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Claim for Additional Freight Charges, 58 COMP. GEN. 799

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Highlights

A shipping line requested a review of a General Service Administration (GSA) settlement action which disallowed its claim for additional freight. The vessel carrying cargo under government bills of lading became disabled and the cargo had to be transshipped to its destination. The shipping line collected ocean freight charges under the original government bill of lading. Collection of additional charges for the transshipping was denied on the ground that under a government bill of lading, freight is at the risk of the vessel and cargo must be delivered to its destination before its freight is earned. The shipping line contended that its bill of lading, contract of carriage, provides that forwarding or transshipping of the goods to the designated destination is at the additional expense of the shipper. Federal legislation prohibits any advance of public money to contractors before the actual performance of the service or delivery. There was no indication in legislative history that when Congress amended the Shipping Act of 1916 in 1961, it intended to repeal the statutory and regulatory scheme for shipments moving under government bills of lading, which requires delivery to the specified destination in order to earn freight charges. The contrary provisions in the shipping line's bill of lading were ineffective to support additional freight. Therefore, the GSA disallowance of the claim for additional freight charges was sustained.

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Shirley A. Jones
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