Title 49TransportationRelease 119-73

§13706 Liability for payment of rates

Title 49 › Subtitle SUBTITLE IV— - INTERSTATE TRANSPORTATION › Part PART B— - MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS › Chapter CHAPTER 137— - RATES AND THROUGH ROUTES › § 13706

Last updated Apr 6, 2026|Official source

Summary

When a truck carrier delivers goods to someone who did not send them, these rules say who must pay the shipping charges. If the receiver is only an agent and does not own the goods, the receiver must pay the charges shown when the goods are delivered. The receiver will not have to pay extra charges found later if, before delivery, they give the delivering carrier a written notice saying they are an agent and naming the real owner and that owner’s address when the goods are being sent to a different place than the original papers. If the receiver only pays the delivery charges, the sender, or if rerouted the real owner, must pay any extra charges later. The real owner pays all charges if an agent reroutes the goods and they are then refused or abandoned at the final place, but only if the agent gave the carrier notice of agency and the owner’s name and address when rerouting. If the receiver gives the carrier the wrong owner information, the receiver must pay the extra charges.

Full Legal Text

Title 49, §13706

Transportation — Source: USLM XML via OLRC

(a)Liability for payment of rates for transportation for a shipment of property by a shipper or consignor to a consignee other than the shipper or consignor, is determined under this section when the transportation is provided by motor carrier under this part. When the shipper or consignor instructs the carrier transporting the property to deliver it to a consignee that is an agent only, not having beneficial title to the property, the consignee is liable for rates billed at the time of delivery for which the consignee is otherwise liable, but not for additional rates that may be found to be due after delivery if the consignee gives written notice to the delivering carrier before delivery of the property—
(1)of the agency and absence of beneficial title; and
(2)of the name and address of the beneficial owner of the property if it is reconsigned or diverted to a place other than the place specified in the original bill of lading.
(b)When the consignee is liable only for rates billed at the time of delivery under subsection (a), the shipper or consignor, or, if the property is reconsigned or diverted, the beneficial owner is liable for those additional rates regardless of the bill of the lading or contract under which the property was transported. The beneficial owner is liable for all rates when the property is reconsigned or diverted by an agent but is refused or abandoned at its ultimate destination if the agent gave the carrier in the reconsignment or diversion order a notice of agency and the name and address of the beneficial owner. A consignee giving the carrier erroneous information about the identity of the beneficial owner of the property is liable for the additional rates.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 10744 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Statutory Notes and Related Subsidiaries

Effective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

Reference

Citations & Metadata

Citation

49 U.S.C. § 13706

Title 49Transportation

Last Updated

Apr 6, 2026

Release point: 119-73