BMC 85 Broker Bond - exempt commodities- claim denied

Apr 10, 2017 at 09:47 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. We recently filed a claim for payment on a brokers bond. This broker had been making a number of excuses for not paying, claiming he was defrauded by an employee that is no longer with the company who then took much of his business. The broker received payment from his customer - which is a MAJOR company - but apparently the broker has not, and is not planning to pay a number of carriers who hauled the freight. I received a short email from the company that handles the freight claims letting me know that a BMC 85 Broker bond does not cover exempt agricultural commodites. The load we filed on was a load of poultry meal. Word to the wise - if you haul exempt commodities,(which a large percentage of ag commodites are) - the $75000 broker bond gives you NO PROTECTION from a broker who will not pay you.

Replied on Mon, Apr 10, 2017 at 12:36 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Contact the shipper direct..tell them that you are sending them a bill for product hauled and the reason why...i bet you will get a phone call from this broker with a check being fed exed to you..because you dont think that the shipper might not be a little upset? And who knows.. maybe you might get a new customer..best of luck...

Replied on Mon, Apr 10, 2017 at 12:53 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Contact the shipper direct..tell them that you are sending them a bill for product hauled and the reason why...i bet you will get a phone call from this broker with a check being fed exed to you..because you dont think that the shipper might not be a little upset? And who knows.. maybe you might get a new customer..best of luck..." I talked to another carrier who also has unpaid freight - they contacted the shipper who said "they were not going to get involved".

Replied on Mon, Apr 10, 2017 at 12:53 PM CST

Posted by a private BulkLoads.com member.

Quote: "Contact the shipper direct..tell them that you are sending them a bill for product hauled and the reason why...i bet you will get a phone call from this broker with a check being fed exed to you..because you dont think that the shipper might not be a little upset? And who knows.. maybe you might get a new customer..best of luck..."

I talked to another carrier who also has unpaid freight - they contacted the shipper who said "they were not going to get involved".

Replied on Mon, Apr 10, 2017 at 01:22 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Usually getting a lawyer involved will help. I may be wrong but I believe there is a legal precedent for a carrier getting paid direct if the broker stiffs them.

Replied on Mon, Apr 10, 2017 at 01:23 PM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Don't bother calling the broker to threaten about the lawyer either. He doesn't care and has probably heard that 100 times before with no one actually doing it.

Replied on Tue, Apr 11, 2017 at 06:55 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Well who is this dirty rat so the rest of us don't get the shaft?

Replied on Tue, Apr 11, 2017 at 07:28 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Hello good morning Truckers yeah I don't get it I did bro cream for a long time always paid just something about person that doesn't take on responsibility and whether I get paid or not you will get paid every week no questions there's times where I went negative hundreds of thousands of dollars but you still got your money it's just all about the person just do a little background before you get into something and continue on peace have a good day

Replied on Tue, Apr 11, 2017 at 07:28 AM CST

Posted by a private BulkLoads.com member.

Hello good morning Truckers yeah I don't get it I did bro cream for a long time always paid just something about person that doesn't take on responsibility and whether I get paid or not you will get paid every week no questions there's times where I went negative hundreds of thousands of dollars but you still got your money it's just all about the person just do a little background before you get into something and continue on peace have a good day

Replied on Tue, Apr 11, 2017 at 07:29 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Sorry about that not bro cream brokering

Replied on Tue, Apr 11, 2017 at 09:53 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Im sure they dont want to get involved... maybe next time they will check out the broker thst they hired before giving them the freight..hate to say it.. but sometimes a lawyer is needed.. to just stoke the fire a little..i bet the shipper can go after the broker and hopefully get their money back...tell the shipper that if they delt direct with trucking companies.. this problem wouldnt happen..

Replied on Tue, Apr 11, 2017 at 09:53 AM CST

Posted by a private BulkLoads.com member.

Im sure they dont want to get involved... maybe next time they will check out the broker thst they hired before giving them the freight..hate to say it.. but sometimes a lawyer is needed.. to just stoke the fire a little..i bet the shipper can go after the broker and hopefully get their money back...tell the shipper that if they delt direct with trucking companies.. this problem wouldnt happen..

Replied on Tue, Apr 11, 2017 at 09:59 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Quote: "Im sure they dont want to get involved... maybe next time they will check out the broker thst they hired before giving them the freight..hate to say it.. but sometimes a lawyer is needed.. to just stoke the fire a little..i bet the shipper can go after the broker and hopefully get their money back...tell the shipper that if they delt direct with trucking companies.. this problem wouldnt happen.." My Understanding from conversations that I have had with the CEO of this company is that they are likely to file Bankruptcy. He apparently has told more than one carrier that this is a likely scenario. We are fortunate that we are not owed a great deal of money. Not enough to probably chase after it with an attorney. I had hoped filing on the bond would resolve the situation for us. But as I mentioned the company that handles the bond claims said that poultry meal was an exempt commodity and therefore my claim was no good. I have asked them to please provide me with documentation citing the specific FMCSA rule that states my freight claim against the bond is invalid if the commodity is exempt - I have yet to receive that information. If anyone has the specifics on that rule I would appreciate being able to read it and file a copy away for future reference if needed.

Replied on Tue, Apr 11, 2017 at 09:59 AM CST

Posted by a private BulkLoads.com member.

Quote: "Im sure they dont want to get involved... maybe next time they will check out the broker thst they hired before giving them the freight..hate to say it.. but sometimes a lawyer is needed.. to just stoke the fire a little..i bet the shipper can go after the broker and hopefully get their money back...tell the shipper that if they delt direct with trucking companies.. this problem wouldnt happen.."

My Understanding from conversations that I have had with the CEO of this company is that they are likely to file Bankruptcy. He apparently has told more than one carrier that this is a likely scenario. We are fortunate that we are not owed a great deal of money. Not enough to probably chase after it with an attorney. I had hoped filing on the bond would resolve the situation for us. But as I mentioned the company that handles the bond claims said that poultry meal was an exempt commodity and therefore my claim was no good. I have asked them to please provide me with documentation citing the specific FMCSA rule that states my freight claim against the bond is invalid if the commodity is exempt - I have yet to receive that information. If anyone has the specifics on that rule I would appreciate being able to read it and file a copy away for future reference if needed.

Replied on Tue, Apr 11, 2017 at 11:33 AM CST
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. Contact Baxter & Bailey.. they are bulldogs.. very good at collections.

Replied on Wed, Apr 12, 2017 at 09:37 AM CST + 1
Posted by a private BulkLoads.com member.	Posted by a private BulkLoads.com member. the shipper will be held liable for the freight if you go after them. had a broker go broke on me about 10 years ago and i went after the shipper and they were not at all happy about it but i got paid.Then they can go after the broker themselfs.Sometimes we have to make the shippers held accountable so they check a little more before they deal with these lowlifes who are just out to take the life out of us truckers who are just trying to make a living.

Replied on Wed, Apr 12, 2017 at 09:37 AM CST

+ 1

Posted by a private BulkLoads.com member.

the shipper will be held liable for the freight if you go after them. had a broker go broke on me about 10 years ago and i went after the shipper and they were not at all happy about it but i got paid.Then they can go after the broker themselfs.Sometimes we have to make the shippers held accountable so they check a little more before they deal with these lowlifes who are just out to take the life out of us truckers who are just trying to make a living.