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B-192002 1 (1979-09-26)

handle is hein.gao/gaobadhqi0001 and id is 1 raw text is: 

                                    THE  COMPTROLLER GENERAL
       DECISION                     OF   THE    UNITED       STATES
                                    VWASHINGTON, D.C. 2O548




       FILE:  B-192002                     DATE:  September 26, 1979

       MATTER OF: Delta Steamship Lines, Inc.       )70


       DIGEST:

            Since there is no indication in legislative history
            that Congress in amending Shipping Act, 1916, intended
            to repeal statutory and regulatory scheme which on
            shipments moving under Government bills of lading
            requires delivery to destination to earn freight charges,
            contrary provisions in carrier's LASH bill of lading are
            ineffective to support payment of additional freight
            charges.

            Delta Steamship Lines, Inc. (Delta), requests review by the
       Comptroller General of the General Services Administration's (GSA)f4
       settlement action which disallowed Delta's claim for additional
       frei ht  4 C.F.R. 53.3 (1978).  GSA's action was taken on eight
       shipments of Department of Defense cargo transported from New
74ty   Orleans, Louisiana, to various points in South America under
       Government bills of lading (GBL).

            While en route to Salvador, Brazil, the vessel performing
       the initial carriage, the SS Delta Norte, sustained machinery
       damage and had to be towed to Oranjestad, Aruba. Because parts
       necessary for repair would be unavailable for several months,
       the voyage was abandoned and the cargo was transshipped from
       Oranjestad, Aruba, to destination on the SS Delta Brasil.
       Delta claims that, pursuant to provisions 10 and 16 of its
       LASH bill of lading, transshipment of the cargo from Aruba
       to destination entitles it to receipt of a second freight. The   647
       shipper, Mi  - r   alift Command Gulf Subarea, denied Delta's
       claim contending that under a Government bill of lading freight
       is at the risk of the vessel which means that cargo must be de-
       livered to destination before freight is earned. It contends
       that Delta must bear the cost of transshipment in order to earn
       the original freight. GSA concurs in the denial of Delta's claim
       for the cost of transshipment. Delta collected ocean freight
       charges of $4,242.98 under the original Government bills of
       lading and was denied additional ocean freight charges of
       $3,815.76 for the voyage from Aruba to destination.

            The reverse of the covering GBL's Standard Form 1103,
       January 1974, provides that [e]xcept as provided in 4 C.F.R.

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