Why You Need to Know About the DOT’s Arbitration Program

All customers of an interstate moving company should be eligible for a program. Arbitration is the name given to that particular program. What is arbitration program name? Its mission is to address concerns about the following entities.

Damage claims for moving

Charges billed to a moving firm that operates beyond state lines. This goes above and beyond the delivery fees. You may be required to participate in the HHG Arbitration Program by your moving firm. Refer to 49 USC 14706 when moving the fmcsa regulations from one state to another. Nonetheless, let’s imagine that your moving company is required to participate in an Arbitration Program. To better understand Arbitration Programs for Household Goods, consider these eight crucial factors:

Recognize Shipper’s address

A contract can be struck that both parties can gain from. You can mail products to the customer’s job rather than their home, for example. Without participation in an Arbitration, your business may suffer as a result of the fact that most people live close to where they work. However, until you inquire, you’ll never know when the acquisition of the moving procedure is in order.

Keep in mind neutral arbitrage

HHG movers are required to inform shippers of their services.

Neutral Attribution

·         Before a shipper’s HHGs are ready to be shipped, this must be done. When referring to neutral arbitration, provide the following three points.

·         Arbitration’s full legal consequences are fully disclosed.

·         An overview of your arbitration procedures for the programme in which the applicant intends to compete.

·         Estimated expenditures for each stage of the project.

Complete all forms

What if the shipper wants to know more? According to US law, the HHG mover is compelled to submit all of the requested information. Every form that’s needed has to be provided, too. The forms are really useful. When arbitration is necessary, they can assist in resolving disagreements.

Verify your arbitrator’s authority

To ensure impartiality, arbitrators need to be unaffiliated. This is to ensure that there is no room for bias. An arbitrator’s primary responsibility is to decide cases fairly. Otherwise, legal action may be taken. They must also act quickly to reach decisions.

·         Arbitration is the duty of the HHG mover.

·         It’s important to verify that the arbitrator is authorised.

·         Learn how much the shippers are required to pay.

The arbitrator is in charge of calculating the percentage of each party’s order that will be paid out. However, when it comes to arbitration fees, keep the following line in mind. An arbitrator has ruled that the shipper cannot pay more than half the award.

Recognize the conditions of disputes

One major activity is prohibited for HHG movers. If a dispute arises, they can’t require shippers to agree to arbitration in advance.

The rule of $10,000

If a Shipper files a claim for arbitration, the arbitration process will begin. The quoted tariff of the HHG mover is therefore responsible for claims under $10,000.


Let’s say the claims total over $10,000. As a result, the HHG mover must participate in the arbitration process. However, take in mind the following.

It is the shipper’s responsibility to seek arbitration. The household goods mover must agree to participate in the arbitration programme.

Revised and New Rules of Arbitration

A number of carriers have elected to delay award payments in the past. Because of this, the new Rule 22 is being implemented. Award payments are clearly defined in this document.

New Rule 22: Arbitrator’s Decision and Award Satisfaction

Let’s take a look at the new standard performance term for awarding any decision. It has already been 45 days since the date of the Order/Award, which is the commencement of this period.

The Order of the Arbitrator is also subject to this rule and the 45-day grace period. The sole exception to this rule is if the arbitrator specifies otherwise. There are two exceptions to the concept of a regular performance payout period. Rule 24 and Rule 25 are two of them.

Let us suppose that one of the parties seeks to have Rule 25/Reconsideration of Awards or Orders applied to him or her. This signifies that the normal time frame for performance is 45 days. Date of Final Order/Award is when the countdown begins. This applies to the Arbitrator’s final Order or Award.

You should be aware that the new Rule 25 was formerly known as Rule 23. This paved the way for Rule 24 to take effect. The $200 administrative fee is waived as a result of these changes. This charge was for FORUM’s clerical errors.

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