Month: August 2017

In the produce industry, things move quickly and change occurs frequently. Businesses open, close, amalgamate, change ownership, move, rebrand, or simply (or not so simply) change names. Is your company in the midst of a change? How does this impact your DRC membership? Can you transfer your DRC membership?

In a nutshell, each legal entity requires its own membership and membership is continual until terminated or expelled in accordance with the DRC by-laws and operating rules.  A membership is not transferable from one legal entity to another, however there are some variations and DRC can assist you in determining your unique situation.  In order to ensure your rights and responsibilities remain intact, if you have made, or are going to make, any changes to your business legal or operating status, you have an obligation to contact DRC.

Please remember that it is the DRC members’ obligation to report any changes to the legal and operating status of the business as per DRC by-law No. 1, Section 3.03 Communications and Information. This includes (but is not limited to) dissolutions, bankruptcies and receiverships, as well as any changes to the corporate record including company name, responsibly connected individuals, address, phone, fax and email.

“Updating your record of information is straightforward and does not require much time.  Please call us and we will be happy to walk you through it” stated Dawn Hughes, Member Service Administrator.

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

When you receive a load and there is a problem, let the shipper know right away about the problem and make a decision within a reasonable timeframe as to whether you are going to accept or reject the load.

According to DRC trading standards, a receiver must advise the shipper in writing that the load is rejected. Within 8 working hours (excludes Sundays and Holidays) after receipt of notice of arrival of the shipment the receiver must apply for inspection and, within 3 hours after receiving a written or oral report of the result of the inspection, advise the shipper in writing that the load is being rejected.

Reasonable time for fresh fruits and vegetables can vary depending on the mode of transportation. According to DRC trading standards, reasonable time means:

Rail shipments: not to exceed 24 hours after notice of arrival and the car has been placed in a location where the produce is made accessible for inspection.

Truck shipments: not to exceed 8 hours after the receiver or a responsible representative is given notice of arrival and the produce is made accessible for inspection.

Boat shipments: not to exceed 24 hours after the receiver or a responsible representative is given notice of arrival and the produce is unloaded and made accessible for inspection.

It is important to note that unloading the truck for any purpose other than making the product accessible for an inspection is deemed acceptance and rejection is no longer an option.

Providing written notice in a reasonable time is critical. All too often a party will do the right thing but fail to recover damages because they failed to notify their trading partner of their intention.

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

It’s getting hot out there! Summer is here and we thought a friendly reminder to double-check transport temperatures and unit modes is in order. Shippers and carriers have a shared responsibility for what happens at shipping point, during loading and releasing the truck.

The hiring party should ensure clear instructions are provided to run units on continuous mode and not stop/start (also called cycle entry). Not only should proper temperature be specified, but be sure to instruct that the reefer remain on continuous mode in order to avoid condensation or heat building up on many high respiration products.

Shippers need to make sure that the product is loaded in such a manner that it would make good arrival or meet contract terms at destination. Depending on the terms of the contract it is the shipper’s or receiver’s responsibility to verify the truck is in proper condition and the reefer is set at the right temperature and mode.

The carrier is responsible for ensuring the truck is in sound condition and for following transport instructions given by the hiring party or following the instructions on the Bill of Lading. If conflicting information exists between the transport instructions and the BOL, or there is missing information, it is the carrier’s responsibility to contact the party who hired them and request instructions. That said, be proactive and ensure temperature and mode are specified.

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]

Once two parties have agreed to do business and the load is shipped there are trading standards that apply. When a sale occurs and delivery is attempted there could be two options for the receiver: accept or reject the load. Accept means the buyer takes control of the load, while reject means the buyer refuses to take delivery or exercise any control over the load. These terms have clear definitions and dictate specific rights and responsibilities for each party. Many actions are taken after the initial decision, but this decision determines who is in control, and what action needs to follow.

Acceptance:
When the load arrives at destination and is not rejected there are three possible scenarios to complete the transaction:

1. Accept the product and pay as invoiced
2. Accept the product and request for a federal inspection if there is an issue with the condition of the product.
3. Agree on a new contract (i.e. consignment, repack, replace, credit)

All three of these options leave the buyer in control of the product and responsible for payment in line with the agreement or applicable DRC rules.

Rejection:
When a firm rejects a load with a valid reason they are returning title of the product to the seller. They are in effect saying that it needs to be removed as they do not want it and will not accept it.  The responsibility is then on the seller to move the product and mitigate the loss on the product be it a rejection with, or without, reasonable cause.

If a buyer rejects the product without reasonable cause, the seller may not agree and will advise the buyer that they are rejecting without reasonable cause. The seller can notify the buyer of its intention and will then bill for the difference between the original invoice and the resale of the product to a new consignee.

It is important to note that unloading the truck for any purpose other than making the product accessible for an inspection is deemed acceptance and rejection is no longer an option.

It is also important to note that buyers and sellers have a responsibility to mitigate any loss if the other party fails to act. In other words, you cannot just let the product sit and spoil.

For more information please call or email the DRC Help Desk at:

DRC Help Desk | 613-234-0982 | [email protected]