Who normally pays the trucking company, the shipper or the receiver?

Discussion in 'Experienced Truckers' Advice' started by expedite_it, Jan 6, 2017.

  1. expedite_it

    expedite_it Road Train Member

    1,635
    852
    Sep 8, 2012
    0
    I know that sometimes the shipper and the receiver of a trucking company are just different branches of the same company. For example, sometimes Amazon is the shipper of a given order, and the receiver of the same order is a different branch of Amazon. However, most of the time, my shippers and receivers are not the same company.

    Some people might think that because the places where truckers pick up loads are called "shippers" , that means that the shipper is paying the company because they think the word shipper means that the shipper is "shipping" the freight, not the receiver. I don't think that that is necessarily the case. I think that shippers might just be called shippers to distinguish them from the receivers.

    When the p/u location and the delivery location of an order are at different companies, who normally pays a trucking company to transport freight, the shipper or the receiver?
     
    Last edited: Jan 6, 2017
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. mindes

    mindes Medium Load Member

    626
    540
    Feb 17, 2015
    Crestview, Fl
    0
    I would imagine the shipper pays the shipping company but consignee ends up paying through the price of goods.

    Sort of a shipping and handling charge.
     
  4. noluck

    noluck Road Train Member

    1,616
    11,683
    Jun 10, 2011
    greenville,sc
    0
    It all depends a lot of times the shipper pays, but just as much maybe even more whoever is buying the goods pay.
     
  5. noluck

    noluck Road Train Member

    1,616
    11,683
    Jun 10, 2011
    greenville,sc
    0
    Sometimes neither. Some transactions like blind shipments there is a middle man. Even when it's not blind there is a middle man sometimes.
     
    Ruthless Thanks this.
  6. Pepper24

    Pepper24 Road Train Member

    2,048
    1,558
    Dec 3, 2010
    0
    one way to tell who's paying the carrier if your bills say prepaid the shipper is paying,if collect the receiver is paying.
     
    expedite_it, thejackal and wore out Thank this.
  7. BridgettAnn

    BridgettAnn Light Load Member

    92
    51
    Jul 5, 2011
    Allen Park, Mi
    0
    The receiver can actually be the "shipping customer" (not to be confused with shipper) It depends on the terms of agreement between buyer and seller of product. Sometimes the selling customer actually arranges payment and transport and sometimes the receiver arranges to have their order picked up because they are responsible for arranging transport of their purchased goods. No way to tell really.. (in advance without looking at BOL) and like OP said, sometimes it's a middleman with a blind shipment.
     
    tscottme Thanks this.
  8. tscottme

    tscottme Road Train Member

    It can be shipper pay or receiver pay. The BOL will usually make it somewhat clear. My big customer pays for the shippers to make & ship parts. However, if the supplier or trucking company cause a need for an expedite or extra load, the guilty party pays. IIRC.
     
  9. JReding

    JReding Road Train Member

    1,955
    3,504
    Sep 8, 2014
    Puyallup, WA
    0
  10. STexan

    STexan Road Train Member

    14,963
    29,153
    Oct 3, 2011
    Longview, TX
    0
    It varies. We do a lot of "customer pickups" for a large national food service company. But then again we do a lot of work with shippers who pay us direct, and there are a number of other possibilities that are just as likely.
     
    Bean Jr. and JReding Thank this.
  11. Ridgeline

    Ridgeline Road Train Member

    22,101
    113,190
    Dec 18, 2011
    Michigan
    0
    you guys overthink this, it is simple ... it doesn't matter. There are maybe 100 different combinations including non-connected 3p entities that pay for it. BUT it doesn't matter.

    "I think that shippers might just be called shippers to distinguish them from the receivers."

    Let's talk about using the right terms.

    Shipper is where it originates from, the consignee is the one who assumes the responsibility of payment for it, the receiver is where the transfer happens and can be a consignee but not always.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.