PREPAYMENT OR GUARANTEE OF CHARGES – ITEM 769

 

Except as provided, shipments will be accepted subject to the following provisions:

SECTION 1

A PREPAID shipment is one on which the charges for transportation service rendered at the request of the consignor, including charges for any accessories services performed at the request of the consignor are to be paid by the consignor.

SECTION 2

A COLLECT shipment is one which the charges for transportation service, including accessorial services  rendered at the request of the consignee, or requested by the consignor for the consignee, are to be paid for by the consignee.

SECTION 3

1. A shipment on which charges are to be paid by a party other than the consignor or consignee will be accepted provided that the consignor has established credit with the carrier picking up the shipment at origin and guarantees to pay the charges if the third party fails to do so within the time allowed under the federal or state credit regulations.

2. A shipment moving under the provisions of this SECTION, will not be accepted if the consignee executes Section 7 of the Bill of Lading.

SECTION 4

If, in the judgment of the carrier picking-up a shipment at origin, the forced sale of the goods would not realize the total charges due at destination, the shipment must be PREPAID.

SECTION 5

1. If a shipment is required by SECTION 4 hereof, or by any provisions of this classification to be PREPAID, it will be accepted on a collect basis if the consignor has established credit with the carrier picking-up the shipment at origin and the consignor guarantees to pay the charges if the consignee fails to do so within the time allowed under the federal or state credit regulations.

2. A shipment moving under the provisions of this SECTION, will not be accepted if the consignee executes Section 7 of the Bill of Lading.