Is Hub Group going under?

we work with them often have not had a problem recently..did you call the A/P dept and follow up?

 

I still have an unpaid TONU from them from Christmas, but that's probably just because they are ########.

Financially, they don't appear distressed: they have been negative on cash flow for over a year, but still under their cash reserves ($80 M negative cashflow for 2016 vs $127 M in cash on hand December 31). Their debt level is rising, but still under 1/3 of their equity.

 

One of my invoices is creeping into 50th day now with Hub... So is JB Hunt.

 

Bonding companies charge brokers based on how risky they are. Brokers typically see two types of claims against their bond 1) justified and 2) unjustified. Justified claims are claims that they are going to lose and unjustified are the ones they have paperwork to back up so that they won't have to pay. If it's 1) they have a lot of good reasons to just pay immediately and be annoyed that it got that far.

Make sure you don't file against people's bonds in borderline situations. That's not what it's for and it's not exactly a friendly thing to do. Most (if not all... every brokerage I've ever worked for) brokerages will 100% guaranteed black list you for filing against their bond justified or no. If you file in an unjustified way, even against a smaller brokerage, there's a reasonable chance that they will be looking to retaliate against you. Bigger brokerages will just turn you off and consider the matter settled, but smaller brokerages are often run by somewhat volatile freight brokers who can get really nasty about stuff like this.

 

How would they retaliate? Can't imagine carrier not blacklisting them too.

 

Interesting. You mean they will send a message to other brokerages (some kind of alliance) to mark your MC#? This would seem very conspiratory and limited in its effects. If I ever came to filling against someone's bond this by itself would mean not dealing with such a brokerage again. So how would they retaliate? I think Dune - T waited long enough and tried to resolve it peacefully. They cannot just not pay.

 

Although, I understand that some scumbag carriers, which there are many of, could file claims frivolously, without any justification.