Freight Charges: Avoid Paying Twice

As shippers, Canadian retailers and manufacturers should be aware of potential liabilities related to payment of freight charges. The transportation of a product commonly involves several stakeholders: freight forwarders or brokers and multiple carriers. Who should then be paid?

In the province of Quebec, the shipper is discharged by paying one of the carriers. The outstanding carriers must then address their claims to the paid carrier. However, payment of the freight charges directly to a broker does not generally discharge a shipper of its liability to the carriers.

Where a shipper can get involved in a dispute over the payment of freight charges is when brokers, voluntarily or unknowingly, act as carriers, even though they in fact do not operate any commercial motor vehicles. The shipper may, in this case, be discharged by the payment to the broker, acting as carrier, but other carriers, if any, may of course dispute the qualification of the broker as such. To