[Federal Register Volume 71, Number 99 (Tuesday, May 23, 2006)]
[Notices]
[Pages 29707-29708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-7764]


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DEPARTMENT OF TRANSPORTATION

Surface Transportation Board

[STB Ex Parte No. 662]


Review of Liability of Motor Common Carriers of Household Goods

AGENCY: Surface Transportation Board.

ACTION: Notice and request for comments.

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SUMMARY: In the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (SAFETEA-LU), Public Law No. 109-59, 
Sec.  4215, 119 Stat. 1144 (2005), Congress directed the Surface 
Transportation Board (Board) to review the current Federal regulations 
regarding the level of liability protection provided by motor carriers 
that provide transportation of household goods (HHG) and revise the 
regulations, if necessary, to provide enhanced protection in the case 
of loss or damage. The Board seeks public comment on the issue.

DATES: Comments are due June 22, 2006.

ADDRESSES: Send an original and 10 copies of any comments, referring to 
STB Ex Parte No. 662, to: Surface Transportation Board, 1925 K Street, 
NW., Washington DC 20423-0001.

FOR FURTHER INFORMATION CONTACT: Lawrence C. Herzig, (202) 565-1578. 
[Federal Information Relay Service (FIRS) for the hearing impaired: 1-
800-877-8339].

SUPPLEMENTARY INFORMATION: Prior to the enactment of SAFETEA-LU on 
August 10, 2005, under 49 U.S.C. 14706, motor carriers of HHG were 
generally held liable for the actual loss or injury they caused to the 
property they transported and, because most HHG are ``used,'' the 
carrier's liability historically extended to the depreciated value of 
the goods. However, under 49 U.S.C. 14706(f), HHG carriers could, with 
the Board's permission, limit their liability by offering ``released 
rates'' (rates under which the carrier is released from the statutory 
level of cargo liability, and the carrier's liability for a shipment of 
property is limited to a value established by written declaration of 
the shipper or by a written agreement). The Board has issued orders 
authorizing HHG carriers to adopt released rates that follow a certain 
format.
    In section 4207 of SAFETEA-LU, Congress changed the statutorily 
prescribed, standard liability of HHG carriers for loss or damage to 
the replacement value of the goods, up to the pre-declared total value 
of the shipment, unless the shipper waives in writing that level of 
protection. In addition to making that statutory change, Congress also 
directed the Board, in section 4215, to review the current Federal 
regulations regarding the level of liability protection provided by HHG 
carriers and revise the regulations, if necessary, to provide enhanced 
protection in the case of loss or damage.
    The current regulations at 49 CFR 375.201-203, promulgated by the 
Federal Motor Carrier Safety Administration of the Department of 
Transportation, provide generally that a

[[Page 29708]]

HHG carrier is liable for loss or damage to HHG to the extent provided 
in the Board's current released rates order. 49 CFR 375.201(b). There 
are additional provisions concerning limitations on HHG carriers' 
liability for perishable, dangerous, or hazardous articles in a 
shipment and for items valued at more than $100 per pound. 49 CFR 
375.203.
    The Board's current released rates orders--Released Rates of Motor 
Common Carriers of Household Goods, 5 S.T.B. 1147 (2001), and Released 
Rates of Motor Common Carriers of Household Goods, Amendment No. 4 to 
Released Rates Decision No. MC-999 (STB served April 22, 2002) \1\--
authorize HHG carriers to limit their liability for damage or loss of 
the goods in their care through a written declaration of the shipper. 
Under these orders, HHG carriers may offer their shippers two options 
concerning the level of cargo liability to be assumed by the carrier, 
depending upon the level of the rate that the shipper wishes to pay for 
the transportation of its goods. Under one option, the carrier's cargo 
liability may be limited to 60 cents per pound, per article, if the 
shipper writes a valuation of ``60 cents per pound'' on the bill of 
lading. In that event, the shipper pays only a base rate for the 
shipment. Alternatively, for an additional charge, the shipper may 
obtain ``full value protection'' for the shipped goods, meaning that 
the carrier is liable for the replacement value of the lost or damaged 
goods (up to the pre-declared value of the shipment) or, at the 
carrier's option, for restoring damaged goods to their prior condition.
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    \1\ Board decisions and notices are available on the Board's Web 
site at http://www.stb.dot.gov. The Board recently sought comments 
on a proposed change to the current released rates orders. See 
Released Rates of Motor Common Carriers of Household Goods, 
Amendment No. 4 to Released Rates Decision No. MC-999 (STB served 
and published April 13, 2006) (71 FR 19234-35).
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    In directing a review of the current liability protection for 
shippers of HHG, Congress asked the Board to address:
    (1) Whether the current regulations provide adequate protection;
    (2) The benefits of purchase by a shipper of insurance to 
supplement the carrier's limitations on liability; and
    (3) Whether there are abuses of the current regulations that leave 
the shipper unprotected in the event of loss and damage to a shipment 
of HHG.
    The Board seeks public comment on these issues.

    Decided: May 16, 2006.

    By the Board, Chairman Buttrey and Vice Chairman Mulvey.
Vernon A. Williams,
Secretary.
[FR Doc. E6-7764 Filed 5-22-06; 8:45 am]
BILLING CODE 4915-01-P