DC Velocity - May 2016

NAA-1097 ISS: 4/16

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UniCarriers Americas Corp. has appointed Anderson Silva to logistics coordinator and Rafael Nishino to coordinator of planning and purchases for its South American subsidiary, UniCarriers Corp. South America. … XPO Logistics Inc. has appointed Gena L. Ashe to its board as an independent director and chair of the nominating and corporate governance committee, and

Michael G. Jesselson as lead independent director. … Buckhorn Inc., a provider of reusable plastic packaging and material handling systems, has named Lane Pence director of sales. … Cushman & Wakefield has promoted Kate Spencer to managing director and practice leader for Valuation & Advisory’s Self Storage Practice Group. … Cargomatic, a technology platform that matches shippers and truckers, has announced the appointment of Chuck Oeleis as executive vice president of sales and Meaghan Diem as vice president of enterprise sales. … Illinois Material Handling has appointed Pat Ryan vice president, general manager of its Bolingbrook, Ill., facility. … Forte has added Brian O’Connell to its expanding team in Charlotte, N.C., as the new sales manager.

newsmakers

PENCE

ply chain. In a statement issued when the rules became final, the FDA said it wants to “prevent practices during transportation” that could jeopardize food safety. Robert D. Moseley, an attorney for the law firm Smith Moore Leatherwood LLP, said in a note on the firm’s website that the final rules are not as broad-based as what was first proposed.

There are a host of exemptions. For example, the rules do not apply to Mexican or Canadian companies shipping food through the U.S., as long as the food doesn’t enter U.S. distribution. Shippers, carriers, and receivers of milk products that are inspected under a separate program are also exempt. And waivers were granted to those who physically unload the goods, though the receivers of the product must still comply.

The FDA dropped its requirement for specific monitoring technology to be installed on or in the trailer, leaving it up to the broker and carrier to determine the devices to be used. Brokers will also not be liable for products, such as chocolate and butter, whose characteristics may change during transportation but wouldn’t present a hazard if consumed in their altered form.

In two more breaks for brokers, the FDA said one batch of spoiled product would not render the entire load adulterated. The agency added that deviations in temperature between what appears on the bill of lading and what is actually recorded in transit or upon arrival must be “material,” and not incidental, for the shipper to be liable.

TIA said in its 2014 comments to the proposed rule that a full load would be considered adulterated even if there was a mere 0.5-percent deviation in temperature levels and that the broker would be on the hook for the total cost. Currently, the burden of proof falls on the producer and, at worst, the broker would be responsible for a portion of the cost of the damaged goods, according to the group.

The FDA has also left open the possibility that a shipper or carrier can rebut a charge of contamination if it can get a qualified individual to attest that the circumstances surrounding the transportation did not render the freight unsafe. Noting the provision, Moseley advised that it “would be a good time to get a retired FDA inspector on speed dial.”