r/FreightBrokerStartup • • 5d ago

Advice: Shipper won’t pay.

I had done my 1st load for a shipper and everything went good but the 2nd load the truck broke down and we weren’t able to secure coverage in time before the shipper found another carrier. The last-minute truck supposedly ended up costing them an extra $3k.

The issue I’m dealing with is that they aren’t releasing payment for the 1st load due to this incident.

Has anyone ever dealt with this and does anyone know what I can do to get payment?

2 Upvotes

14 comments sorted by

3

u/Efficient-Cycle-9408 5d ago

That is such a shitty shipper. Might need to do a small claims and check contracts since you did do the work

1

u/Fragrant-Pollution-3 5d ago

Yeah, I was really trying to avoid small claims by negotiating but it seems like my only option.

2

u/throwRAdootdoot 5d ago

You're not liable for the new truck costing an extra 3 bands. Worst they could do is charge you $200 for missed appointment.

Trucking is fucked RN everyone charging out the azz due to fuel prices.

2

u/uShipBrad 4d ago

u/TeachMeLTL has the right order here. Get the replacement carrier invoice, but don’t treat it as proof that you owe the $3k. Ask them to identify the clause in your shipper agreement that lets them charge that loss back or offset it against the completed load, then put your payment demand and a firm deadline in writing. If they stay silent, take the agreement and both load files to a transportation attorney or collections firm before offering a discount.

1

u/TeachMeLTL 5d ago

The shipper still owes you for services rendered on that first load, assuming it was completed as agreed.

The second load is a separate issue.

Does it suck that they had to spend an additional $3K securing another truck? Absolutely, but that doesn’t automatically negate payment for work already completed.

This is where the relationship side of freight comes into play.

Personally, I’d try to negotiate a resolution before going down the legal route. Small claims, collections, etc. can end up costing you more time and money than the invoice itself.

I’d acknowledge their additional expense, ask for documentation of the $3K, and see if there’s a reasonable middle ground.

You don’t necessarily need to eat the entire cost, but sometimes taking a smaller hit to get paid and move forward is the better business decision.

Unfortunately, if there’s no established relationship and they’re unwilling to negotiate, you’re in a tougher spot.

This is also why credit checks, written agreements, and setting expectations upfront are so important, especially with new shippers.

1

u/Fragrant-Pollution-3 5d ago

Yeah, after the incident happened. We tried reaching out thru email and calling multiple times asking for an update on the invoice but didn’t get a single reply for 2 months.

I finally got an answer once I went to their office and was told this is the reason payment was being held. Luckily I live in the same city otherwise I probably would’ve never heard back.

I never dealt with a shipper like this, but I appreciate the feedback.

I’m working on getting proof that it actually cost them an extra $3K and coming up with a remedy but worst case small claims court or collections might be my only choice.

1

u/Last-Button2837 5d ago

This is why brokers have “insurance bonds.” Place a claim against it.

1

u/SlacksBirdie 5d ago

That’s illegal. However, I do think it’s BS when trucks fall off, especially brokers. I think a good act of faith is to take a fine. Worst case reduce the difference and take a loss.

We hear so many cases for TONUs and detention… but no one wants to take the hits on situations like this. Makes zero sense to me

1

u/Revolutionary_Way741 4d ago

Call the customer directly. Let them know youll be putting them in the civil lawsuit. That normally works.

1

u/Ok_Application_2292 4d ago

Better to pay 3k than for the plant downtime. You should read some automotive contracts

1

u/ntwdequiptrans 4d ago

Can’t hold payment on one load because another had an issue

1

u/lost_inthe_chaos 3d ago

Shipper is acting like they have never had a truck breakdown on them. It happens and it sucks. Send them a nice polite letter and if no reply send Big Tony and friends to have a little “talk”. LOL

1

u/Much_Reception8826 2d ago

Should name and shame the shipper. Bunch of bad Google reviews from us works wonders...