Service Level Agreement
STANDARD PROTOCOL FOR FREIGHT FORWARDING
AND WAREHOUSING SERVICES PROVIDED BY DELIVERIGHT
This Protocol with appendices establishes the standard holding out of services by Deliveright when arranging transportation and providing storage for its customers (“Shippers”). Service shall be provided subject to general principles of federal surface transportation law governing regulated commodities, regardless of the nature of the freight handled and standard warehousing rights and remedies permitted under applicable law.
The terms of the standard Bill of Lading, warehouse terms and conditions, Federal Statutes and Regulations including but not limited to the handling of cargo claims are expressly adopted and shall apply to the services provided by Deliveright acting as a non-asset based carrier or freight forwarder and to all transportation service providers it retains. All rights, remedies, duties and obligations are preserved pursuant to 49 U.S.C. 14101(a). This Protocol including appendices establishes Deliveright’s standard service offering and performance obligations.
Additional services and obligations required by Shippers must be set forth in a signed Scope of Work Addendum detailing the additional services required and the applicable charges.
General Service Terms and Conditions
Scope of Application. Deliveright provides transportation services as a licensed freight forwarder in accordance with 49 U.S.C. 14101(a) and warehousing services under NCBFAA standard terms and conditions, subject to the terms and conditions set forth herein. This Protocol, with appendices, shall apply to all services (described below) provided or arranged by Deliveright unless otherwise included in a scope of work addendum setting forth additional service requirements as agreed to in writing by Deliveright. Deliveright agrees to transport Shipper’s merchandise from/to origins/destinations in its service territory (Zip Codes previously provided) and in accordance with the service requirements set forth herein.
Freight payment and warehousing charges.
All shipments will be transported by properly licensed, authorized and insured carriers under contract with Deliveright subject to rates agreed to by Deliveright with Shipper and reflected at time of booking as shown on Deliveright’s Order Confirmation. Any adjustments to the rates, charges or rules shall be accomplished only by the written agreement of the parties, except for charges related to ferries, heavy items, and other items described below.
Freight charges shall be billed to Shipper upon delivery and shall be paid within 15 days of receipt or rejection by consignee without offset.
Deliveright preserves all collection rights including interest in the amount of 1.5% per month and collection fees which shall commence 10 days after notice to Shipper of default. Upon default, Deliveright reserves all applicable bill of lading and warehousing liens.
Warehousing fees in excess of free time shall be billed monthly (see Appendix B).
Deliveright retains a spreading lien on all goods in storage for freight charges and storage fees under applicable state Uniform Commercial Code standards.
For any deliveries in which a ferry is required, the shipment will be subject to an upcharge equivalent to the ferry ticket amount. For locations deemed to be remote areas for Deliveright, a separate quote will be requested.
In the event of a refusal of a shipment by a consignee or in the event that Deliveright, for any reason, is unable to deliver a shipment, Deliveright shall notify Shipper promptly. Deliveright may be required to hold merchandise at its location free of charge during free time set forth herein.
Cargo liability. All shipments received for transportation and/or storage shall be subject to the standard release rate at the time of the order booking, as captured on Deliveright’s system. For increased limits of cargo liability see 7 (d) below. All cargo claims for shipments in transit shall be subject to 49 U.S.C. 14706 (the Carmack Amendment) and federal cargo claims rules, including venue and jurisdiction. Claims for damage will not be accepted for any items made of fragile materials, including but not limited to glass, mirrors, marble, ceramic, or tile, high-gloss or lacquered items, lamps, and carpets and/or rugs (“Fragile Items”).
Deliveright, as a non-asset based carrier, warrants that it is a properly licensed, authorized Freight Forwarder at FF-18812.
Deliveright warrants it shall contractually require strict compliance with all applicable federal and state safety and employment laws by all carriers and warehousemen it retains.
Deliveright’s shipment confirmation shall fulfill its bill of lading obligation by reference. Nonconforming shipping documents shall serve as receipts for goods only.
5. Dispute resolution. As an alternative to litigation, the parties agree to alternative dispute resolution before the Transportation Lawyers ADR Council upon request of either party. Shippers and any other named consignor or consignee shall be provided with notice of sale prior to the exercise of any lien rights for nonpayment.
6. Mutual indemnification. Shipper and Deliveright will cross-indemnify each other to the extent of the negligent act or omission of the indemnitor or breach of warranty which causes bodily injury or property damage (except for cargo). See Paragraph 4.
7. Insurance to be maintained. Deliveright warrants that it and its retained providers maintain insurance in the following amounts which will inure to the benefit of its Shippers and the beneficial owner of the goods.
