When it comes to the shipping, Receiving & Collections industry, it can be difficult to navigate, especially when it comes to making sure your load is delivered on time, but also that profit is being made when possible. There are a variety of factors that can get in the way of a shipper collecting or making payments, this blog will cover a variety of topics that cover the basics of the transportation industry, tactics to reduce business costs, and how to take practical steps to reduce the need for transportation debt collection services.
What is a Common & Contract Carrier?
- A common carrier can be anyone that hauls cargo, from goods and products, to people, and livestock. It is relatively simple to become a common carrier, aside from getting the necessary certifications & equipment to transport goods, after that it is just a matter of finding work.
- Contract carriers have contracts with specific shippers, brokers, or freight companies. This partnership establishes a system where a business can regularly ship goods for one/many specific industries reliably.
In short Common Carriers provide for-hire transportations services to the public and Contract Carriers are for-hire transportation services for specific shippers based on contracts.
What is Truck Detention?
Truck detention is the process that involves the loading/unloading of cargo from point A to Point B. Generally, a driver is granted a 2-hour window when it comes to picking up/dropping off cargo, but there are a variety of factors that can get in the way of this process, and if a driver goes beyond the 2 hour window, will not only slow down future deliveries but can ultimately affect your overall profit.
Always Create A Contract!
Whether you are new to the transportation industry, or if you are looking to explore effective ways to reduce late payment/ non-payment from clients is to create a contract for all future shipping or transportation contracts that will ensure you get paid upon completion of the job, with contingencies in place to help reduce the odds that a client pays late or not at all!
Types of Freight Factoring
Freight factoring can be a great solution for any company that may be facing cashflow problems or delinquency.
- Recourse Factoring: With this method, the transport business takes full responsibility for any unpaid invoices. This results in lower rates since liability protection is not necessary as the company can handle any unexpected debts. The one downside is that this will result in a higher cost as liabilities need to be covered by the factoring agency.
- Non-Recourse Factoring: This method removes any existing liability for unpaid invoices or clients who have defaulted, which is an ideal option for smaller businesses that cannot cover debts out of pocket.
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 collection efforts are successful, our rates will be based on how old and how much the debt is, if there is a damage claim, and whether the debtor is in or out of business. 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 Contact Us Directly!
For more information on our agency practices and methods, view our AWA Collection Process Page.