§13707 — Title 49 Transportation | U.S. Code

Summary

Carriers must not hand over goods at the destination until they are paid for the transportation or service. Under rules the Secretary makes about payment and fairness, carriers can be allowed to release goods before being paid. Those rules can let motor carriers accept weekly or monthly payments and let water carriers use other periodic schedules. Carriers may extend credit to the U.S. Government, a State, a territory or possession, or a local government. For household moves, carriers must release delivered goods when the shipper pays either 100% of a binding estimate, up to 110% of a nonbinding estimate, or a prorated amount for a partial delivery based on the weight delivered. Extra services added after the contract don’t count. For hard-to-do operations shown in the carrier’s tariff, delivery collections can’t exceed 15% of other charges; the rest must be paid within 30 days after the carrier sends its bill.

Title 49, §13707

Transportation — Source: USLM XML via OLRC

(a)Except as provided in subsection (b), a carrier providing transportation or service subject to jurisdiction under this part shall give up possession at the destination of the property transported by it only when payment for the transportation or service is made.

(b)(1)Under regulations of the Secretary governing the payment for transportation and service and preventing discrimination, those carriers may give up possession at destination of property transported by them before payment for the transportation or service. The regulations of the Secretary may provide for weekly or monthly payment for transportation provided by motor carriers and for periodic payment for transportation provided by water carriers.

(2)Such a carrier (including a motor carrier being used by a household goods freight forwarder) may extend credit for transporting property for the United States Government, a State, a territory or possession of the United States, or a political subdivision of any of them.

(3)(A)A carrier providing transportation of a shipment of household goods shall give up possession of the household goods being transported at the destination upon payment of—

(i)100 percent of the charges contained in a binding estimate provided by the carrier;

(ii)not more than 110 percent of the charges contained in a nonbinding estimate provided by the carrier; or

(iii)in the case of a partial delivery of the shipment, the prorated percentage of the charges calculated in accordance with subparagraph (B).

(B)For purposes of subparagraph (A)(iii), the prorated percentage of the charges shall be the percentage of the total charges due to the carrier as described in clause (i) or (ii) of subparagraph (A) that is equal to the percentage of the weight of that portion of the shipment delivered to the total weight of the shipment.

(C)Subparagraph (A) does not apply to additional services requested by a shipper after the contract of service is executed that were not included in the estimate.

(D)Subparagraph (A) does not apply to impracticable operations, as defined by the applicable carrier tariff, except that the charges collected at delivery for such operations shall not exceed 15 percent of all other charges due at delivery. Any remaining charges due shall be paid within 30 days after the carrier presents its freight bill.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

Provisions similar to those in this section were contained in section 10743 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Amendments

2005—Subsec. (b)(3). Pub. L. 109–59 added par. (3).

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.

§13707 Payment of Rates