invoices for accessorials after the fact

mtltrans

Member
10
Vitran has a slight habit of billing for freight charges and then billing much later for an accessorial (tailgate, waiting time) that it didn't include on its original invoice.
What have people done here to remedy that and what does the law actually say when it comes to this kind of billing?
Thanks
 

NotForHire

Well-Known Member
20
Vitran has a slight habit of billing for freight charges and then billing much later for an accessorial (tailgate, waiting time) that it didn't include on its original invoice.
What have people done here to remedy that and what does the law actually say when it comes to this kind of billing?
Thanks
depends on the strength of your carrier contract and how much moral integrity you have
 

PackRat

Site Supporter
20
Hi MTL,

talk to you rep or account manager and advise them that as the Payor of the freight no accessorials will be paid unless pre authorized by you prior to service. It's quite common with common carriers where consignee's of prepaid freight will ask for additional services as they are not actually paying for them! They should be able to put a note in the system stating it. As least then you can advise them you've requested they contact you prior for any services moving forward.
 

mtltrans

Member
10
depends on the strength of your carrier contract and how much moral integrity you have

Hi MTL,

talk to you rep or account manager and advise them that as the Payor of the freight no accessorials will be paid unless pre authorized by you prior to service. It's quite common with common carriers where consignee's of prepaid freight will ask for additional services as they are not actually paying for them! They should be able to put a note in the system stating it. As least then you can advise them you've requested they contact you prior for any services moving forward.
Thanks! I did reach out to our rep. Vitran states they don't send notifications for accessorials when a service is rendered or waiting time happens. Our dilemma is that when they send an invoice and then bill something extra like 2 weeks later, our clients dislike that because it basically messes up their payables.
 

PackRat

Site Supporter
20
Wait time is wait time...that's a hard one to manage on a real time basis. The extra services shouldn't be though.
 

PackRat

Site Supporter
20
wait time most definitely needs to be addressed in real time...
Not with a common carrier. They usually don't / can't communicate on every order that has wait time. It's not the same as with smaller direct carriers. The big ones just point to their Tariff and say "wait time is billed at X".
 

Dario

New Member
2
When a carrier sends invoices it's their responsibility to insure that the invoice in whole and complete before sending it. Whether they are a common carrier or a private carrier, the invoice should be finalized before sending it to the broker / customer.
If it is a reoccurring offence, I would address the issue with your representative telling them their accounting team need to review their invoices and confirm them as complete prior to submission, or you will start refusing the revisions. As the recurring offence is causing unnecessary back log and extra work for your and your customer's accounting teams dealing with amendments due to their neglect.
 

Melroy75

Member
10
When a carrier sends invoices it's their responsibility to insure that the invoice in whole and complete before sending it. Whether they are a common carrier or a private carrier, the invoice should be finalized before sending it to the broker / customer.
If it is a reoccurring offence, I would address the issue with your representative telling them their accounting team need to review their invoices and confirm them as complete prior to submission, or you will start refusing the revisions. As the recurring offence is causing unnecessary back log and extra work for your and your customer's accounting teams dealing with amendments due to their neglect.
^agree with this! 2 weeks to bill an accessorial doesn't make sense. Invoices should be complete with freight, accessorial, taxes etc.
 

MikeJr

Moderator
Staff member
30
I always found the situation would dictate how an accessorial could be handled.
First, yes if a supplier repeatedly came after original invoices were sent with add-ons it's kinda shady. However, if the job was like a job site or a location that you would typically find accessorial charges, then perhaps their request is founded? Maybe they are billing out clean to get the clock started for payment and their revision comes after they capture the list of accessorial charges?

I'm just saying there could be more to the story is all.

Keep well, I sure am!
Mike
 

Shakey

Site Supporter
30
Thanks! I did reach out to our rep. Vitran states they don't send notifications for accessorials when a service is rendered or waiting time happens. Our dilemma is that when they send an invoice and then bill something extra like 2 weeks later, our clients dislike that because it basically messes up their payables.
check for any notations on your pod's, that is where they will be doing their adjustments from.

