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?
Who normally pays the trucking company, the shipper or the receiver?
Discussion in 'Experienced Truckers' Advice' started by expedite_it, Jan 6, 2017.
Page 1 of 2
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
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. -
-
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. -
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. -
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. -
-
Here's a short article I found, this is the way I have understood it for many years now:
https://www.google.com/amp/s/thecle...e-difference-between-prepaid-and-collect/amp/ -
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.
-
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.misterG, trucker3205, noluck and 1 other person Thank this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 1 of 2