Unpaid freight bills
How to collect unpaid freight bills.
A freight bill past terms is a cash-flow problem for any carrier or broker. Here's a general escalation plan and where outside help fits in.
1. Confirm the bill is clean
Many slow-paid freight bills are really paperwork problems: a missing or illegible POD, a rate-con mismatch, unapproved accessorials or the wrong bill-to party. Fix these first and resubmit, because a clean invoice is far easier to collect.
2. Escalate quickly and in writing
Call AP, then send a written reminder with the invoice, rate confirmation and POD attached. If terms pass with no commitment, send a final notice and then a formal demand letter with a firm deadline.
3. Look at every source of payment
- The broker, if one arranged the load
- The broker's financial security, often a BMC-84 bond
- The shipper or consignee, depending on the bill of lading and contracts (see who owes the freight)
4. Mind the clock
For many interstate motor-carrier charges, federal law (49 U.S.C. § 14705) generally requires suit within 18 months of when the claim accrues. Don't let an account sit. See freight time limits.
5. Place it with a transportation-savvy collector
An agency that knows freight will ask for the right documents, check the debtor's FMCSA status and bond, and pursue every liable party. Larger or disputed bills may need a transportation collection attorney.
Not legal advice. This page is general information about U.S. freight-payment rules, not legal advice. Federal and state transportation law is technical, depends on the facts and changes over time. FMCSA rules on broker financial security were also being updated as of this writing. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a transportation attorney about your situation.
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Frequently asked questions
How long should I wait before sending a freight bill to collections?
Many carriers and brokers escalate soon after terms are missed. Given federal time limits and the risk of a broker or shipper failing, waiting months usually hurts recovery.
What documents do I need to collect a freight bill?
Typically the rate confirmation, bill of lading, signed proof of delivery, invoice, accessorial backup and any correspondence about the load.
Can I charge late fees on freight bills?
Only if your contract, rate confirmation or applicable tariff or terms provide for them, and within legal limits.
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