Should I file on this broker's bond, or wait and see?

I’m very curious who it is . We run New York a lot from now till fall... I know it a outfit out in Dunkirk that is very risk in the past that go by two different name just can remember right now ag /Jacob maybe ???

 

Was it an exempt commodity or not? If it was, the bond won't cover your load. Exempt would be raw produce, for example. Even when dealing with a broker who has a payment bond, it probably won't cover exempt commodities.

If it is not exempt, the only time it makes sense to file a bond claim right away, close to the 30 day mark, is if the company appears on the Baxter Bailey email or their DAT credit report (comes from Ansonia) has suddenly tanked since you accepted the load in the first place. Something that would legitimately suggest they aren't just late, but will never pay.

Otherwise, I will file a claim on day 60. That's enough time to get past bogus excuses like the holidays and show more than good faith on your part to collect. Keep in mind that a claim will take (even more) time too, and extra effort on your part. You'll have to complete a lengthy claim form, document your collection efforts, and supply all relevant documentation about the load. Once the bond company receives it, then they'll take another week or so to evaluate the claim before taking action. If your claim is approved, the check is usually cut immediately by the debtor since they want to avoid the loss if the bond pays.

They operate under about 5 different companies. I was suspicious at first until getting to know Chuck Sam, the guy that either is the owner or at least a principal. He seems to call the shots in the office. He's not a bad guy. Communication can be awkward. Chuck is about deaf, and the only one of about three in the office who are native English speakers. Most of their customers are Asian food outfits, and about everyone in the office is Asian and not good with English. If you can work around that, they're good folks to deal with for the most part.

They got slow on me one time in about 3 yrs of hauling for them. We got it worked out, they had a run of slow cash flow too at the time. It didn't help that I had coincidentally gotten about 3 loads deep with them and was suffering some tight cash flow too. Truth be told, I like Chuck personally despite that hiccup, and would haul for him again should the opportunity arise and the rate be where I need it. Unfortunately (or fortunately depending on how you look at it) his rates tend to be on the cheap side. Not surprising given the product is cheap to begin with, and also about one of the least risky types of produce you could ever haul in a reefer.

Jacob Logistics is their exempt produce business entity, mostly shipping cabbage. Exempt commodities do not require a broker mc or bond. This is why produce shipments are extra risky, beyond temp control and product quality. They also operate at least one or two non-exempt brokerages and a trucking company at the same address.

 

Here’s the thing I’ve been noticing too; some companies may cut the check before 30 days, but not get mailed out for a couple of days + mail transist time pushing the actual in hand date to about 40 days. Or they may only mail checks once you a week, so if your 30 days is up on a Monday and they only mail checks on Thursday... then there’s that factor. Then you got customers who want to count 30 business days which of course is much longer than 30 calendar days. But they pay.

But it sure does make other customers shine through, the ones that pay in 20 days or less. We make take one of their loads for a little less because we know the payment will be prompt.

 

call Greedo offering 20% will get your money

 

Well, you already suspected you weren't going to get detention. I had someone do that to me as well and I did exactly what you're saying, namely squeeze it out of them the next go around on the rate side. In fact, I have several brokerages I do business with where when I found out they slow pay, I just jacked up my rate to compensate for it.

 

They want to hang on to that money as long as they can.

Some of them will cut the check on 20 days like the contract says. They hold it 7 more days before it is mailed ( post-mark tells the story) so it actually turns into 30 days.