Question about freight claims for delays

M

mtltrans

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Jun 21, 2017
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Hello, looking for feedback about clients that want to claim based on transit time. Client's client is unhappy that a common carrier took longer than their website said for transit time estimate. They are looking to receive a credit. The common carrier will not oblige. Are we okay to defend with the Conditions of Carriage clause that says:

6. Delay

No carrier is bound to carry goods by any particular public truck or in time for any particular market or otherwise than with due dispatch, unless by agreement that is specifically endorsed in the contract of carriage and signed by the parties.

All feedback appreciated. Thanks.
 
Common Carrier is always LTL (unless booked otherwise) and always are "estimates" so not sure why they are trying to claim anything? maybe a little push back is needed? just my 1.5 cents worth :)
 
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PackRat said:
Common Carrier is always LTL (unless booked otherwise) and always are "estimates" so not sure why they are trying to claim anything? maybe a little push back is needed? just my 1.5 cents worth :)
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Thank you
 
Rob said:
Sounds like a cheap customer that is all about them. We want Dom service for Labbatts pricing. You sent it ltl it will get there asap. You want time and date guarantee pay truckload.
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Thank you
 
Shakey said:
most LTL providers now offer a guaranteed rate, advise them what that would have been compared to what you rated. Might open another can of worms if you didn't offer that up front but............
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That's a great idea!
 
Unless the service is offered as "Guaranteed" (Back to the Fast As Flite days) my say is "NO" to claiming for delay. Transits times are guides.. if it is really that bad, they can find another carrier.
 
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Shakey said:
most LTL providers now offer a guaranteed rate, advise them what that would have been compared to what you rated. Might open another can of worms if you didn't offer that up front but............
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And many do not comprehend the impact of what "Guaranteed" implies. Opens up the carrier to many claims that were probably not factored into the rate. Similar problem for carriers and brokers quoting "ALL IN" without stipulating what it implies. Clarity matters, especially if it needs to be litigated down the road by people not directly involved in the movement. What is said and implied on paper is what will persist.
 
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Sorry guys,

I agree with some of you but you have to examine the scope of the work. If this is a one and done customer then well you know what to do. But we dont really have accounts like that. Our customers are repeat shippers and ship long term. We build the relationship then the freight flows. So given that our work is long term this is how we work.

We offer different levels of ltl service when we make ltl quotes

1) Regular ltl 5-8 days non guaranteed at all
2) Express 3-4 days non guaranteed at all
3) Time critical guaranteed date and time by 17:00pm - time guaranteed/ if its late I will 100% of the time give back a little bit of my profit as show of good faith because i did sell them time guaranteed delivery
4) Time critical guaranteed date and time by 08:00am - Money back guarantee
5) AOG/Dedicated/sprinter/hot shot-1/2 days tops - non guaranteed money or time but these are never late

If you as a carrier or broker are selling your customer freight options , you must keep true to your word if they chose that service. I cant tell you how many carriers have suspended money back options in the past 2 years but we still have to pay back our customer because we didn't stop selling guaranteed.

As a broker the measure of profitability is based off the total number of monthly transaction and margin per transaction. Granted you may look dumb in front of your boss giving back money but you should be in this for the next 30 years with your customer. So it doesn't really matter if lose 500 this week, that only means that I need to make double profit next week

You should hold your brokers and carriers more accountable.
 
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Fast as Flight is to terminals in Canada that one got me once, we used them for one account on that service and in small print it was only guaranteed to terminal not on delivery..........we got it refunded but only because they didn't want to lose the business. Not sure if this has been changed was few years ago
 
Shakey said:
Fast as Flight is to terminals in Canada that one got me once, we used them for one account on that service and in small print it was only guaranteed to terminal not on delivery..........we got it refunded but only because they didn't want to lose the business. Not sure if this has been changed was few years ago
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They no longer operate... absorbed by YRC years ago.
 
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