Cover Image
close this bookCARE Food Manual (CARE , 1998, 355 p.)
close this folderChapter 4 - Agreements and Contracts
close this folderIII. Contracts
View the document(introduction...)
View the documentA. Shipment Contracts
View the documentB. Independent Surveyors
View the documentC. Clearing and Forwarding Contracts
View the documentD. Warehouse Service
View the documentE. Leasing a Warehouse
View the documentF. Security Service Contracts
View the documentG. Transportation Contracts

G. Transportation Contracts

Before entering into a transportation contract, insure that the transporter is reputable. Speak with other organizations that have used the transporter to determine past performance. Look at the transporter's fleet as well as repair facilities and spare parts stores. If the transporter does not have the capability to perform, a well-written contract will do little to deliver food to locations that need it.

Checklist for Transportation Contracts

· Name of transporter
· Description of food and tonnages to be transported
· Duration of the contract and terms of renewal and termination
· Amendment of the contract
· Cancellation of contract for material breaches including failure to provide trucks on a timely basis or unacceptable losses of food during transport
· Name and title of person authorized to sign contract
· Force Majeure clause
· Right to sub-contract for independent transporters with CARE approval
· Routes and loading and unloading locations
· Name(s) and title(s) of CARE staff who direct the transport operation
· Precautions to be taken by the transporter in inclement weather

Use of tarpaulins

· Responsibility to keep trucks in good condition, repaired, maintained, insured, and properly licensed:

Insurance required by law of country of operation
Licensing, both for trucks and chauffeurs required by law of country of operation
Insurance or security deposit over contents transported

· If fuel is obtained by CARE, a description of how fuel will be allocated and controlled
· Responsibility for supplying spare parts, if applicable
· Transportation rates and examples:

Per metric ton per kilometer
Per kilometer or per route
Per time period, e.g., per week or month

· Handling cargo on return trips
· Responsibility for loading and unloading food, including costs of labor
· Documents to be used and routing of documents

Waybills signed by transporter at dispatch and upon receipt

· Procedures and responsibilities for losses:

Reconstitution of damaged food
Commodity suspected to be unfit for human consumption
Short deliveries
Waybill signed by transporter and warehouse manager or storekeeper at dispatching and receiving warehouse is primary source document for determining damages

· Procedures and responsibilities including use of waybills for returning food to dispatching warehouse.
· Payment procedures:

Payment based on invoice submitted with copy of waybill signed by transporter and receiver
No payment for missing or damaged food
Type of payment -- US$., other currency

· Claims against transporter for missing or damaged food in in-transit or temporary storage in transporter's warehouses

Deductions from transporter's invoice:
Method of calculating value of claim:

local market value of food
local market value plus percentage as a penalty other

· Penalties for delay and noncompliance with delivery schedules
· Waiver of liability for CARE for any death or damage to persons or property caused by the transporter's trucks while carrying food from CARE or counterpart warehouses

· Provisions for settlement of disputes and enforcement of the contract