If the shipper gives written notice to all parties (broker and carrier) before dispatch that penalties of $____ per day or $____ per hour will apply if a load misses its appointment, and all parties sign that notice, the shipper can collect delay charges for foreseeable damages. This notice must be in writing and should require signatures. This falls under the just-in-time concept used by auto manufacturers, who pay a premium for guaranteed service. Expect to pay a premium if you negotiate foreseeable damages with your provider. Use a large, financially stable carrier that can execute high-level service and cover penalties. Smaller providers may not fix a broken truck quickly or have resources to pay delay penalties. At worst, your freight could sit for hours or days while you find another provider. Choose a large, stable provider that can quickly support a breakdown or other delay that could cost you money.
Related reading: Beware of ‘Reincarnated’ Trucking Companies
Related reading: Reasonable Dispatch
