Disposition in Freight Shipping | An LTL Blog by Freight Brokers (2024)

Disposition in Freight Shipping | An LTL Blog by Freight Brokers (1)

When I was a teenager, my mother would often tell me I had a sour disposition. Of course, I would immediately shout, "Whatever!" and sulk up to my room. That's how it goes when you're 14 and emo. All this is to say that when I started working in freight and hearing the term disposition over and over again, it put a smile on my face. Disposition in freight shipping, however, is not about upset teenagers.

Disposition in freight shipping occurs when the freight is refused by the consignee and returned to the shipping terminal. The carrier will ask for disposition, essentially posing the question: What do you want us to do with this?

Freight can be refused by the consignee for a number of reasons. If freight is suspected to be damaged, we often instruct our consignees to refuse the freight, and we'll begin the process of filing a freight claim for the damage. Sometimes there is a mistake on the bill of lading used at the time of pickup and the shipment is delivered to the wrong location.

Sometimes it will be a duplicate shipment, and the consignee already got their shipment last week. Whatever the reason, disposition is required when freight is refused.

Instructions for disposition are most likely required to be in writing, from the billing party for the shipment. If you're using a freight broker, then you'll need them to send the email to the carrier with instructions for how to handle the freight. Like most things, disposition in freight shipping is time sensitive.

If a carrier does not get disposition in a timely manner, the shipment will likely go into storage, and that opens a new can of worms that can end up costing you money.

If you find that your broker or carrier is seeking disposition, act quickly and with purpose. Avoid storage at all costs, and keep in contact with your broker to get disposition figured out as painlessly as possible.

As a seasoned professional in the field of freight shipping, my extensive experience and in-depth knowledge allow me to delve into the intricacies of the subject matter. Having navigated the complex terrain of freight logistics and operations, I bring a wealth of first-hand expertise to shed light on the concept of disposition in freight shipping.

The term "disposition" holds significant weight in the realm of freight logistics, particularly when a consignee refuses the freight and it is returned to the shipping terminal. Unlike the emotional disposition I encountered during my teenage years, the disposition in freight is a procedural aspect that demands careful attention.

When a consignee rejects a shipment, the carrier initiates the process of disposition, essentially seeking guidance on how to proceed with the refused freight. This prompts the pivotal question: What do you want us to do with this? The reasons for freight refusal can vary, ranging from suspected damage to errors in the bill of lading or even instances of duplicate shipments.

In the case of suspected damage, consignees are often instructed to refuse the freight, initiating the subsequent steps of filing a freight claim to address the potential damages. Additionally, errors in documentation, such as mistakes on the bill of lading, may lead to the delivery of shipments to the wrong location, necessitating disposition.

Disposition instructions are typically required in written form, originating from the billing party responsible for the shipment. In situations where a freight broker is involved, they play a crucial role in communicating these instructions to the carrier. Time sensitivity is a critical factor in disposition, as delays can result in the shipment being placed in storage, leading to potential financial repercussions.

Acting promptly and purposefully is emphasized when disposition is sought by the carrier. Failure to provide timely disposition may lead to the shipment being stored, incurring additional costs and complexities. For those utilizing freight brokers, maintaining constant communication and swiftly resolving disposition matters are paramount to ensuring a seamless process and avoiding unnecessary expenses associated with storage.

In essence, disposition in freight shipping is a crucial element that demands proactive and efficient handling to prevent complications and financial implications. Drawing from my expertise in the field, I emphasize the importance of timely action and effective communication in navigating the intricacies of disposition within the freight shipping industry.

Disposition in Freight Shipping | An LTL Blog by Freight Brokers (2024)

FAQs

What does disposition mean in LTL? ›

Disposition occurs in various areas of logistics, essentially covering the areas purchasing, warehousing and transport. In keeping with the Latin term 'disposition' – which means administration, allocation, decision, arrangement, disposition – tasks involve everyday organisational logistics.

What does destination awaiting disposition mean? ›

Awaiting disposition means that a legal decision has not yet been reached, and that the decision has not yet been formulated or submitted as final.

What is cargo disposition? ›

In business, a disposition is a decision that is incorporated into the production process as an order. Either a computer or an employee decides how this order is processed. The administrative activity of this employee or dispatcher includes the timing of the movement of goods.

What are the four types of cargo claims? ›

Damage, loss, shortage, and concealed damage or shortage are the common claims that can occur in logistics.

What is the rule of disposition? ›

Disposition, in trusts and estates law, is the transfer, gift or sale of property from one individual to another. Disposition is generally done through a deed or will and involves transfer of possession.

What are the two types of disposition? ›

The two types of disposition for federal records are retention and disposal, where retention involves keeping records for a set period, and disposal involves destruction or archiving of records no longer needed for current business.

Is disposition good or bad? ›

Disposition means the positive or negative way a person views the world. In contrast, your character is determined by your inner moral values, and your personality reflects what you're like as an individual. An animal with an excellent disposition is friendly towards people.

What does disposition mean status? ›

The disposition on a criminal record is the current status or final outcome of an arrest or prosecution. Common dispositions are: Convicted: means you have plead or been found guilty by a court of law. Acquitted: means you have been found not guilty by a court of law in a criminal trial.

What does it mean when a disposition is pending? ›

What does pending disposition mean after you have been sentenced to prison? Pending disposition means the case has not been disposed; i.e., no plea bargain has been entered nor has the case gone to trial where the defendant was either found not guilty or found guilty and sentenced.

What does shippers disposition mean? ›

Disposition. Authorized instructions given to a common carrier regarding the movement of a shipment.

What is the disposition of a package? ›

Disposition (DISP) – Used to request information identifying where an item was presented or returned. The information provided includes the: routing number, cash/return letter date, cash/return letter total, bundle total, sequence number, item before and item after the item that is the subject of the request.

What is meant by disposition of an item? ›

The term “disposition”, with respect to a product within the possession or control of an entity, means the removal of such product from the pharmaceutical distribution supply chain, which may include disposal or return of the product for disposal or other appropriate handling and other actions, such as retaining a ...

Who is responsible for filing a freight claim? ›

Whoever owns the freight while in transit has the responsibility for filing claims for loss and damage. Unless the purchase contract states otherwise, the F.O.B. point governs the transfer of title.

What is a claim process in logistics? ›

A freight claim is a formal request made to a carrier for reimbursem*nt or compensation due to damaged, or lost freight during transit. This process is crucial in the logistics chain as it allows for the resolution of issues that arise while transporting goods.

What does disposition of an item mean? ›

The term “disposition”, with respect to a product within the possession or control of an entity, means the removal of such product from the pharmaceutical distribution supply chain, which may include disposal or return of the product for disposal or other appropriate handling and other actions, such as retaining a ...

Is disposition the same as selling? ›

A disposition is the act of selling or otherwise "disposing" of an asset or security. The most common form of a disposition would be selling a stock investment on the open market, such as a stock exchange.

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