When a broker is past due on payment...

I thought I read somewhere that brokers are supposed to pay the carriers in 14 days. I thought there was something in the regulations about that.

 

That reg does not concern brokers. It's 15 days for contractors leased to a carrier.

 

It really is a balance. Remember, a lot of the brokers you are talking to are agents of larger companies and have not control over how you get paid. They can be great, give you a good rate and treat you with respect. And then the AP completely drops the ball.

The trick is figuring out if the AP people are playing games or the system is just slow and limits them. Many times I have sent invoices to the fax or email that I thought was correct and then to learn when I was trying to collect I had the wrong e-mail/fax and the clock hadn't started.

That is why I do the three day call to make sure that they have what they need and to stop the game playing.

A good company that may tell me at 30-days they don't have what they need and I show them how I had sent it a couple times will push the payment through. The game players will hold firm and then it gets escalated.

There are a couple main bond companies. If you fire off a claim on everybody that is 35 or more days you will get know and not taken seriously. It works against you.

But, a broker that gets a lot of claims and then pays becomes a risk to the bonding company and they will raise the rates or cancel them. Brokers know this and don't want it to happen. But some times that is what it takes to get some to pay. And when that happens you need to stop doing business with them.

 

Under common carrier shipper/broker/freight fowarder is 15 days.
Under contract carrier any term agreed to.
Exempt freight affects neither one.

 

And if you want to add more to it the carrier must submit Original BOL's and invoice within 7 days(excluding weekends and legal holidays).
(b) Payment by mail. When shippers mail acceptable checks, drafts, or money orders in payment of freight charges, the act of mailing them within the credit period shall be deemed to be the collection of the tariff charges within the credit period for the purposes of the regulations in this part. (c) Disputes as to date of mailing. In case of dispute as to the date of mailing, the postmark shall be accepted as such date.

 

Are you thinking based on the UCC Uniformed Bill of Lading? My understanding is these terms are only good if that document is actually used when shipping.

 

I can relate to this on both ends. I've called shippers and let them know I haven't been paid, it will light a fire pretty quick. On the other hand, i've been victim to a load I brokered being brokered and the truck who hauled not being paid after I paid the "truck" who DB'd the load on me. That was about 8 years ago. I got a call from my customer and that day I sent a check to the truck who hauled the load. Lost $1800 on that deal. And the truck that one of the guys used was from the 'Singh' family...back then that name was synonymous with opening up shop, getting as much cash as they could, shutting down, rinse and repeat. The nigerian scam of the trucking industry when load boards were a lot more "new".

To the OP, there's a lot of ways to check how long it takes to get paid by a broker... probably the worst way to find out is by asking the kid who brokered the load, most brokerages have someone in A/P who can answer that question a lot better, but I rely on TransCore, they're pretty accurate. A word of advice: if you're mailing your bills, net 30 to the broker might mean to them the day they receive your invoice. Most companies are setup now to receive your BOL's and invoice via fax, email, etc. You can hold their feet to the fire on "net 30" when you're not 'supposing' that the bill you put in the mail on a Thursday afternoon will arrive the following Monday.

I'm getting a little off topic here, but this is one of the reasons guys haul cheap freight. i.e., if you've got $20K floating out there and you need a cash infusion quickly, large brokerages will pay you within a few days (factor).

 

It's all pretty moot anymore. Many of the reg's went out the door with de-regulation even though they still are in the cfr. All pretty much a contract situation today.

 

I haul stuff. 8 figure stuff sometimes. I ask & get a cashiers check for X amount. This is not Burger King. No I am not that creep on that show. I kiss booty. Once the cargo is loaded, I'm gone. There happy, & I make a nice pay check. You have to be a people person as well as a driver. Those that don't, don't make it in high end transport. 390,00.00 is nice. Just saying.

 

I'm a private carrier. You want you stuff there, That's why they called Me. Help Me. Tell me what you want.
This car is perfect. The Table, and glass ware are in our hands. I will suggest where to load it. Give me your thoughts. Get them involved. Make them help. Make them part of the effort. it makes a difference. I want Thunder Transport to move my things. I want Tramp to move them. I smile