Most billing done overseas for large LTL providers, you wont win trying to fight them on how they do it they will just say see ya!
 

AgentSmith

Member
10
I'm assuming this is LTL and this is typical of many large LTL companies. I have received freight invoices for freight that is delayed in transit and not delivered. This is just another day for LTL shipping.

You agreed to this when setting up the freight with Vitran as part of their terms and conditions or it is in their 100+ page accessorial guide.

For LTL consider yourself lucky if the local truck waited more than 30 minutes on the pick up and did not just carry on to the next pick up and bill you a dead call / freight not available; plus not tell you. The big LTL companies do not call to inform you of waiting time. Some have automated emails informing you of the delay and note that extra charges will apply.

Tailgate charges should not be a surprise (use street view or call the shipper / receiver to confirm) and can easily be built into the billing rate to your customer. All extra charges are in the carriers accessorial guide. I rarely invoice my customer more than once as it annoys them and our admin gets a little grumpy with credit / rebills. To avoid this you can delay the invoicing and wait for all charges or build in a LTL fudge factor in the rate in case of surprise accessorial charges.

As others have mentioned, develop a good relationship with your sales rep and see if they can mitigate the issue or find a way to get you better insight in pending charges.
 

mtltrans

Member
10
Not with a common carrier. They usually don't / can't communicate on every order that has wait time. It's not the same as with smaller direct carriers. The big ones just point to their Tariff and say "wait time is billed at X".
True, we found this with other carriers besides Vitran.
 

Nawk

Well-Known Member
20
Being a guy that's lived on both sides of the fence.

This is as big of a pain in the ass for the carrier as it is for the customer.

As a customer... know where your shipping to/from and cost your side accordingly

This will lessen disputes... and make it easier for your carrier to hear you and work with you when their is one.
 

MikeJr

Moderator
Staff member
30
Funny story, mostly because I never have to deal with this particular carrier again... I wonder if I told this one before, perhaps I did.

Carrier to my accounting: Why didn't you pay this driver assist/inside delivery charge?
Accounting at my former employer to me: Mike, take care of this would you?
Me to carrier accounting: The rate quote we received as well as the carrier confirmation sheet we sent to you included pickup, linehaul, TG delivery and FSC. It's all we asked for and we were never contacted about inside delivery.
Carrier accounting: But the receiver requested that the driver bring the goods inside.
Me: Um, our agreement was concluded at the time the skid hit the ground. If other arrangements were made after that with the consignee, then I would suggest the charges are discussed with them.
Carrier Accounting: You're our customer, they are not.
Me: Ok, I'll see what I can do for you.
Me to receiver: Hey, that delivery we arranged for you a couple of months back, did you request an inside delivery at the time the driver arrived? I'm being billed for it.
Receiver: I'm not certain, maybe but probably not.
Me to carrier accounting: I can't say for certain the driver assist was requested nor is there any evidence of it happening. What is stopping you from charging me this on every delivery you do for me as a cash grab?
Carrier accounting: your account is closed.

I never looked back and we were perefectly happy to give our business to companies that want to work together rather than treat every interaction as an opportunity to stick it to you.

Anyway, I've got to say I don't miss having those kinds of conversations at all. My biggest problem today is that we're changing 2 bathroom layouts because we want to put in larger showers. The framers are a little pissed because they had to move a small non load bearing wall, but it's complete and water under the bridge now.

Keep well, have a fantastic weekend,
Mike
 

Trukker

Active Member
10
I just had good one .
I was at a customers for company sponsored breakfast .
Carrier rolls up to load and driver hops out and was offered breakfast and takes about an hour and enjoys and nice big breakfast then gets in truck and loads in about 30 mins .
Carrier calls and wants 2 hrs waiting time .......................
 

Igor Galanter

Well-Known Member
30
And me, driving around GTA locally seeing Vitran drivers sitting on side of the roads stretching their day and then lining up by the company entrance after 5-6 pm checking in...
 
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