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ARTICLE · 22 FEBRUARY 2019

Unpacking The Crate: A Carrier's Tools For Collecting Unpaid Freight Charges

The modern shipping industry has drastically influenced the complexity of cargo movements.

CanadaTransport

The modern shipping industry has drastically influenced the complexity of cargo movements. Not only has the advent of intermodal shipping processes expanded the parties involved in moving cargo to its destination, a proliferation of freight forwarders, load brokers and other intermediaries has placed layers of separation between shippers, carriers and consignees.

All of this has the effect of increasing the risk to the carriers who actually move the cargo from one location to another. With the growing complexity of logistics transactions and the industry as a whole, carriers often risk losing out on the payment of freight charges if an intermediary goes bankrupt or otherwise decides to withhold payment. As Hearn et al., discuss, the US approach is a principled policy stance that the carrier always gets paid,1 be it from the shipper or the consignee.2 Although the law in Canada is not so straightforward, carriers have a myriad of legal tools to collect on unpaid

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