Signing paperwork

Broker/Carrier contracts are always negotiable. I line out and modify quite a few contracts. Most of the time no one has an issue. On occasion a broker doesn't like it and I am not willing to risk my business and lively hood for a one sided contract.

By law it's the carrier that should be providing the broker with the contract. Just like it's suppose to be the carrier that provides the shipper with the BOL. Most of the BOLS that are provided by the shipper are filled out wrong, list the broker instead of the carrier which can cause serious problems down the road with regards to claims and insurance. Have you ever read the BOLS? There is a clause in most of them that says “Subject to Section 7 of conditions of applicable bill of lading. If the shipment is to be delivered to consignee without recourse on the consignor, the consignor shall sign the following statement: The carrier shall not make delivery of this shipment without payment of freight and all other lawful charges.” Most carriers don't read this and make delivery. If a broker, shipper or consignee wanted to play hard ball and not pay you, all they have to say is "you delivered it and per this you must have been paid since you are empty."

 

My point though is if the Broker doesn't agree to my terms they don't work with me and vice-versa. I routinely cross things out on contracts too and don't make a move until I have said contract returned with a signature on it. I'm also working on creating an addendum as well. Now, if I put something claiming Carrier is not responsible for damages that isn't going to fly. They're going to walk due to it being one sided just like I would do. Can't blame them for that.

In your hypothetical scenario about the Shipper hiding damaged freight in with non-damaged freight there isn't really a clause nor addendum that wouldn't be wholly one sided to protect the Carrier from such actions that a Broker would normally accept. That's a fraud situation and I think other measures would have to be in place for such an event. In many situations the Driver isn't allowed to witness the loading/unloading of dock freight so SLC BOLs have to help in some way here. It seems like a catch 22 to me. ###### if you do and ###### if you don't.

How exactly does this cause serious problems with claims?

That would never fly. First, they most prove I've been paid. Secondly, payment terms are not pre-paid nor COD and my terms are on every contract for NET30. Finally, every contract I've ever signed requires POD to get paid so I couldn't be paid BEFORE I had the POD in hand.