Overage: a shippers mistake that can cost owner operators time and money

Introduction:

When it comes to shipping, overage is an unfortunate situation where the shipper sends more product than intended.1 This can create significant inconveniences and financial losses for owner operators, especially those with only one truck, one trailer, and limited storage options. Occupied with excess cargo, they are unable to pick up and deliver loads until the overage is resolved. Unfortunately, resolving this issue through load boards is often a lengthy process that involves customer service, accounts managers, and communication with the shipper and receiver. In this blog post, we explore the challenges and lessons learned from dealing with overage as an owner operator.

A pain in the pineapple

I  have had overage on two occasions. In the first instance, I was fortunate that it was a common, recurring shipment between that shipper and receiver, so the receiver was able to take the extra product early. However, the second incident proved to be more troublesome.  In this case, the extra product was a pallet and a half of pineapple juice. I used Uber to broker this load and I promptly contacted Uber’s customer service to report the overage and was instructed to wait at the receiver until they obtained disposition2 instructions from the shipper.

Calculating that I had about an hour before I needed to leave for my next pickup, I impatiently waited. However, as the hour passed without any resolution, I had no choice but to depart, hoping that the additional cargo wouldn’t cause issues with my next shipper. Arriving just in time, I informed them of the situation, and after some back-and-forth with management, they agreed to load the trailer along with the pineapple juice. I requested that they load the juice at the rear of the trailer, allowing me to attempt a return to the shipper while delivering the new load.

Acting independently can backfire

I called the shipper and asked if I could bring the pineapple juice back to them free of charge because they were en-route and it wasn’t too much of an inconvenience. However, the person I spoke with in the shipping department explained that she lacked the authority to make such a decision and that it was handled at a different level. This frustrated me because I had found such a perfectly efficient solution to the problem but was not able to execute it because I couldn’t communicate with the appropriate decision making personnel. This frustrating encounter highlighted a common challenge in the trucking industry: as drivers, we often find ourselves distanced from decision-makers, forced to wait for their responses. As an ex-professional I am accustomed to finding a solution to a problem and either making the decision or contacting the person that can make the decision. But I would soon learn that if you act independently, even to make a seemingly smart decision, it can really backfire. 

Because I had yet to hear back from Uber when I arrived at the receiver to deliver the new load, I still needed to figure out what to do with the pineapple juice. Most everyone I talked to agreed that a pallet-and-a-half was not worth the shipper’s time and that they would most likely tell me to discard it. So, together with the receiver, we identified a local food bank, leaving the juice in their care for distribution.

It wasn’t until I was loaded with my next load and on my way to deliver it that Uber called with the disposition instructions from the shipper. Instead of instructing me to dispose of the juice, they wanted me to deliver it to a local less-than-truckload (LTL) carrier.3

Be wary of opportunist in trucking

Realizing the predicament, I told the representative that I had the overage stored at a storage location–which was technically true–and I frantically called the receiver back hoping that they had not yet taken the juice to the food bank. Thankfully, they still had the pineapple juice but when I called I was so fearful and distressed that the person on the phone made me feel like this was such a big inconvenience to them that I agreed to give them $400 for a storage fee, half of the $800 I was to receive from Uber in compensation. But thankfully when I arrived, the owner, who had heard all about the excitement of the pineapple juice, came out of his office while I was talking to the clerk and when I began to give him compensation for the storage fee he absolutely refused any type of payment. That’s when I realized the clerk was trying to pull a fast one.

Plan for overage before it happens

While delivering the juice to the LTL carrier, I spoke with the manager there and we established a relationship. He said that I could use them to store any overage in the future for a reasonable fee. I believe making this connection to be the silver lining in this whole ordeal and if there’s a lesson in this story for owner operators, I would suggest you establish a place to store overage before it happens. This way, you’re not simply waiting for the broker’s instructions and missing out on loads and revenue. Had I waited for Uber I would have waited days and lost the revenue for multiple loads

1. Overage refers to excess freight received over the quantity shipped and listed on a shipping document. A freight overage must be managed – either returned to sender or incorporated into the consignee’s inventory and billed accordingly. https://mercurygate.com/glossary/osd-claims/ 

2. Disposition is a term used to describe the direction and instruction provided by the shipper or customer when product is rejected at delivery.

3.Less than truckload freight shipping (LTL) is used for the transportation of small freight or when freight doesn’t require the use of an entire trailer. This shipping method can be used when freight weighs between 150 and 15,000 pounds. – https://www.freightquote.com/define/what-is-ltl-freight-shipping/