TRUCKER TIP of THE WEEK
RULE# 102: READ THE BILL OF LADING
Shippers are attempting to be more sophisticated in their efforts to evade liability these days by adding language to their Bill of Ladings which state the “Carrier agrees not to hold the Shipper and/or Consignee liable once the freight charges are paid to the Broker.” This can only be considered an attempt by the Shipper to avoid consequences for their neglectful hiring process regarding their selection choice when hiring a broker. It most certainly raises the question if the Shipper is complicit in the broker’s scam in an attempt to avoid paying costly shipping charges annually considering the added language’s preemptive nature.
The problem is by the time the Carrier obtains the Bill of Lading, usually the deal has already been made with the broker, and the Carrier is at the Shipper’s address to pick up the freight. So what is the Carrier supposed to do, not accept the load? The answer is yes, refuse to take the load unless the Bill of Lading does not reflect the Shipper and/or Consignee’s forced indemnity. If the Shipper or Broker is upset, they have to understand the Carrier’s paycheck should never be at risk as their added language suggests.
If the load is accepted and delivered with the added language to the Bill of Lading, and the Broker fails to pay the Carrier, the Shipper and/or Consignee will absolutely attempt to rely on the added language to evade liability, and if the amount owed is typically less than $4,000.00, it is very difficult to find an attorney that will file suit against the Shipper and Consignee to prove they are in fact liable, regardless of the added language that conflicts with Federal Law. That said, always read the Bill of Lading to ensure you aren’t agreeing to indemnify the Shipper and/or Consignee.
If you’re suffering from unpaid freight invoices, call our office immediately for a free consultation. We may be able to help recover unpaid freight charges that your company is owed, risk free!
Trucker Tip:
If you have a company representing you with getting your money recovered, it would be advantageous to be honest and thorough about why you were not paid.
When speaking to debtors, our collections department run into obstacles at times due to lack of information provided by clients. This delays, and sometimes prevents, us from successfully collecting debt that is owed to clients.
Remember, many debtors have no issue with throwing you under the bus as an excuse to not pay. Do not give them the advantage!!!
We can recover the amounts your company is legally entitled to, even if the broker who hired you goes out of business!
ALWAYS KNOW WHO’S FREIGHT YOU ARE TRANSPORTING:
For whatever reasons, some loads are picked up from, or delivered to, other transportation companies. These transportation companies most of the times are not the beneficial owners of the freight. Delivering carriers should be aware that the beneficial owners of the freight are liable to ensure the delivering carrier gets paid. This is typically the shipper and consignee. However, if the shipper and/or consignee doesn’t actually own the freight, they can’t be held liable. If your shipping documents don’t notate the owners of the freight, you may be jeopardizing your freight payment.
It’s easy to hold shippers and consignees liable for unpaid freight charges if the shipping docs clearly notate the freight owners, but if the shipping docs only notate a warehouse, cross dock, or other transportation companies where the freight was picked up from or delivered to, the chances of a successful recovery of the freight charges you are owed becomes significantly more difficult.
If you have anything on your aging reports over 90 days, be proactive and let us help you get your money recovered. I have too many clients who will wait until their debt is out of stats, then send us the debt, just for us to have to respond that legally, there is nothing we can do.
Even if you are waiting on money from a bankruptcy. We can help you burn the candle at both ends to ensure you recover your money.
If you are having any issues getting your money recovered, contact me, and I can set up a time for a free consultation to see what is going on and if we can help.
Stay safe out there and try to keep positive!
During this national crisis regarding COVID-19, the demand for carriers is at an all time high as stores are experiencing issues keeping their shelves stocked. At times, shippers are paying double to ensure their freight is delivered during this time of shortage of carriers.
That said, scam artists are currently looking to broker as much freight as possible to double down on the amount of money they can steal. Motor Carriers and Freight Brokers alike should approach any new unfamiliar broker or carrier with caution within the coming 90 days.
If your invoices haven’t been paid within the next 90 Days, or if you are currently holding any unpaid freight invoices on your aging report, please contact our office immediately. If not, please consider saving our contact information as you may need our help recovering your unpaid freight invoices after the next 90 Days.
Whether you are filing a claim of nonpayment, or if you have had a claim filed against you for "loss, damage or delay of cargo", we can help protect your company's best interests.
https://www.kizer-schwartz.com/
