When comparing 2 shipments of equal vehicles from and to the same city pairs the COD paid shipment will always command a LOWER price, but is also more likely to be filled by a carrier faster. Brokers push loads anyway they can to fill a customer order. COD terms fills orders faster.
We’ve noticed a new strategy. We call it the almost COD broker SCAM. Here’s what happens… a broker books a load with a carrier as a COD, but right before the delivery the broker calls the carrier and asks if we take credit cards, saying the customer doesn’t have the payment ready at the drop. When we say no… we don’t take no stink’n credit cards, the brokers says… OK we do. Deliver the unit and the customer will pay us via credit card, and we’ll make a direct deposit to your account by tomorrow.
The reader I’m sure can see what’s coming next… the broker doesn’t make the deposit as promised and goes into a witness protection program. They stop answering the phone for several days and the carrier is not paid.
Don’t fall for this scam. If there is any doubt that a COD is going to be paid at a delivery, keep the car on your trailer until they show you the money. Driving away from a delivery with a car for non-payment of a COD is hard to do, somehow it always works and you get paid. Never allow a broker to collect your payment on a COD order via credit card. You will get burned.