Carrier’s Possessory Lien and Holding a Shipment Hostage
Facts: A broker dispatched a carrier at an agreed upon rate set forth in a load confirmation. While en route a destination changed and a drop was added. The broker orally agreed to pay a higher rate. However, when the carrier made the first drop he called the broker and demanded a substantially greater amount be paid ($800) before he would make the second delivery. Question: Is it ever okay for a carrier to hold a shipment hostage under these circumstances? Answer: A carrier has a possessory lien for the agreed upon freight charges...
read moreCan Brokers Legally Offset Freight Loss and Damage Claims?
Facts: A broker states that offsetting freight loss and damage claims against freight charges owed is a common everyday occurrence. However, the broker recently posted three shipments on a load board and arranged for a single carrier to transport all three shipments. Shipment number 1 was delivered without problem. However, there was a claim on shipment number 2 that exceeded the amount of freight charges owed for that shipment. The broker therefore offset the claim amount against the freight charges on both shipment numbers 1 and 2. ...
read moreAvoiding Shipper Double Payment of Freight Charges
Question: As a company who uses brokers to set up their truckload freight, how can we protect ourselves from liability of paying for a load twice, should the broker not pay the actual carrier? Answer: Shippers can protect themselves from having to pay twice. Shippers generally prepare the Bill of Lading (BOL), which the motor carrier “issues” when it picks up the load and the driver signs the BOL. In these situations the shipper can sign what is referred to as “Section 7,” which is the non-recourse provision....
read moreCargo Security Should Not be Scary
As Halloween approaches, a truly scary pattern has emerged in the news: the new found boldness/audacity/stupidity of thieves. For instance, two brothers in Pennsylvania recently stole an entire bridge (50 feet by 20 feet) and tried to sell it for scrap. The trucking industry has also been hit hard. FreightWatch reported that cargo thefts in the third quarter of 2011 rose markedly. It is important that carriers take steps to prevent cargo thefts, and to limit their liability if they become targets of cargo thieves. When it comes to...
read moreIndependent Contractor, Employee or Agent?
Question: What determines the difference between an independent contractor and an agent in a broker/shipper relationship? Answer: The distinction between an independent contractor and an employee is very murky and the subject of MANY lawsuits, most often by the government seeking to reclassify independent contractors as employees. There is no bright line test. Generally stated, an independent contractor is a separate and distinct business. An independent contractor must provide service under his own “direction and...
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