Question

When can a carrier withhold delivery of a shipment because the shipper or consignee has not paid past freight bill obligations?

Answer 1

The liability of paymnet of freight charges is the obligation for 3 parties:

1) the shipper - the one who is shipping the goods, the frieght company has the right to aks the shipper to pay the charges.

2) Source - the one who is at the reciving end, in case where the shipper does not pay for charges in the begining, the company has the right to ask for payment by the one who is receiving the goods.

3) Third party - The frsight company can also ask the third party such as middle men, broker, etc. to pay for the charges as he will be delivering the goods to the source.

The main obligation for the payment is with the Shipper, because he is the one who wants to do all the bussiness. in case where shipper does not pay the freight company can ask the third party to pay for it. Some times third party also not pay for charges, in such cases it is main obligation of shipper to pay again for the charges, although he might have already paid to the third party for the charges.