In today’s transportation industry, freight charges, cargo shipping rates, and trucking rates are not just numbers on an invoice—they are the lifeline of every motor carrier. Carriers perform the hard work of moving freight, but too often they face delayed or denied payments when brokers default, shippers try to avoid responsibility, or disputes arise over freight shipping costs. When this happens, the expertise of a lawyer for collections or an experienced debt collection attorney can make all the difference.
If you are a motor carrier or transportation company struggling with commercial collections, you need to understand your legal rights. The courts have been clear: carriers who deliver freight are entitled to payment. But collecting that money often requires legal action. Below, we outline the most important legal principles and explain why working with a collections lawyer or transportation lawyer ensures that you are not left unpaid for the services you provided.
Carriers Have an Right to Payment
The law strongly protects the carrier’s right to recover freight shipping charges. The Supreme Court explained this principle in Southern Pacific Transportation Co. v. Commercial Metals Co., 456 U.S. 336, 343 (1982):
“The law protects the party who actually moved the goods.”
Similarly, in Louisville & Nashville R. Co. v. Central Iron & Coal Co., 265 U.S. 59, 65 (1924), the Court ruled that the obligation to pay arises upon delivery of freight—not on private arrangements between shippers, brokers, or other intermediaries. In other words, once the goods are delivered, the carrier has earned its pay.
For carriers, this means that no matter what happened between a shipper and a broker, you still have a right to collect. A skilled collection attorney or law firm debt collection team ensures these rights are enforced quickly and effectively.
Broker Nonpayment Does Not Excuse the Shipper
One of the most common disputes in commercial debt collection is a shipper claiming that it already paid a broker. But courts have been consistent: paying the broker does not relieve the shipper of its obligation to the carrier.
In Oak Harbor Freight Lines, Inc. v. Sears Roebuck & Co., 513 F.3d 949, 954 (9th Cir. 2008), the Ninth Circuit Court of Appeals ruled:
“A shipper cannot escape liability for freight charges merely because it paid a broker who failed to remit payment to the carrier.”
The same principle was upheld in Excel Transportation Services, Inc. v. CSX Lines, LLC, 280 F. Supp. 2d 617, 619 (S.D. Tex. 2003), where the court explained that the risk of broker nonpayment rests with the shipper, not the carrier.
This rule protects carriers from being left out in the cold when a broker goes bankrupt or disappears. But to enforce it, you need a debt collection lawyer who knows how to present the case and hold shippers accountable for due payment.
Bills of Lading and Consignee Liability
Another critical tool for carriers is the bill of lading—the legal contract that governs freight shipments. Courts have consistently held that when a consignee accepts delivery, they also accept responsibility for paying the freight shipping charges.
The U.S. Supreme Court made this clear in Pittsburgh, C.C. & St. L. Ry. Co. v. Fink, 250 U.S. 577, 582 (1919):
“By accepting delivery and not objecting to the terms of the bill of lading, the consignee becomes liable for freight charges.”
Likewise, in Illinois Central Rd. Co. v. A.B. Friedman Co., Inc., 161 S.W.2d 440, 443 (Mo. Ct. App. 1942), the court confirmed that acceptance of the freight binds the consignee to the payment obligations.
For carriers, this means both the shipper and the consignee can be pursued for freight costs. A seasoned lawyer for debt collection will use this leverage to ensure payment comes from one or both responsible parties.
Federal Law Requires Carriers to Collect
Federal law preempts many state defenses and creates uniform enforcement across the country. In Maislin Indus., U.S., Inc. v. Primary Steel, Inc., 497 U.S. 116, 130 (1990), the Supreme Court held that carriers must collect their applicable freight charges and cannot be barred by equitable estoppel arguments under state law.
This ensures that disputes over truck freight rates, freight shipping costs, and cargo shipping rates are governed by one clear standard, not a patchwork of inconsistent state laws. For a carrier seeking recovery, a transportation lawyer ensures that federal law is applied in your favor.
The Issue of Double Payment
Shippers often argue that it is unfair to pay twice—once to the broker and again to the carrier. But courts have consistently said that the risk of broker insolvency belongs to the shipper, not the carrier.
In Excel Transportation, 280 F. Supp. 2d at 621–22, the court explained:
“Double payment is unfortunate, but it’s not unfair when the shipper chose to use a broker instead of paying the carrier directly.”
And in Oak Harbor Freight Lines, 513 F.3d at 954, the Ninth Circuit reinforced that the shipper bears the risk of broker default.
This principle protects carriers from financial loss and ensures that the party who performed the service—the carrier—gets paid. A debt attorney familiar with this precedent can rebut shipper defenses and pursue recovery of freight shipping rates and trucking rates.
Why Carriers Need a Collections Lawyer
The legal landscape around freight shipping charges, truck freight rates, and commercial collections can be complicated. Even though the law supports carriers, enforcing those rights often requires litigation, demand letters, or settlement negotiations.
A dedicated collections lawyer or lawyer for debt collection can:
Carriers should not wait until losses pile up. With the right debt collection attorney, you can secure payment and maintain healthy cash flow.
The Bottom Line for Carriers
When disputes arise over freight shipping rates or trucking rates, the courts have been clear: carriers must be paid. Shippers and consignees cannot avoid liability by pointing to a broker, and federal law ensures that carriers’ rights are protected.
But enforcing those rights requires experience, persistence, and legal expertise. That is why carriers turn to Davison Law Firm—a trusted name in law firm debt collection and transportation law.
Contact a Transportation Collections Lawyer Today
Unpaid freight charges, overdue trucking rates, or unresolved freight shipping costs can cripple a motor carrier’s bottom line. If you are facing commercial collections issues or struggling to collect a due payment, the law is on your side—but you need the right attorney to enforce it.
At Davison Law Firm, we represent carriers, brokers, and transportation companies in payment collection and debt recovery. Whether the dispute involves cargo shipping rates, freight shipping charges, or trucking rates, we fight to make sure carriers get paid for the work they perform.
Contact Edgar Davison at Davison Law Firm today — an experienced collections lawyer, debt attorney, and transportation lawyer who knows how to win freight collection cases. Email: [email protected]
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