DO YOU WANT TO LEARN MORE ABOUT SHIPPER CREDIT APPLICATION – CONTRACT Every broker and every trucking company should use a form, like the one below, when extending credit to a shipper or
DO YOU WANT TO LEARN MORE ABOUT
SHIPPER CREDIT APPLICATION – CONTRACT
Every broker and every trucking company should use a form, like the one below,
when extending credit to a shipper or a broker, respectively. The principal reasons the
Students who own trucks and attend LoadTraining classes lose money to brokers and
shippers is that they are unaware of their need to properly extend credit to those asking for
it. We urge every reader to consider using the enclosed form. You may not copy it, but
simply on your own letterhead reproduce the verbiage. Under MAP 21, it is imperative that
each company (trucking and brokering) receives a signed Credit Application from the same
shipper; one credit app for both trucker and brokering company will no longer suffice. You
may only do one credit check for both, however. MAP 21 requires separate registrations
by completely separate companies in everything. Many large motor carriers take
possession of cargo in the carrier name; broker it without shipper’s knowledge. If the actual
motor carrier remains unpaid, that carrier has little direct recourse to the “booked” carrier
or shipper who wrote the BOL. When that load is brokered again, actual carrier’s credit line
has been extended to who knows how many interceding parties. MAP 21 outlaws this
practice in order to protect the actual hauling carrier. If trucker and broker have separate
companies, the actual hauling carrier may have zero rights of recovery from the shipper.
Carriers and brokers who practice good credit extension programs will seldom fail to be
paid. You might say that MAP 21 was passed to protect actual motor carriers from their
own bad credit extension policies.
Must it be said that brokers and truckers who provide transportation services
without a sound credit application signature and then vetting, before the loading, is a fool.
Notice the Application is actually a “Contract” for credit providing credit extension terms
and recovery policies and provides for interest, collection costs, and reasonable attorney’s
fees if debt recovery is required.