How to Resolve Freight Payment Disputes: A Step-by-Step Legal Guide for Carriers

In the logistics world, timely payments are essential to keep trucks moving and operations profitable. But when brokers or shippers delay or deny payment, it creates serious problems for carriers. That’s where freight payment dispute resolution comes in.

This guide walks you through the legal options available for resolving freight payment disputes, how to identify the best course of action, and when to engage a freight payment dispute lawyer. Whether you’re dealing with unpaid freight invoices or freight broker non-payment, you have legal rights—and there are effective tools to help you get paid.

What Is Freight Payment Dispute Resolution?

Freight payment dispute resolution refers to the process of settling disagreements over freight charges or unpaid invoices. These disputes can arise between:

• Carriers and brokers
• Carriers and shippers
• Brokers and shippers
• Brokers and consignees

They usually involve disagreements over:

• Who is responsible for payment
• The amount due
• Delivery performance issues
• Damages or delays

Effective freight payment dispute resolution requires documentation, legal knowledge, and swift action.

Common Causes of Freight Payment Disputes

Disputes typically stem from:

• Freight broker non-payment due to insolvency or fraud
• Double brokering confusion, where payment is misdirected
• Lack of signed documentation
• Unclear contracts that don’t define who pays
• Claims of delayed delivery or damaged cargo

   

These scenarios often lead to unpaid freight invoices, which directly impact your bottom line.

Step-by-Step Guide to Resolving Freight Payment Disputes

✅ Step 1: Review Your Documents

Before taking action, gather:

• Rate confirmations
• Invoices
• Bills of lading (BOL)
• Proof of delivery (POD)
• Any email or text communications

This documentation will support your position in any freight payment dispute resolution process.

✅ Step 2: Contact the Other Party Directly

Start with a formal, professional message requesting payment. Include:

• A summary of the load
• The amount due
• A deadline for payment

Keep a written record of all communications. If there’s no response, or the other party refuses to cooperate, escalate to the next step.

✅ Step 3: Send a Formal Demand Letter

A freight payment dispute lawyer can draft a demand letter that:

• Lays out the facts
• Cites the relevant laws or contract terms
• Sets a final payment deadline
• Warns of bond claims or legal action

Demand letters are often the turning point in resolving unpaid freight invoices—especially when the broker wants to avoid a formal dispute.

✅ Step 4: File a Bond Claim

If you’re dealing with freight broker non-payment, filing a claim against the broker’s FMCSA-required surety bond (BMC-84) may be your next move.

To file a bond claim:

1. Find the broker’s MC number via FMCSA’s SAFER database.
2. Contact the surety company.
3. Submit rate confirmation, POD, invoice, and demand letter.

Most bond claims are resolved within 30–90 days if the claim is valid and properly supported.

✅ Step 5: File a Lawsuit or Begin Arbitration

If mediation and bond claims fail, you can file a lawsuit for breach of contract or pursue arbitration (if required by contract).

Legal action may result in:

• A judgment in your favor
• Court-enforced collection
• Payment through liens or garnishments

A freight payment dispute lawyer ensures your case is properly filed and represented.

Legal Options for Carriers

Depending on your contract and the parties involved, your freight payment dispute resolution options may include:

• Bond claims (against brokers)
• Lawsuits (against brokers, shippers, or consignees)
• Arbitration (if contractually required)
• Mediation (for negotiated settlement)

Each route has pros and cons—timing, cost, and enforceability—so choosing the right option matters.

How a Freight Payment Dispute Lawyer Helps

An experienced lawyer can:

• Review your contracts and documentation
• Send formal notices and demand letters
• File bond claims and court cases
• Represent you in settlement discussions

If your unpaid freight invoices are piling up or you’ve already been ghosted by a broker, legal representation is often the most efficient way to recover what you’re owed.

Preventing Future Payment Disputes

Avoiding freight payment dispute resolution altogether is ideal. Here’s how to protect yourself:

• Vet brokers via FMCSA and freight forums
• Use written rate confirmations
• Submit complete documentation immediately
• Set clear payment terms and penalties
• Follow up consistently and professionally

Many payment problems can be avoided through better onboarding and communication systems.

FAQs About Freight Payment Dispute Resolution

What is the best way to resolve freight payment disputes?

Start with documentation and professional communication. If that fails, use legal tools like demand letters, bond claims, or lawsuits depending on the situation.

Can I go straight to court?

Yes, if your contract allows it. But some agreements require arbitration or mediation first—check the terms carefully.

How long do I have to act on unpaid freight invoices?

Bond claims must usually be filed within 12 months of delivery. Lawsuits are subject to a statute of limitations (typically 2–4 years, depending on your state).

Protect Your Freight Business with Smart Dispute Resolution

If you’re dealing with freight broker non-payment or unpaid freight invoices, you don’t have to face it alone. The right legal strategy can help you recover payment faster and prevent future problems.

At Freight Collection Solutions, we specialize in freight payment dispute resolution—helping carriers and logistics companies recover funds through legal action, bond claims, and negotiation. From demand letters to litigation, we’ve got your back.