Carrier payment timetable

Discussion in 'Freight Broker Forum' started by Dino soar, Oct 16, 2018.

  1. Dino soar

    Dino soar Road Train Member

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    I thought that I read a long time ago somewhere that there are federal regulations that carriers are supposed to be paid in 14 days by the broker.

    I thought that I read that somewhere in the regulations from the government as far as what's required for brokerage and motor carriers and all that type of thing, but I really don't feel like sifting through all that information again.

    Does anybody know what I'm talking about or am I thinking about something else?
     
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  3. Freddy57

    Freddy57 Road Train Member

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    I've never heard of such a regulation.
     
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  4. Dino soar

    Dino soar Road Train Member

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    I guess I am mistaken.

    Maybe I am thinking of payment to someone leased to a carrier.
     
  5. SteveScott

    SteveScott Road Train Member

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    I think the law says more like 7 days. :)
     
  6. Dino soar

    Dino soar Road Train Member

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    I guess I'm just having a brain fart all the way around...
     
  7. redoctober83

    redoctober83 Road Train Member

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    The 14 day's you're talking about is with regard to the carrier paying any driver leased onto the carrier within 14 days of all the proper paperwork being submitted to the carrier and the load delivered.

    There are regulations listed in the bill if lading that dictate payment, but you most likely waived those rights, along with many others, when you signed the broker/ carrier agreement to haul the load. Something most small carriers do without realizing.

    For example, this week alone I turned down 2 brokers because of the clause in their agreements. One broker went so far as stating on the rate con that the carrier is responsible for all damages to the freight, damage to the products container and freight shortages. I'm sorry but damage happens to products container that is not the carriers fault.

    Another clause was the carrier was to insure and physically count each piece to verify the total number of each item was packed on the pallet. For example, the carrier was suppose to count every straw in a box to verify it was correct before it went on the trailer. If the carrier didn't, carrier was solely liable for ALL shortages regardless of shippers fault.
     
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