Can Brokers seek payment from Shippers / Consignees?

TransAction

TransAction

Well-Known Member
Apr 7, 2011
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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?
 
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.
 
Absolutely. All parties listed on the BOL are subject to the Canadian Bill of Lading act.
PR
 
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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.
 
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.
 
PackRat said:
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.
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That's very interesting. What if the bol's consignee showed : ABC Company c/o DEF Warehouse with the warehouse address?
 
Also, would different laws apply if it is inbound FROM the U.S. to Canada, versus outbound TO the US from Canada?
 
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
 
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