Once is Not Enough: Shipper Required to Pay Freight Twice says Canadian Court
In Canada, and no doubt elsewhere, the relationship between shippers, freight forwarders and carriers generally works to the mutual benefit of all. However, in tough economic times, the bankruptcy of a freight forwarder often will leave the carrier and shipper little choice but to litigate a dispute over the freight. The not unusual circumstances involve a situation where the shipper paid the freight forwarder upon being invoiced but the freight forwarder went out of business without having paid the freight to the carrier. In a recent Federal Court of Canada decision the court was faced with just this problem.