The scenario you present doesn't happen. All COD shipments are paid in full before the doors are opened. That is a government regulation, and must be adhered to. If the customer doesn't pay in full, the doors are never opened.

The downside of doing HHG is that there can be a lack of shipments. I've had full months where there were no available loads. I've had do deadhead over 1000 miles to pick up a load.

The other downside, which relates to what you were asking, is claims. In HHG, you have to cover your butt in the beginning with the inventory, or it can come back to haunt you in claims. There are some less than honest shippers, commonly people who move several times, who will file claims on items they knew were damaged before the move. I can't even count the times I've heard shippers say "Go ahead and drop that TV - I'd like to get a new one". What they don't realize is that the cost of that new TV would come directly out of my pocket.

Unlike regular freight hauling, every single piece needs to be handled with TLC to avoid a costly claim. It isn't just a matter of having a forklift put a skid of shrink wrapped freight in the right spot to make your axle weights correct - every piece needs to be inspected, inventoried, wrapped, and loaded so as to avoid damage in transit. Even with the most diligent care taken at origin, sometimes things do get damaged. Those claims can add up quickly if you're not careful.

On a full trailer shipment, I can have an inventory that is about 25-30 pages long. Usually about half of that is boxes. That's upwards of 400-500 items that were inspected, tagged, inventoried, wrapped, and placed in JUST the right spot in the trailer. Each of those steps takes a skill that can't really be taught. Sure - you can tell someone all the damage codes, but it isn't until you are in a real world scenario that you know how to treat those damage codes on an inventory form.

 

From the Moves I had while in the service, the mover listed everything as already having scratches scuffed up and or torn.

Some would claim for any little thing. I did only if something was missing, or broken completely. Which was never. When I bought furuture I knew I would be moving often so I bought what I did not mind getting scatched Scuffed. 3 years here then move for another location for 3 years.

 

Rev, How does your insurance payments for broken freight work?

 

I don't carry insurance for broken freight - it comes straight out of my pocket. Each customer purchases insurance from the carrier, and that insurance determines how a claim is handled.

For example, if a customer purcheses full replacement value protection, and an item gets damaged, we have an inspector come out to determine if the item can be repaired. If it can be, then I am responsible for the cost of the repair, the cost of the inspection, and an administration fee. If the customer goes with standard insurance, which is $0.60 per pound, then the amount I'm liable for is determined by the weight of the item. For example, if I dropped a 100 lb. TV, I would be responsible for a $60.00 claim, no matter the value of the TV.

 

After you get their stuff in their house, they sign you off as no damage and can't come from behind later?

 

They have a set period of time to file a claim. It all depends upon the contract. Most are 90 days from delivery. Autos are 48 hours from delivery.

And to answer your next question - yes - I've had people break stuff after I left, and then file a claim on it.

 

I'm leased to an Ontario carrier (Canada) who pays $1.12/mi for all miles and $1.30/mi for trips between Ontario and North-East USA. Plates and insurance are extra. They also pay FSC which is tied to the cost of yard fuel in Guelph, ON (around 20 cents/mi now).

The best run I've had so far was from Amherstburg, ON to Windsor, ON (11 miles one way) where I hooked up to a preloaded 53' dry van trailer, dropped it in Windsor and bobtailed back to Amherstburg for the next one. Each trip paid ... $140 to the truck (Cnd$150). That's 140 / 22 = $6.36/mi!

And this is with a regular dry van trailer - no tarps, no straps, no chains :shock: :wink: :lol:

 

1.75 a mile, plus 44% fuel surcharge, and $100 an hour for demurage after one hour for regular tanker, $150 an hour demuarge for vac tanker.