COLLECTION OF EXPENSE CHARGES – ITEM 440

 

1.  Carrier may, by tariff rule, assess reasonable and certain liquidated damages for all costs incurred in the collection of overdue freight charges. Carrier may use one of the following methods in their tariffs:

a.  The first method is to assess liquidated damages as a separate additional charge to the unpaid freight bill. In so doing, the tariff rule shall disclose the exact amount of the charges by stating either a dollar or specified percentage amount (or a combination of both) of the unpaid freight bill. The tariff shall further specify the time period (which shall at least allow for the authorized credit period) within which the shipper must pay to avoid such liquidated damages.

b.  The second method is to require payment of the full non-discounted rate instead of the discounted rate otherwise applicable. The difference between the discount and the full rate constitutes a carrier's liquidated damages for its collection effort. Under this method the tariff shall identify the discount rates that are subject to the condition precedent and which require the shipper to make payment by a date certain may not be set to occur by the carrier until at least after the expiration of the carrier's authorized credit period.

2.  The damages, the timing of their applicability, and the conditions, if any, as provided by the tariff-rule methods allowed under Paragraphs 1a and 1b, above, shall also be:

a.  Clearly described in the tariff rules;

b.  Applied without unlawful prejudice and/or unjust discrimination between similarly situated shippers or consignees;

c.  Applied only to the non-payment of original, separate and independent freight bills and shall not apply to aggregate balance-dues claims sought for collection on past shipments by bankrupt, trustee or any other person or agent;

d.  Not applicable to instances of clear clerical or ministerial error, such as non-receipt of a carrier's freight bill to the wrong address;

e.  Not applicable in any way to a charge for a transportation service if the carrier's bill of lading independently provided that the shipper is liable for fees incurred by the carrier in the collection of freight charges on that same transportation service.

3.  As an alternative to the tariff-rule methods allowed under Paragraphs 1a and 1b, above, a carrier may, wholly outside of its tariff, assess collection charges through contract terms in a bill of lading. By using the carrier and its bill of lading, the shipper accepts the bill of lading terms.

4.  Freight charges are to be paid within fourteen (14) days. In the event payments are not received after 30 days from the date freight bill was issued, all discounts accorded the shipment(s) will be revoked and tariff rates will apply.