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Can Brokers seek payment from Shippers / Consignees?

Discussion in 'Business Strategy' started by TransAction, Jan 11, 2017.

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  1. PackRat

    PackRat Site Supporter

    Transaction: Yes...if the warehouse is listed on the BOL they can be held liable for unpaid freight charges. If no one party pays the invoice then you do a "spray and pray" in court......List all parties on your court documents because that's the only way you'll get your money if no one steps up to pay.

    F1: Yes....I am referring to the Canadian Bill of Lading Act so anything originating or terminating in Canada "May" not be governed by the act...however...it's still up for interpretation in a court of law:

    2 Every consignee of goods named in a bill of lading, and every endorsee of a bill of lading to whom the property in the goods therein mentioned passes on or by reason of the consignment or endorsement, has and is vested with all rights of action and is subject to all liabilities in respect of those goods as if the contract contained in the bill of lading had been made with himself.

    Hope that helps!
    PR
     
  2. F1 Freight

    F1 Freight Site Supporter

    Also, would different laws apply if it is inbound FROM the U.S. to Canada, versus outbound TO the US from Canada?
     
  3. TransAction

    TransAction Active Member

    That's very interesting. What if the bol's consignee showed : ABC Company c/o DEF Warehouse with the warehouse address?
     
  4. PackRat

    PackRat Site Supporter

    All parties listed on the BOL are liable. I was successful in getting paid for the exact same type of move. Sent a letter to the warehouse manager with a copy of the invoice (billed to them) and explained the Bill of Lading Act. Told him that his customer didn't pay the invoice so therefore his company was liable. He investigated and actually found out that the same customer was in arrears with them so put a hold on all of his product. We both ended up getting paid. It's a bit of work but anything that puts pressure on them to pay is worth it. Hope it all works out for you.
     
  5. theman

    theman Well-Known Member

    If you have the real B/L, it's not impossible to figure out who the actual parties are and move from there.
     
    htcollections likes this.
  6. TransportQ

    TransportQ Suspended Member

    What if the shippers/ receivers are cross docks ? Who pays for it then, them ?
     
  7. TransAction

    TransAction Active Member

    Thanks. I've seen alot of threads on this as per the carrier's being able to do so just wasn't 100% on the broker side. We've been very good at collecting over the years and have recently run into an issue. Thanks for your help.
     
  8. PackRat

    PackRat Site Supporter

    Absolutely. All parties listed on the BOL are subject to the Canadian Bill of Lading act.
    PR
     
    ShawnR likes this.
  9. theman

    theman Well-Known Member

    Freight terms show on the Bill of Lading as collect or prepaid. The fact that you put a stamp as '3rd party billing' is just meant to defer those terms to bill you. It's worth a try when you can't get paid from the shipper, but it's a fight.
     
  10. TransAction

    TransAction Active Member

    HI All,

    As a broker, do we have the right to seek payment from a consignee if the bill of lading is marked as "3rd Party Bill To Trans Action Logistics" if the shipper is not paying or visa versa?
     

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