Accessorial problems

Dragging out payment of accessorials is a common tactic of less than reputable brokers. The hope is that you'll either forget about it or just cave in frustration and move on. I'm not saying that's whats happening here, but it does happen. The other cause of delays, in my experience, is when a young broker is afraid to tell someone something that they don't want to hear or afraid of confrontation. As in "the layover was denied". Sometimes young people will drag it out unnecessarily to avoid the confrontation.

 

Like most questions you ask, the answer is "What does your contract state?"
95% of everything you ask should be in the contract you created.

 

Don't wait for their customer BS. THEIR CUSTOMER is NOT YOUR CUSTOMER. Read your agreement with them. It will most likely even spell it out that you are NOT to bill THEIR CUSTOMER. So whether or not they get paid is not your problem since you are contracted with the broker, not their customer. If you have all you need in writing, even in an email...invoice them. Don't wait. Give it 30 days. If you don't have a check in your mailbox on the due date on your invoice then file a claim on their bond immediately.

In the future, word your accessorial policy in a way that spells out that YOU determine everything and that the BROKER is responsible for the charges not THEIR CUSTOMER. You are contracted with the broker, not their customer. Also, relying on anyone but you or your driver to determine in/out times will eventually get you burned too.

Here's a copy of my policy if you want something to brainstorm on...

"Detention Policy: Two free hours on all stops before hourly rates begin. All hourly rates are billed in fifteen minute increments of $100 per hour. In/out times determined and invoiced by Carrier only. If Broker or their customer declines to contract Carrier for said detention charges after the allotted 2 free hours have passed, or otherwise exhausted a cancellation fee will incur.

Multi-stop Policy: All stops (except origin and final destination) will incur an additional $200 per stop.

Tracking/GPS/Live update services will incur a $150 fee.

Cancellation (TONU) Policy: Any and all orders canceled (or significantly altered) by any party regardless of reason, will incur a cancellation fee of $250 if order is revoked (or significantly altered) after signed rate confirmation has been sent and/or received by Broker and/or Carrier.

Layover/Overnight and Storage Policy: Moves requiring freight to remain on carrier’s trailer and/or at carrier's storage facility due to terms not arranged prior to event will incur a Layover, Overnight and/or Storage fee of $250 per night. Storage rates are $250 for the first 24 hours and $15 per hour thereafter.

All accessorial charges are due regardless of whether or not Broker is paid from their customer. As per our Agreement, the Broker solely is responsible for all freight charges…not their customers."

 

I routinely hear, "my customer doesn't pay detention". My response is usually, "well, your customer is not my customer so your arrangement is none of my business. I, however, do charge for detention and if you don't want to pay then find another truck OR make sure I'm loaded/offloaded within two hours." I'm often pulled out of line while others sit or scheduled so I'm in and out quickly.

Funny this should come up because I haul from a particular place that uses multiple brokers to get their freight moved. I've loaded there about 4 times and have had numerous offers for loads out of there too. Three different brokers have made offers and/or paid me to make those moves. The one that uses me most pays me detention, the second agreed to my policy but their credit was bad so I ended up not taking the run and the third said the shipper under no circumstances will pay BUT he called me back later and hired me to make the run anyway while agreeing to my terms.

So that's three separate brokers willing to pay detention either from their cut or somebody's lying. Probably a mixture of both!

 

So I adopted, then adapted, an accessorial policy. At first, I included it with the ratecon. I had an unhappy broker claim I "ambushed" her. Since then, I have attached the policy with every contract. Then it's done and on file and I haven't received any other complaints.

I also feel free to redact any line in the ratecon I disagree with and then send it back to the broker, signed. That same email with the returned ratecon also ends with, "Thank you, truck is dispatched."

Now the truck is eligible for TONU.

 

That's more commonly known as an addendum. If the other party hasn't signed it or otherwise agreed to it in writing they can walk away as if it doesn't exist and not pay a dime on it. The rate con is usually the most important document second only to the BOL because most contracts state the rate con takes precedence over the contract due to it's unique variances from load to load and market conditions.

 

Thanks for the knowledge. Do you recommend I continue to attach the addendum to the ratecons as well? One other user here had his lawyer look at it and said there is precedent to uphold it in court. If they accept the email with the addendum, it's binding.

Is there something I missed in that thread? Thanks much.

 

Not sure what thread you're referring to so I can't comment on it with certainty. Anyway, if they accept it and later pay then it's binding but they could also take the stance that since they never signed it they aren't paying (if they haven't paid you yet). Which would be legal for them to do. Contracts or agreements need to be agreed to by both parties to be legally binding.

All I'm trying to say is I prefer to make it an ironclad open/shut case on my end so no BS disputes can arise later down the road and make sure the other agrees in writing somehow. It could be as simple as having them reply to an email or the old fashioned signature route. But either way, the only way to get it 100 percent in your favor no matter what is a written acceptance from their side in some fashion. This is good food for thought for anyone reading this thread really.

Also, addendums are kind of a, one and done deal. Do you never adjust your accessorial rates? If you do, you'd have to keep sending new ones to reflect the changes for things that require payment. I find it's easier to do it on a load to load basis myself. TONU is a good example for me. If it's real close to my yard I only charge $150 but if it's further out I raise it accordingly. If that was set in stone in a one time addendum submittal I'd have to go through the process again to send another in.

Of course, as I've mentioned earlier each contract is worded a little differently. Some make it so the contract itself has the final word while others put more emphasis on the rate con since it's an extension of the main contract. Most however, have it worded so the rate con overrides the contract completely. That's the one I focus on all the time no matter what. I'm set up with over 100 brokers and personally I can't keep track of all the idiosyncrasies between them contractually. It's easier to do it all on the spot on a load to load basis. Easy peasy and all legal requirements are met so I get paid when the time comes.

Their contracts and agreements are set up in their favor easily 99 percent. IMO it's commercial suicide to not do the same on our end when it comes to getting paid for all of our services.