Retained carriers shall maintain auto liability coverage in the amount of $100,000 per occurrence.
All risk motor cargo and warehouse insurance coextensive with Deliveright’s legal liability in the amount of up to $100,000 per occurrence or $5,000 per shipment, whichever is less.
Worker’s compensation and employee liability coverage as required by applicable state law.
For high value cargo, Shippers may elect to: (1) purchase shipper interest insurance and waive subrogation for excess liability; or (2) make prior arrangements with Deliveright for increased liability coverage in return for a commensurate increase in freight charges.
Appendix B – Standard Pricing Terms
Free time – Up to 30 days after receipt for outbound storage awaiting delivery appointment and up to 30 days storage of rejected and returned items awaiting disposition instructions from shipper.
Charges for guaranteed appointment times, as mutually determined.
Truck ordered and not used fee: 100% of quote
Loading and unloading fee: as mutually determined
Storage and Warehousing charges after free time: As stated on the client’s rate schedule or $40 per piece per month, invoiced on the first day of each month
Interest and attorney’s fees 1.5% per month after notice of delinquency plus collection fees of 30% plus costs.
Standard Operating Procedures
Deliveright shall maintain shipping documents, proof of receipt and delivery of goods in transit as well as warehouse inventory to permit the tracking of shipments while in its possession and control. Invoices for freight and delivery charges will be sent upon receipt by consignee, rejected delivery or expiration of free time, whichever is first.
SERVICES TO BE PROVIDED
Deliveright’s operating hours are Monday through Friday, 8 AM to 6 PM. Deliveright’s receiving hours, when Deliveright can receive shipments at its locations, are Monday through Friday, 7 AM to 3 PM.
Depending on the season, Deliveright will make deliveries on Saturdays. However, Deliveright does not commit to delivering on a Saturday in every instance.
Deliveright will provide a tracking link for every delivery processed for Shipper.
Information available to Shipper will include when items are received by Deliveright, when deliveries are scheduled, when deliveries occur and any exceptions for damage or consignee refusal. Proof of Delivery will include items delivered, image of consignee’s signature accepting merchandise and stating that no home/property damage has occurred and photo(s) of items in the consignee’s home (unless consignee objects to photos being taken).
All Inbound Freight will be inspected in accordance with Receiving Guidelines below. If there is damage to any merchandise, Deliveright will wait for disposition from Shipper prior to contacting the consignee.
Consignees will be contacted to schedule delivery once items are received at our cross dock facility (typically same day or next day). An automated call is made or text message is sent to the consignee as soon as the complete order is scanned into our system.
Once scheduled, we will contact consignees by an automated phone call, text message, or email 24-48 hours before the delivery in order to provide a three-hour window. We will try to accommodate a consignee’s request for a specific delivery time when possible.
Deliveright inspects white glove orders 24-48 hours prior to delivery. Through Grasshopper, Shippers can request that an order be inspected upon arrival at the final-mile hub, for an additional fee.
All consignees will receive an automated call or text message 30 minutes prior to delivery.
For carpet deliveries, unpacking and laying down is included in the price as long as the area where the rug is being laid is clear of furniture. Two-man delivery along with removal of packaging is included. The carpet should be cut to size before arriving at Deliveright.
Any single piece above 300 lbs will incur an additional charge to cover the additional labor required to safely install the piece into the home. More charges will apply to single items for every 125 lb increment over 300 lbs (ie 425 lbs, 550 lbs, etc.)
Upon completion of delivery or an exception due to the consignee rejecting the order, email addresses provided by Shipper will be sent either a delivery confirmation or notice of an exception.
Upon completion of delivery, consignees are sent a text message survey to review Deliveright’s performance. The results of these surveys will be available to Shipper in real time through the Shipper’s dashboard account.
As mentioned above, all incoming merchandise will be inspected according to the following procedures:
A. COMPLETE VISUAL INSPECTION
All items will be visually inspected for possible product damage. A visual inspection does not require opening packages to inspect the contents unless the packaging appears to be compromised.
Consignee’s shipments will be received for storage awaiting shipper’s disposition instructions on both outbound and return shipments. Storage charges will accrue after expiration of free time (see Appendix B).
Compromised Packaging consists of any of: i) torn, ripped, or holes found in exterior packaging; ii) crushed packaging, crushed corners; iii) water stained or wet packaging; or iv) lack of packaging (exposing product).
