Hauling for Direct Shippers

Discussion in 'Freight Broker Forum' started by joker760, Feb 21, 2013.

  1. 6wheeler

    6wheeler Road Train Member

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    From all the direct shippers I have hauled for, I think the longest I had to wait for a payment was 2 weeks. One of my customers that pays me right away tells me that he has to settle up with all UPS shippments in like 14 days or something. Funny thing is, all of my direct shippers pay like within a week or less, and some of the brokers I call up say they pay 20-30 days from receiving BOL.
     
    joker760 Thanks this.
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  3. x-dispatcher

    x-dispatcher Bobtail Member

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    Feb 21, 2013
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    UCC rules state that carriers must be paid within (15) days of invoice, that however does not mean this is going to happen as we all know. A lot of shippers who are moving a LTL with carriers such as FEDEX, CONWAY or UPS do pay them in (14) days so they can get the discounts. They do provide (30) day billing though. Freight Brokers want the carrier generally to accept "Quick Pay" if it is offered by them as this is an additional "Profit Center" for them. They generate an extra 5%-7% of revenue from the gross because of it. They realize that a lot of Owner Operators are working on thin margins so they take advantage of it. There is a way around that though. Just as Freight Brokers send you a "Broker Carrier" contract to sign and also a "Rate Confirmation" you can send them a "Terms Of Carriage" to sign which will outline the terms in which you will haul the freight. Yes you are agreeing to the rate they have quoted but it comes with conditions. The main one being payment. If you provide them with the "Terms of Carriage" and you have a few caveats in those terms such as when the payment is due, premium rates versus discounted rates, and also freight liens you will rarely have a problem with payment or collections. They might not want to sign it and you stand a chance of losing the load, but you have to remember "Freight Broker's exist only because of the Carrier" needing freight.
     
  4. wichris

    wichris Road Train Member

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    15 days to pay only applies to loads hauled under common authority(377.201(b)(1). Contract authority is whatever two parties agree on.
     
  5. x-dispatcher

    x-dispatcher Bobtail Member

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    Feb 21, 2013
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    You are correct. I had a lot of random thoughts on my mind as I was posting. Thanks for posting that.
     
  6. joey7119

    joey7119 Light Load Member

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    May 30, 2008
    baltimore, maryland
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    good to know.thanks
     
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