Principles and Practices - Failure to Make Payment of Freight Charges

PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND DISPOSITION OF FAILURE TO MAKE PAYMENT OF FREIGHT CHARGES

Failure to make payment of freight charges to subject carriers for services performed as a common carrier by subject carriers, which subsequently results in legal action (such as collections) taken against the debtor, will be subject to the following:
1. Forfeiture of all discounts, allowances, commodity rates, brokerage agreements, incentives or any other rate reductions enjoyed by such debtor, if any, on all unpaid freight bills.
2. A penalty of 125% of the remaining freight bill amount due subject carriers after having added back any forfeitures as described in Paragraph 1.
3. In addition to the provisions of Paragraphs 1 and 2, debtor will be responsible for attorney fees and/or court costs associated with or as a result of any collection action.