim that domestic shipping law covers liability for damages to international intermodal shipments moving inland, affirming the liability is governed by the Carriage of Goods by Sea Act.

By a six to three vote, the high court backed Japanese shipping group "K" Line and the Union Pacific Railroad in rejecting a claim that the 1906 Carmack Amendment to the Interstate Commerce Act applied to goods moving on international through bills of lading. Carmack only applies in cases where a rail carrier receives goods from a shipper, reports Newark's Journal of Commerce.

"It follows that Carmack does not apply if the property is received at an overseas location under a through bill that covers the transport into an inland location in the United States," Associate Justice Anthony Kennedy wrote. "In such a case, there is no receiving rail carrier that 'receives' the property ... and thus no carrier that must issue a Carmack-compliant bill of lading."

"K" Line and the Union Pacific Railroad appealed the case from the 9th US Circuit Court. Mr Kennedy rejected the argument made by a group of shippers led by Regal-Beloit that held that "K" Line was a rail carrier that was obligated to issue a bill of lading under the Carmack Amendment.

"Carmack did not require 'K' Line to issue bills of lading because 'K' Line was not a receiving rail carrier," according to Justice Kennedy. "'K' Line obtained the cargo in China for overseas transport across an ocean and then to inland destinations in the United States."
(Source:www.schednet.com)