Bill recognized that the main advantage the bankruptcy trustees had over shippers was that undercharge
claims usually amounted to a few thousand dollars or less--not enough to warrant hiring a lawyer to defend a case in a bankruptcy court that often was located in another state.
In fact, this practice may explain why PFMA has found that the number of undercharges
generally exceeds that of overcharges.
"Now with interest rates going up rather than down, however, we are finding a swing from [discrepancies resulting in] just overcharges to undercharges
"Do not settle these undercharge
claims," said William J.
Shippers complained that Maislin was unfair and inefficient, while most solvent carriers faced a dilemma: "should a carrier collect the undercharges
and risk the loss of future business from the shipper"?
A carrier that decides to pursue a shipper for undercharges
will lose not only that customer but others, as the fallout from its action discourages customers from using the carrier.
Through an audit of its records it was determined that Maislin had "undercharges
" (the negotiated rate was less than the filed rate) of $187,923 for services provided to Primary Steel, Inc.
(NBWA) president Ronald Sarasin called last week for a legislative solution to the problem of motor carrier rate undercharge
liability currently facing a number of beer distributors.
Retailers lose profits on undercharges
; overcharges create dissatisfied customers.
The principal purpose of the new law was to provide relief for the shipping community from the unconscionable undercharge
claims filed by trustees of bankrupt motor carriers.
If a store is found to have a three-to-one or greater ratio of overcharges to undercharges
for three consecutive inspections, that store must item price; the item pricing continues until it passes four consecutive inspections.
Equally important to shippers and receivers is the avoidance of undercharges
on current and future transportation arrangements.