CP Rail Collecting from Consignee for storage fees - Legal?

TransAction

Well-Known Member
Apr 7, 2011
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Hi All,

I have a client who came to me with an interesting scenario;

They used CP rail directly last year to move several 53' containers prepaid, to a 3PL DC in BC. On one of the shipments, the receiver ask CP to drop the container in their yard. Unknown to the shipper, the consignee left the container there for 10 days before contacting CP to pick it up. Our customer of course received a bill from CP rail for the container drop fees. They have not paid them for over a year as they feel that it was the consignee that arranged the drop of the container. I did not tell my customer this but we use CP and monitor the containers through the web portal to avoid these sort of situations. The bill of lading was prepaid so I believe they are responsible.

Now CP rail is trying to bill the 3PL warehouse. Is this legal for them to do? I understand the BOL Act covers carriers being able to collect from non paying 3rd parties but can carriers go after consignees if the bill of lading is prepaid and not settled by the shipper?
 
Both CN and CP are very aggressive about collecting fees for that type of thing. If you've got your fingers in that pie then you could be held liable for the charges.
 
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