When Congress abolished the Interstate Commerce Commission (ICCTA 1995 a change in policy stated that Tariffs no longer needed to be filed with any agency, however, the common
misconception that many individuals make today is thinking that tariffs were eliminated entirely, this information could not be further from the truth! Read our blog to learn more about how these tariffs can help carriers protect their business!
What Are Tariffs & How Do They Help Motor Carriers?
Under 49 U.S.C. §13710, all motor carriers are required to have a written or electronic copy of the “rates, classifications, rules and practices” upon which any rate applicable to a shipment is
Who Can See These Tariff Rates?
While there is no law that states carriers are required to make their tariffs to consumers. It is generally advised to provide tariff rates on location or on your company website. A carrier is obligated to provide shippers a tariff rate at their request however they are not required by law to state they have tariffs enacted.
When it comes to legal situations, in regard to nonpayment or a broken contract, it is beneficial to have your tariffs listed publicly as this can help turn a litigation case in your favor as the charges were always easily accessible to the public.
Below is a brief snapshot of various motor carrier tariffs and how they can help increase profit for motor carriers. Please bear in mind that these can vary from company to company
Limitation of Liability.
Federal laws allow carriers to limit certain liabilities with specific tariff language. Carriers can limit their liability to specific dollar amounts per pound.
Many tariffs can include a guideline that requires a shipper to provide the exact value of the goods on the bill of lading. This can help to indicate that a carrier might not accept a set amount for transportation
For damages a tariff can include language regarding liabilities and what a carrier is not responsible for, this can include covering costs such as incidental or uncontrollable damages.
A payment protection tariff clearly states a carrier rights to hold deliveries on freight that may have outstanding or unpaid claims
Late Payment Charges.
A carrier can enact late payment fees to help incite timely payment and reduce delinquency, which can also double as offering percentage discounts for early payments.
For a more detailed overview of carrier-based tariffs, please click here!
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.
AWA specializes in Transportation collections, it’s all we do! AWA’s strong understanding of the transportation industry puts its clients in the best position to get paid. If you have unpaid freight invoices and aren’t 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.