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What to do if a freight broker doesnt pay you?

Answer:

If a freight broker doesn’t pay you, the first thing you should do is contact them and ask for a freight quote. If they don’t have one, then you can either try to negotiate with them or take them to court. If you have a contract with the broker, then you may be able to sue them for breach of contract. However, if you don’t have a contract, then you might be out of luck.

Other answers from another websites

Avoid a dispute by setting up a broker agreement from the start.
Rather than deal with the fallout after a payment dispute, you want to do everything you can to prevent nonpayment before it happens. You can do that by being extremely clear upfront and putting everything in writing. For that, you can hammer out a broker agreement.

Use a broker agreement every time, even if you’re working with a reputable, trustworthy broker. Without documentation, it’s like your business transaction never happened. If a dispute arises, and you have to bring in a legal team, you’ll be glad you have everything in writing.

From truckingtruth

Quick question. How do you handle a broker that refuses to pay? There was no problem with the load but he says “he does not have the money right now” and will pay in a couple of weeks.

Marco T

I am doing a freight broker training besides my truck driving training. Therefore, I am able to view this industry from both perspectives. As a broker I will be able to understand the truck driver and as a truck driver I know what the broker goes through. I would start out as a freight agent working as an independent contractor for a freight broker.

KAI

I think you should be patient because he is waiting for his client to pay him. If the shipper does not pay the broker on time it is difficult for him to pay his commission. A good freight broker needs to plan for these situations. Contact him and ask him or her when the shipper will pay him his commission. The shipper usually is late because they are still waiting for the payment of the consignee. It’s like a cycle.

KAI

What to Look For in a 4PL?

Conclusion

The common law rule in America is the carrier must get paid, primarily by the shipper, secondarily by the consignee. However, the contractual terms and/or conduct of the parties to a particular shipment can alter this rule. The presence of intermediaries and related agreements and conduct can also disrupt operation of the general rule, and even more turmoil can be generated by bankruptcy or the claims of secured parties.

Shipments between North America’s two largest trading partners, the United States and Canada, present yet other issues, but, in an appropriate circumstance, application of Canadian law can give new life to the common law rule. Attention to details, whether in
drafting pre-shipment terms and conditions or post-shipment analysis of the facts and potential theories of recovery, can be critical in determining whether the bedrock rule of carriage cases, payment of the carrier, prevails

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Nikolas White

Logistic, Warehouse and Shipping Services Expert. My work has been published in many different formats across North America with topics ranging from international trade to global logistics or supply chain management–all on the forefront of what’s happening right now!

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