Trucking: Billing regulations, rate tariff, tariff rates


Question
We are a small trucking company that has been requested to be the carrier for a company, even though this company uses a freight broker and at one time used that freight broker's trucking company.  We provided the freight broker our rate tariff, yet the broker reduces our bills, is this legal? If not what is our next course of action?

Answer
Victoria, I assume you are a Contract Carrier and as such you should have a contract between you and the Broker spelling out your rates and any applicable accessorial charges, fuel surcharges, etc. If you do not have a contract and you rely on the load tenders from the broker then they form the contract and the rate is whatever you agree to in the load tender.  I'm a little unclear why if the shipper wants you they would involve the broker as a middleman unless it's for their convenience in managing their other freight.  If you are a Common Carrier and you have provided your tariff to the Broker and there is no other contracts or agreements or load tenders that you accepted with another rate then you should pursue the full tariff rates, however in my experience a broker will always get a signed rate sheet before giving the load to any carrier.  If you feel you are beeing bullied by the broker or being treated unfairly you need to have a talk with them and involve the shipper if appropriate.  Ultimately the rates will come down to the market and you will have to decide if it's worth handling the business and the Shipper will have to evaluate their alternatives and decide if you are worth what you are asking as well.  Open the dialogue and Best of luck.
Jim.