U.S. Code » Title 49 » Subtitle SUBTITLE IV— INTERSTATE TRANSPORTATION › Part PART B— MOTOR CARRIERS, WATER CARRIERS, BROKERS, AND FREIGHT FORWARDERS › Chapter CHAPTER 137— RATES AND THROUGH ROUTES

49 U.S.C. § 13707

Payment of rates

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(a)Transfer of Possession Upon Payment.—Except as provided in subsection (b), a carrier providing transportation or service subject to jurisdiction under this part shall give up possession at the destination of the property transported by it only when payment for the transportation or service is made.(b)Exceptions.—(1)Regulations.—Under regulations of the Secretary governing the payment for transportation and service and preventing discrimination, those carriers may give up possession at destination of property transported by them before payment for the transportation or service. The regulations of the Secretary may provide for weekly or monthly payment for transportation provided by motor carriers and for periodic payment for transportation provided by water carriers.(2)Extensions of credit to governmental entities.—Such a carrier (including a motor carrier being used by a household goods freight forwarder) may extend credit for transporting property for the United States Government, a State, a territory or possession of the United States, or a political subdivision of any of them.(3)Shipments of household goods.—(A)In general.—A carrier providing transportation of a shipment of household goods shall give up possession of the household goods being transported at the destination upon payment of—(i) 100 percent of the charges contained in a binding estimate provided by the carrier;(ii) not more than 110 percent of the charges contained in a nonbinding estimate provided by the carrier; or(iii) in the case of a partial delivery of the shipment, the prorated percentage of the charges calculated in accordance with subparagraph (B).(B)Calculation of prorated charges.—For purposes of subparagraph (A)(iii), the prorated percentage of the charges shall be the percentage of the total charges due to the carrier as described in clause (i) or (ii) of subparagraph (A) that is equal to the percentage of the weight of that portion of the shipment delivered to the total weight of the shipment.(C)Post-contract services.—Subparagraph (A) does not apply to additional services requested by a shipper after the contract of service is executed that were not included in the estimate.(D)Impracticable operations.—Subparagraph (A) does not apply to impracticable operations, as defined by the applicable carrier tariff, except that the charges collected at delivery for such operations shall not exceed 15 percent of all other charges due at delivery. Any remaining charges due shall be paid within 30 days after the carrier presents its freight bill.(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 873; amended Pub. L. 109–59, title IV, § 4203, Aug. 10, 2005, 119 Stat. 1752.)Editorial NotesPrior Provisions

Provisions similar to those in this section were contained in section 10743 of this title prior to the general amendment of this subtitle by Pub. L. 104–88, § 102(a).

Amendments

2005—Subsec. (b)(3). Pub. L. 109–59 added par. (3).

Statutory Notes and Related SubsidiariesEffective Date

Section effective Jan. 1, 1996, except as otherwise provided in Pub. L. 104–88, see section 2 of Pub. L. 104–88, set out as a note under section 1301 of this title.

Notes of Decisions
Cited in 8 cases (1 in the last 5 years), 1996–2021 · leading case: Transit Homes of Am. v. Homes of Legend, Inc., 173 F. Supp. 2d 1192 (N.D. Ala. 2001).
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Transit Homes of Am. v. Homes of Legend, Inc., 173 F. Supp. 2d 1192 (N.D. Ala. 2001). · cites it 5× “Jurisdiction under 49 U.S.C. § 13707 Morgan also contends that this Court has original jurisdiction under 28 U.”
Transit Homes of Am. v. Homes of Legend, Inc., 173 F. Supp. 2d 1185 (N.D. Ala. 2001). “§ 13707 (“[A] carrier providing transportation or service subject to jurisdiction under this part shall give up possession at the destination of the property transported by it only when payment for the transportation or service is made.”) The Court concludes, however, that…”
Marine Bank v. Taz's Trucking Inc., 2005 WI 65 (Wis. 2005). “See 49 U.S.C. § 13707 . 9 Taz's argues that the Schneider National case is distinguishable, because in that case there existed a contract between the consignor and the trucking company regarding payment of freight charges.”
Chen v. Mayflower Transit, Inc., 315 F. Supp. 2d 886 (N.D. Ill. 2004). “Extortion and Theft Mayflower argues that it is “required by statute [ 49 U.S.C. § 13707 ] to withhold delivery until payment is made.”
Frey v. Bekins Van Lines, Inc., 748 F. Supp. 2d 176 (E.D.N.Y 2010). “First, Plaintiffs allege a cause of action pursuant to 49 U.S.C. § 13707 (b)(3) (A) (ii) (“Section 13707”).”
Fracht FWO Inc. v. TPR Holdings LLC (S.D.N.Y. 2021). · cites it 3× “In their opposition to Defendant’s motion to dismiss, Plaintiff appears to suggest that 49 U.S.C. § 13707 (b)(1) and 49 C.F.R. § 377.”
United States v. Melinda Campbell (6th Cir. 2019). “See 49 U.S.C. § 13707 (a). According to the Campbells, they lawfully refused to deliver cargo—under these default carrier’s liens—until their customers paid.”
Wallach v. Reo Distrib. Servs., Inc. (In re Alumni Enter. Inc.), 191 B.R. 554 (Bankr. W.D.N.Y. 1996). “873 (1995) (to be codified as 49 U.S.C. § 13707 ). . These ten factors are as follows: "1) The carrier historically looked solely to the consignor for payment.”
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