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Lumper Fees and Who is Responsible for Paying Them

Lumper Fees and Who is Responsible for Paying Them

Introduction

Although the trucking industry relies on lumpers every day, the term is virtually unknown by those outside of the industry. They operate behind the scenes to increase the proficiency of drivers, and as such, they contribute to making sure you receive your delivery on time.

Who are Lumpers, and what service do they provide?

In the supply chain, a lumper works in loading and unloading cargo goods. Lumpers are often used to transport food or grocery goods and assist supply chain distribution in other industries.

Lumper companies hire lumpers, train them, provide worker’s compensation insurance, and hold liability insurance for the work they do for their employees. It is occasionally the case that lumpers work as independent contractors at the loading or unloading site for a per-diem rate. Most times, Lumpers are paid by truck drivers who wish to load or unload their wares quickly. Trucking companies then reimburse the drivers in accordance with the pricing models built into their contracts.

What is a Lumper fee, and who is responsible for paying them?

Lumper fees are amounts paid for the service of loading and offloading a vehicle. Earlier in the trucking industry, the lumber fee wasn’t borne by transporting companies because their drivers handled most of the loading and unloading of cargo. However, with the increase in cargo volume coupled with the shortage of available drivers, this process wasn’t sustainable as each journey made drivers more stressed and worn out, leaving them in a less effective state to hit the road. So the need for a third-party(lumpers) in this supply chain arose to relieve the workload on these drivers. In other words, lumper fees are paid to lumpers to increase the efficiency of drivers on the road.

When the lumper services have been rendered, drivers are expected to make adequate payment with the expectation that their company will compensate them. This company, in turn, will offset its cost from customers.

There are laws to protect drivers from losses arising from the payment of lumping fees or their company’s refusal to reimburse them, under 49 U.S. Code § 14103. Loading and unloading motor vehicles, these protections are elaborated in two cases.

In cases where persons who own or operate motor transport vehicles in interstate commerce rendering compensation and assistance to lumpers or other persons involved in loading and unloading the vehicle. The responsibility then falls on the shippers or receivers of property to provide such assistance or compensation to the operators and owners for cost accrued through compensating people for their service.

The second aspect of this code prevents the possibility of scams by prohibiting coercion or attempt to coerce any person rendering transportation services. In this case, it is unlawful to compel vehicle owners or operators to load or unload or pay any person to load or unload such property from or unto the vehicle.

Why Choose AWA for Your Transportation Collection Needs?

AWA operates on a contingency fee basis, meaning, if we cannot collect, you owe us nothing. If you have unpaid freight invoices and are not sure what to do next, call 662-892-8591 to speak with one of AWA’s client specialists today or Place a Direct Claim Today

For more information on our agency practices and methods, view our AWA Collection Process Page.

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