Illinois joins 15 other states with anti-indemnification statutes specific to motor carrier agreements by enacting 625 ILCS 5/18c-4105. The law, signed on August 27, 2009 takes effect immediately. As a result, any agreement that indemnifies the promisee/indemnitee from liability for loss or damage resulting from the promisee’s/indemnitee’s negligence or intentional acts is unenforceable in Illinois.
Illinois passes anti-indemnification law
Friday, August 28, 2009 by
Transportation Lawyer
Illinois joins 15 other states with anti-indemnification statutes specific to motor carrier agreements by enacting 625 ILCS 5/18c-4105. The law, signed on August 27, 2009 takes effect immediately. As a result, any agreement that indemnifies the promisee/indemnitee from liability for loss or damage resulting from the promisee’s/indemnitee’s negligence or intentional acts is unenforceable in Illinois.
Fuel Surcharge Pass-through Required on Defense Department Shipment
Wednesday, August 19, 2009 by
Transportation Lawyer
Pursuant to legislation adopted in 2008, the Defense Department in late July published an immediately effective interim amendment to the Defense Federal Acquisition Regulation, mandating a fuel surcharge pass-through clause in Defense Department transportation contracts and solicitations. Under the interim rule, this clause is to be inserted in “solicitations and contracts for carriage in which a motor carrier, broker, or freight forwarder will provide or arrange truck transportation services that provide for a fuel-related adjustment.” The rule includes a “flow-down” requirement, thus applying to carriers serving Defense Department contractors and subcontractors–including brokers and forwarders, who are required to pass fuel surcharges on to the motor carrier.
The Surface Deployment and Distribution Command has already included the pass-through requirement in its international and domestic household goods moving solicitations for the next rate cycles beginning October 1 and November 1, 2009, respectively. Other carriers should carefully review further announcements and solicitations from the defense agencies on the subject. Carriers, brokers, and forwarders should begin review and revision of their agreements with contractors and other motor carriers, forwarders, and brokers as necessary to ensure compliance. Those who pay flat per-mile or “adjusted” or “imputed” fuel surcharges, or who pass through less than 100% of the surcharge as shown on the government invoice, should pay special attention to these requirements.
Comments on the interim rule will be accepted until September 28, 2009. These new requirements relate only to Defense Department shipments, though legislative efforts to expand pass-through requirements are not unexpected.
The Surface Deployment and Distribution Command has already included the pass-through requirement in its international and domestic household goods moving solicitations for the next rate cycles beginning October 1 and November 1, 2009, respectively. Other carriers should carefully review further announcements and solicitations from the defense agencies on the subject. Carriers, brokers, and forwarders should begin review and revision of their agreements with contractors and other motor carriers, forwarders, and brokers as necessary to ensure compliance. Those who pay flat per-mile or “adjusted” or “imputed” fuel surcharges, or who pass through less than 100% of the surcharge as shown on the government invoice, should pay special attention to these requirements.
Comments on the interim rule will be accepted until September 28, 2009. These new requirements relate only to Defense Department shipments, though legislative efforts to expand pass-through requirements are not unexpected.
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