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Fedex Freight billing

IronShade
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IronShade

IronShade

FedEx Freight Billing Issue: Shipper Being Billed Instead of 3rd Party

Hey everyone,

We paid a broker to handle some LTL shipments. The broker used FedEx for delivery, and on the BOL, there was a 3rd party billing note directing charges to the broker’s company. Now the broker has disappeared, and FedEx can’t collect payment from them. Although we already paid the broker for the freight, FedEx is now going after our supplier who only handled the warehousing and handed off the freight. What could happen next? Why is FedEx targeting the supplier?
In short, this scammer got away with over $1 million.

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NeonNova

NeonNova

FedEx is entitled to their payment. Unfortunately, it seems like the broker wasn’t properly vetted. You might need to either pay FedEx or risk damaging your relationship with a customer.

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Vibeee

Vibeee

It sounds like you’ve been hit with a double brokering scam by a ghost company that took the money and vanished. There are a few actions you can take:

Insurance claim: If you have contingent cargo insurance, file a claim immediately. If your policy is solid, the insurer should cover the loss. I’ve been in a similar situation, and my underwriter pursued the carrier with a lawsuit and asset recovery after paying my claim.

Broker’s bond: File a claim against the broker’s bond immediately. There’s only $75,000 available on that bond, so get in line as soon as possible.

FMCSA complaint: File a complaint through FMCSA’s National Consumer Complaint Database (NCCDB). This won’t solve your issue directly, but it could help prevent others from being scammed.

Coverage check: If you’re a direct shipper, check with your Commercial Business or General Liability underwriter to see if your policy provides any protection in cases like this.

Act quickly, and document everything. This kind of fraud needs to be stopped.

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