Title 49, TransportationRelease 119-110

§13707 Payment of Rates

Title 49 › SUBTITLE IV — INTERSTATE TRANSPORTATION › PART B — MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS › CHAPTER 137 — RATES AND THROUGH ROUTES › § 13707

Last updated Sep 22, 2026|Official source

Summary

Carriers that move goods under this law must not hand over a shipment at the destination until they are paid for the transportation or service. The Secretary can create rules that let carriers release goods before payment to prevent unfair treatment. Those rules can allow motor carriers to be paid weekly or monthly and water carriers to be paid on a periodic schedule. Carriers may extend credit to the U.S. Government, states, territories, or local governments. For household moves, carriers must release goods if the shipper pays 100 percent of a binding estimate, up to 110 percent of a nonbinding estimate, or a prorated amount for a partial delivery based on weight. Extra services added after the contract are not covered. For operations called impracticable by the carrier, the carrier can collect at delivery no more than 15 percent of other charges and must bill the rest; unpaid charges are due within 30 days after the freight bill.

Full Legal Text

Title 49, §13707

Transportation, Source: USLM XML via OLRC

(a)Transfer of Possession Upon Payment.—
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)Exceptions.—
(1)Regulations.—
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)Extensions of credit to governmental entities.—
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)Shipments of household goods.—
(A)In general.—
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)
(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)Calculation of prorated charges.—
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)Post-contract services.—
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)Impracticable operations.—
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.

Legislative History

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.

Reference

Citations & Metadata

Citation

49 U.S.C. § 13707

Title 49, Transportation

Last Updated

Sep 22, 2026

Release point: 119-110