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Digital freight broker Convoy announced the launch of hassle-free lumper payments, available directly in Convoy’s mobile app, calling it an industry-first feature.
Lumpers are third-party companies that shippers use to load or unload freight from trucks at their facilities. More than 35% of carriers in Convoy’s network has required lumper services on a shipment, ranging from $50 to more than $500 for the service.
Carriers now can request and receive lumper payment codes immediately, with just a few taps on their mobile device — eliminating phone calls and out-of-pocket expenses that can take weeks to be reimbursed, according to the Seattle-based company.
Every load offered on Convoy’s digital freight network is eligible for this feature. Carriers select the lumper fee in the Convoy mobile app, enter lumper information, and tap submit. Convoy then instantly provides a source code from Electronic Funds Source that the carrier uses as payment for the lumper service. EFS is a Wex Inc. company.
Up to 9% of carriers cite that their traditional brokers never pay them back for the amount spent on lumpers, Convoy said in a release.
“Dealing with lumper payments has been a major pain point for carriers. Yet, the experience fundamentally hasn’t improved for carriers for decades,” said Ziad Ismail, Convoy’s chief product officer. “We are excited to eliminate those out-of-pocket expenses for carriers.”
The 1980 Motor Carrier Regulatory Reform and Modernization Act, the landmark legislation that revised the federal regulation of trucking, addressed the issue of lumpers.
“Whenever the shipper or receiver of the property transported under [a written] contract requires that the operator of the vehicle load or unload any part of the property onto or from the vehicle contrary to any provision of such contract, the shipper or receiver shall compensate the owner or operator of the vehicle for all costs associated with loading or unloading that part of the property,” according to the law.
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