Would a 'Receiver' ever pay the Carrier directly?

Discussion in 'Ask An Owner Operator' started by hkronick, Dec 11, 2012.

  1. Dec 11, 2012 #1
    hkronick

    hkronick Bobtail Member

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    Dec 11, 2012
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    Hello All,

    I'm new here and a bit of a noob, but am looking to get involved with the forum. I am wondering if any of you have had experience getting paid directly from a receiver of goods rather than a broker or shipper. If I understand correctly, the shipper will often add a 'freight fee' to the receiver's total goods bill. Would it be possible for this 'freight fee' to somehow go directly to the Carrier instead of the Shipper having to collect it later? I would like to know clear road blocks that would stop this from happening.

    Any insight would be greatly appreciated!

    Thanks!
     
    hkronick, Dec 11, 2012
    hkronick, Dec 11, 2012
    #1
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  3. Dec 11, 2012 #2
    special k

    special k Light Load Member

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    Sure a lot of times its refered to as a customer pick up. Sometimes it gives you a little more pull at the shipper because you work directly for the customer and the shipper may not want to tick the customer off. Especially if they know the customer can get the same product down the road.
     
    special k, Dec 11, 2012
    special k, Dec 11, 2012
    #2
  4. Dec 11, 2012 #3
    Sumothertrucker

    Sumothertrucker Light Load Member

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    It all boils down to who is paying for the freight? Some receivers will try to control costs buy shopping the transportation or it may be a dependability factor to assure they get it when they want it. More times than not however the buyer just places their order and lets the shipper take care of lining up a carrier.
     
    Sumothertrucker, Dec 11, 2012
    Sumothertrucker, Dec 11, 2012
    #3
  5. Dec 11, 2012 #4
    G/MAN

    G/MAN Road Train Member

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    We used to haul for a shipper where we had to pick up a check from the receiver on all their loads. The check was made out to the carrier and other than the shipper calling us for the load, they were not involved. We have also had a few loads over the years where we had to pick up a check from the receiver.
     
    G/MAN, Dec 11, 2012
    G/MAN, Dec 11, 2012
    #4
  7. Dec 11, 2012 #5
    hkronick

    hkronick Bobtail Member

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    Dec 11, 2012
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    Thanks for the replies. Is there a reason why this isn't done more often? Would you guys prefer this method (receive payment from the receiver as soon as you have delivered)? It seems like you wouldn't have to worry about collecting from a shopper or broker.
     
    hkronick, Dec 11, 2012
    hkronick, Dec 11, 2012
    #5
  8. Dec 11, 2012 #6
    special k

    special k Light Load Member

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    I think back in the day it was more common. I delivered carrots one time for deer feed that was COD. I also worked for local farmers delivering produce and had to get the check/cash before leaving. It can turn into a huge hassle. Plus you have a driver running around with a check that has to get back to the co.
     
    special k, Dec 11, 2012
    special k, Dec 11, 2012
    #6
  9. Dec 12, 2012 #7
    Allow Me.

    Allow Me. Trucker Forum STAFF Staff Member

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    There are many variations of this. A "receiver" or, the customer orders the product from the manufacturer and the manufacturer deals with getting the product to the customer. The product cost $100k for instance and the manufacturer arranges transportation and either adds this fee to the order or has it built into the selling price. A lot will depend on the arrangements the buyer and seller have and how much business they do.

    Sometimes you see the word FOB in an add, for instance. This means "free on board" which means the selling price is customer pick-up at the manufactures place of business. Any transportation costs will be added to the selling price. So the customer can arrange for getting the product to his place of business or his house.

    So in regards to the trucking business, if you, the O/O are working for the buyer as his transportation agent, you can bill him directly and the manufacturer is out of the loop.

    And the manufacturer, on the other hand, can use whatever means he chooses to get the product he is selling to the buyer, meaning he chooses what carrier to use (directly) or maybe use a broker to deal with it. You need to understand that this is where there's a golden opportunity for carriers to shine. Any manufacturer wants his product picked up AND delivered on time, no damage, no excuses. So carriers that don't live up to expectations are gone, right ? Happens every day in this biz. Service and rates, no matter who pays.
     
    Allow Me., Dec 12, 2012
    Allow Me., Dec 12, 2012
    #7
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