When shipping fresh fruits and vegetables, shippers must understand and consider commodity compatibility, particularly regarding temperature, relative humidity, and ethylene sensitivity. This issue becomes especially significant in LTL (less-than-truckload) shipments, where multiple commodities may share space on a trailer.
Understanding the risk in delivered vs. FOB sales
When shipping on a delivered basis, the shipper bears all in-transit risk, including any damage resulting from the co-loading of incompatible commodities. This includes liability for ethylene exposure, temperature abuse, and chilling injury if incompatible products are shipped together.
If you're loading an LTL shipment, it is essential to provide clear and specific instructions on the BOL (bill of lading), advising the carrier not to load any incompatible commodities after your product has been loaded. If your customer attempts to direct the carrier to load additional, incompatible products, that action may void the suitable shipping condition warranty, thereby shifting responsibility for the load. In such cases, the buyer assumes liability and remains obligated to pay the full contract price.
Conversely, in FOB sales, where the buyer arranges transportation, all in-transit risks transfer to the buyer. However, if the shipper actively loads an incompatible commodity—or fails to object to such a loading—liability may shift back to the shipper. Therefore, if you observe incompatible products on the trailer before or during loading, you must immediately notify the buyer in writing and clearly state that you will not be responsible for any resulting damages. Always document this communication.
Consider the example of a mixed load involving table grapes and honeydew melons. Grapes require transport at 32°F, while honeydews must be shipped at 45°F. If these are loaded together, the risk of chilling injury to the melons or heat damage to the grapes becomes significant. Under an FOB contract, the buyer would bear this risk—unless the shipper knowingly facilitated or failed to object to the improper loading.
I recently assisted a lettuce shipper who faced a claim after 120 cartons of iceberg lettuce were rejected upon arrival in New York. The USDA inspection revealed russet spotting, symptomatic of ethylene exposure, even though no such issues had been observed in other shipments from the same lot. We advised the shipper to request a complete manifest from the buyer to determine if any ethylene-producing commodities had been co-loaded.
After several discussions, the buyer disclosed that pears and tomatoes—both ethylene producers—had been loaded with the iceberg lettuce. Once we established that ethylene exposure was the likely cause of the condition issue, the buyer accepted responsibility, and the shipper was paid in full.
For more information:
Western Growers
Tel: +1 949 863 9028
Email: [email protected]
www.wga.com