Breach of load sheet

Henry

Active Member
#1
I am having an issue with a carrier. He agreed to be paid at 30 days. Now that he has picked up my clients shipment, he is demanding payment now, before he delivers.

Does anyone have any suggestions and is this legal?

I have not told my customer yet and i do not want to lose him as a customer.
 

loaders

Site Supporter
#3
Henry, that is what we call, "holding your freight hostage". You did not elaborate as to why this carrier has had a change of heart regarding the payment terms. In any event, as lowmiler88 suggested, pay the guy, get your customer's freight off his truck, and then let us all know who this scumbag is. The legality is a bit fuzzy. If the carrier's published terms are 30 days, and they agreed to such terms, then why the change for this shipment?
 

loaders

Site Supporter
#5
That's right MikeJr. We call that, "I have kidnapped your freight and I am holding it hostage". Henry, if you don't pay up, they will start sending you bits of the shipment. Not pleasant! Sorry, it isn't a funny situation to be in. Again, the quickest way to resolve this is pay the guy and move on. Keeping your customer happy is the important thing here.
 

MikeJr

Moderator
Staff member
#6
What I meant by my post was - if the name on the truck doesn't match it means he's going to collect from you and then potentially not pay the transporting carrier (or furtherance provider) in which case you (or our customer) are at risk of paying twice.

Looking forward to knowing who this outfit is that would agree to 30 days then change their mind after pickup.

Keep well,
Mike
 

loaders

Site Supporter
#8
Regardless of what he says he needs the money for, he has broken his word and breached the terms of your agreement with him. At this point, I would talk to him as calmly as possible, agree with his demands, and arrange to have the funds delivered to him at the delivery. Getting angry and upset with him will accomplish nothing (expect maybe make you feel better) and again, the complete delivery of your customer's freight is paramount. Once this distressing episode is over, I am sure we all would like to know the name of this Bozo!
 

Henry

Active Member
#9
Ihave no way to pay him at delivery as i am in Ontario and he delivered in Saskatchewan. I can't believe he has the legal right to do this.

I will post the name once i am done with him. Thanks for the help.
 

Rob

Site Supporter
#10
Ihave no way to pay him at delivery as i am in Ontario and he delivered in Saskatchewan. I can't believe he has the legal right to do this.

I will post the name once i am done with him. Thanks for the help.

No legal right but there are some in this industry that just do as they please and we continue to help them along as we are our own worst enemies. Not like our legal system would do shit either as everyone seems to just about get a pass on everything.
 

loaders

Site Supporter
#11
Legal or not, he has your freight and wants payment before he delivers it. You could contact either your insurance company, or preferably his, and report the load stolen. Perhaps if he gets a call from an insurance company he might ease up. You could try stalling him, but then you run the risk that he dumps your freight at a public warehouse and now you have storage and re-delivery charges to deal with, once he tells you where he dumped it. I am still curious as to the chain of events that made him take this route. Is he just a bad ass, scumbag carrier who pulls this type of stunt on a regular basis, or is there something about your company's relationship with him that caused him to demand payment before delivery? Still think there is something missing here.
 

Henry

Active Member
#12
He agreed the the payment time. After he picked up, he said we do not have a D and B???? Im not sure what that is but he accepted the items noted in my load sheet. There were some heated discussions after he told me he would not deliver without payment first. i don t even know if he will deliver or if its on his truck.
 

loaders

Site Supporter
#13
He is referring to a Dunn and Bradstreet credit report. Why isn't your accounting department involved in this? Sounds like they are afraid of your credit and not getting paid. Again, try and keep things professional, ask him where he wants the money sent, and once the load is confirmed delivered in SK, release the funds.
 

thebluffs1

Site Supporter
#14
He agreed the the payment time. After he picked up, he said we do not have a D and B???? Im not sure what that is but he accepted the items noted in my load sheet. There were some heated discussions after he told me he would not deliver without payment first. i don t even know if he will deliver or if its on his truck.
He agreed the the payment time. After he picked up, he said we do not have a D and B???? Im not sure what that is but he accepted the items noted in my load sheet. There were some heated discussions after he told me he would not deliver without payment first. i don t even know if he will deliver or if its on his truck.
DnB's are pretty standard and are one of the first things you should be paying attention to in any industry. I honestly find it difficult to track how something that's been so common in the Canadian business landscape for so long could be such an unknown....
 

loaders

Site Supporter
#20
You are correct Henry, if they had a problem with your firms credit history, they should have made that known to you before accepting the load, certainly before actually loading it. But, that is in the past and you must deal with the situation as it is now. Either involve your upper management and try to prove to the carrier that you are solvent and credit worthy, or just get the guy paid and the load delivered. Henry, this type of behavior is not uncommon in this industry. In most cases, the transportation transaction involves two parties who may not be familiar with each other. It is not unreasonable for the party extending credit to make inquiries about the other party and their payment history, just as it is important for you to ensure that the carrier you select will supply the service you are asking for. Yes, this should be completed prior to loading, but for whatever reason, the carrier is nervous about getting paid and it is up to you (or your management) to allay those fears. When this situation is finished, look upon it as a learning experience and take steps to ensure that it does not reoccur.
 

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