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KLLM, INC. RULES CIRCULAR

Item 1020

STATEMENT OF SERVICES PROVIDED
TEMPERATURE-CONTROLLED SHIPMENTS
(OPERATIONS CIRCULAR #100)

This circular shall establish general ground rules for the transportation by KLLM of both regulated and exempt shipments in interstate, intrastate and foreign commerce. These ground rules shall apply unless expressly waived by KLLM in a signed, written agreement.

1. Notice of Temperature Control. Customers of KLLM shall provide carrier written notice of any temperature-control requirements at the time the load is booked. Customer shall specify a range of temperatures of not less than 10E Fahrenheit, which shall also be communicated to the driver at the time of pickup and which must be noted on the bill of lading by the consignor.

2. Precooled Requirements. Consignors warrant that all temperature-controlled shipments have been properly precooled to the appropriate temperature for transportation is shown on the bill of lading prior to tender. Mechanical refrigeration units on trailers are capable of maintaining normal temperatures during transit but are not intended to raise or lower the temperature of shipments.

3. Consignee's Duty Upon Delivery. The consignee shall accept delivery of all undamaged products and shall immediately remove all shipments to appropriate temperature-controlled storage areas. In the event of temperature damage noted at time of delivery, consignee shall (1) make appropriate exceptions on the delivery receipt; (2) segregate and protect the damaged product, providing immediate notification to the carrier; (3) make arrangements for USDA and/or carrier inspection; and (4) follow salvage procedures as otherwise specified. Each consignee shall accept the common-llaw duty to mitigate damages.

4. Presumption of Temperature Damage. Evidence of damage due to temperature as a noted exception to a bill of lading at time of receipt when coupled with evidence of tender in good order shall create a rebuttable presumption of carrier liability. This presumption may be rebutted by inclusive evidence showing proper temperature maintenance during transit.

5. Reasonable Dispatch. Carrier shall transport all shipments in accordance with reasonable dispatch as defined in paragraph two of the uniform straight bill of lading.

6. Miscellaneous. KLLM’s general rule circular shall apply to temperature-controlled shipments to the extent not inconsistent with this circular. For information, see www.kllm.com.

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