Upon discovery of Compromised Packaging or a lack of packaging, we will further examine for Visible Product Damage. If Visible Product Damage is found, the damaged item(s) will be refused. Visible Product Damage is comprised of any of the following: i) exposed/damaged product due to compromised packaging; ii) crushed packaging that has compromised the contents; iii) water damage to product; iv) torn fabric or other product materials; v) scratched wood, metal, or other product materials; vi) dented product; vii) dirt or grease stained product; viii) shattered glass, mirror, other product materials / contents; ix) broken pieces; or x) chipped surfaces.
Light colored upholstery and Fragile Items will not be opened and inspected prior to delivery unless Compromised Packaging is found.
B. REFUSE OR ACCEPT DELIVERY
If freight has Clean Packaging, or Compromised Packaging with no Visible Product Damage identified, Deliveright will accept the freight. If Visible Product Damage has been identified, we will refuse the damaged freight and update the tracking information with the relevant data.
Once freight is either accepted or refused, Deliveright will update the Shipper’s tracking information promptly. Shipper will be notified of any items needing time consuming or expensive repairs and an estimate will be provided before any repairs commence.
C. CONCEALED DAMAGES
As long as the guidelines above are followed, Deliveright will not be held liable for Concealed Damage, which is defined as:
Any damage that is reported after consignee signs a clear Proof of Delivery; and
In the absence of evidence of external damage, Concealed Damages first discovered upon visual inspection of the shipment will be the responsibility of the Shipper.
Rejected shipments will be returned to Deliveright’s nearest location for inspection. Rejected shipments shall be inspected for damage and an On Hand Notice (documenting that the shipment has been placed in storage) shall be issued. The On Hand Notice will request inspection and disposition instructions prior to expiration of free time, after which storage fees shall apply.
Customers may obtain information related to specific claims by checking their online account with Deliveright.
A Proof of Delivery, signed by the consignee without notice of damage to the merchandise or the consignee’s location shall preclude the filing of any claim against Deliveright thereafter.
The insured value of an order is captured at the time of booking. As mentioned above, additional insurance can be purchased up to the maximum as determined at the time of booking an order. Deliveright cannot honor claims over the covered amount, as captured at the time of booking on the order. Upon payment of a claim to replace an item, Deliveright has the right to dispose of the original item.
With the exception of Fragile Items, Deliveright will only be responsible for damage identified during pre-delivery inspection if Deliveright handled transportation to the final-mile terminal. If the Shipper handled transportation to the final-mile terminal, Deliveright will not be held responsible for any pre-delivery damage.
Deliveright has the right (for 14 days) to attempt to repair any damaged item before the Shipper can order a replacement. If Deliveright advises that the item cannot be repaired in this timeframe or that a repair has failed, only then can Shipper order a replacement at Deliveright’s cost (subject to maximum insured value described above). Shipper must inform Deliveright when ordering a replacement and let Deliveright know of the cost (wholesale) as soon as possible.
If Shipper asks Deliveright to deliver a damaged item as a loaner, with the intention of shipping a replacement to the customer at a later date, Deliveright will not be responsible for the cost of the replacement.
Unless there is clear and documented damage to the packaging of an item, Deliveright cannot honor claims on any orders with a service level of Business-to-Business, Curbside, Threshold, Room of Choice, Room of Choice with Debris Removal or Room of Choice with Assembly and Debris Removal with a clean, signed Proof-of-Delivery.
Deliveright shall not be liable for indirect damages including, but not limited to, any loss of profits or revenue, any excess time allocated, or any damages or inconveniences reported by Shipper, consignee or other third party.
All approved claims will be paid out to Shipper in the form of shipping credits, to be applied towards future orders Shipper books with Deliveright. Deliveright will not process checks, bank transfers, or credit card charges to pay any approved claims, unless there are extenuating circumstances.
If Deliveright is picking up a product that is unpackaged, Deliveright will only honor claims up to an amount set at Deliveright’s discretion. Deliveright cannot guarantee that the full replacement value will be covered, even if additional insurance is purchased on the order.
Insurance coverage does not cover Freight Delays.
In the event there is damage to a consignee’s home, it must be noted on the delivery receipt and notice of the claim must be filed with Deliveright within 5 days of the occurrence.
Claims shall be adjusted based on the provisions above and shall not affect Shipper’s obligation to pay freight charges within Deliveright’s credit terms.
Shippers may obtain information related to specific claims by checking their dashboard account.
In the absence of communication by a Shipper regarding disposition (or payment delinquency), within 30 days after notice by Deliveright, merchandise will be considered abandoned. Deliveright will provide notice to Shipper prior to exercising its possessory lien rights with respect to abandoned shipments or payment delinquencies.
Shipper will be subject to a fee for Deliveright coordinating the disposal or donation process.