Mode of Shipment. Products shall be shipped by Hitachi F.O.B. Hitachi's warehouse. Shipments shall be made to a Distributor's identified warehouse facilities or freight forwarded. Unless specified in Distributor's order, Hitachi shall select the mode of shipment and the carrier. Distributor shall be responsible for and shall pay all shipping, freight, and insurance charges, which charges Hitachi may require Distributor to pay in advance.
Risk of Loss. Products shall be identified to the contract and all risk of loss or damage for any Product shall pass to Distributor upon delivery by Hitachi to the freight carrier, Distritbutor, or Distributor's agent for delivery, whichever first occurs.
Prepayment of Freight. Freight is pre-paid by Hitachi on any individual order for Products with a net value of US $2,000 or more (calculated at 50 percent off list price), exluding fasteners. Additions to orders already processed or shipped will be handled as new orders and will not be added to the original order for qualification for free freight. No allowance will be made in lieu of prepaid transportation if Distributor accepts shipment at Hitachi's warehouse or freight station; transportation charges will not be deducted from the selling price.
Partial Shipments. Hitachi may make partial shipments of Distributor's orders, to be separately invoiced and paid for when due. Delay in delivery of any installment shall not relieve Distributor of its obligation to accept the remaining deliveries.
Delivery Schedules. Hitachi shall use reasonable efforts to meet Distributor's requested delivery schedules for Products. Should orders for Products exceed Hitachi's available inventory, Hitachi will allocate its available inventory and make deliveries on a basis Hitachi deems equitable, in its sole discretion, and without liability to Distributor on account of the method of allocation chosen or its implementation. Should Hitachi allow Distributor to place an item on back order, such orders will be filled or allocated in order of the date placed by Hitachi's various Distributors, oldest first. As the length of time an item has been back ordered increases, Hitachi will contact Distributor about the status of the back order and may ask Distributor to confirm either cancellation of that order or its continuation on back order status.
Shortages. Any shortage in shipments must be noted on the bill of lading or receiving document when Products are signed for and received by Distributor. Concealed shortages or hidden damages must be reported to Hitachi within five (5) days from Distributor's receipt. Proof of delivery must be requested within ten (10) days from invoice date.
Loss or Damage. Claims for shipping losses or damages must be settled between Distributor and the carrier. Hitachi will file a freight claim as a courtesy to Distibutor if Hitachi receives a report within ten (10) days of the invoice date which includes (i) a copy of the bill of lading or receiving documents listing shortages when Products were signed for and received by the carrier's inspection report.