Breakdown Middle of run

The people I'm with have a deal about repowers. You will get paid the portion of the ld. for the miles you hauled it.Depending on the breakdown and time frame you have.
We do alot of crane ld. and crane off ld. Those late fees can really add up if late..
Most of the times we can reset our del. date..

 

let's call that load held hostage,lol.

 

That is all true except for one word - legally. You must be taking legal advise from Wesly Snipes attorney.

 

It's legal. Read section 7, the uniform straight bill of lading literature will explain your rights as a motor carrier. It never ceases to amaze me how little indies know about a business they've invested in, it's a big reason why this industry is so screwed up.

 

So that people don't read this and go out and start doing this I thought I would clarify what he is talking about.

The Uniform Straight Bill of Lading has been around since early 1900's (and maybe before that). It was used because it is internationally accepted and tested in courts around the world. Still heavily in ocean freight. But since deregulation it is rarely used for standard truck loads. I did a quick scan of 40-50 BOLs I have on my computer and not a single one used this form.

But the section Uncle Grumpy is talking about would likely be 7(c) that gives the carrier the right to negotiate terms. It does not give the right to hold cargo and demand payment if the terms have not been negotiated before hand or you are just unhappy with the terms.

Not to mention that most freight is moved with some other contract in place and that would take precedence over this.

Other note regarding civil and criminal. The "Glendale Carrier" was a group of carriers out of Glendale, CA. It was actually being run by one man. He would hold freight hostage until the broker wired money into an account or comcheck, etc. The FBI did a sting and he and several others are doing federal time for this.

 

Sometimes people get confused about when it is legal. If you are under a continuing contract(shipper with one contract for all)not by the load,and they fall behind on the payment terms in the contract then you can hold for payment. Brokers are a per load contract(each load is seperate)and they haven't violated the payment terms untill they haven't paid you. Can't change the payment terms without agreement from both party's. Like getting a loan and before the first payment the bank wants all their money. In practice it's done all the time,not a criminal act but civil unless proven it was done with intent to defraud.

 

Well said, wichris. Speaking with my attorney and mentioned this thread and he said that if you are picking up a load and there is a sign that says "going out of business sale - final days" then you have a good faith reason to renegotiate terms.

But if they can prove your intent was to get the load and then make a call that you won't deliver until you get fuel money or it is now COD then it is fraud, plus a few other things they will throw in.

 

You need to renegotiate before you load. Something to remember is what you think is a continuing contract may not be. To be a continuing contract means that there is no price negotiation per load. You must have set rates for lanes except fsc,acc. Or some means that the customer will know the cost beforehand. A spot rate is a seperate contract,even with the same shipper. In reality if someones holds a load hostage there is not much you can do. Take it to civil court? You know the saying,blood from a turnip. Your customer will come after you for the loss of sale,thats who their contract is with. For all intents,it's non-insurable without specific riders.

 

Best advice that was given to me from my insurance agent and a couple brokers is to make sure you have contingent insurance. Then if one of these companies tries to hold a load hostage you first call your local police and file a report. Then you call your insurance company and file a claim for a stolen load. Third call is to the customer to alert them that the load was stolen by the carrier.

By this time the insurance companies are trying to reach the carrier informing them what is taking place. A broker that has been doing this since deregulation says he has had this happen over a couple dozen times and every time this process has resulted in the load being delivered. And half the time a claim is made on his bond within 15-days as a poor attempt at retaliation.

Crusty old truckers and brokers have the best stories over a couple or 6 beers.