Convoy removes debate over lumper fees with payment option

Convoy lumper payments

have a complicated history in the trucking industry. Some shippers require
them. Some carriers require them. Who ultimately pays them is sometimes a
matter for debate.

A lumper is someone who loads or
unloads a trailer. In some cases, particularly in food warehousing or grocery
companies, the shippers require the use of lumpers. However, Title 49 of the
United States Code, § 14103 says that it is up to the discretion of the driver
as to whether to use a lumper if he or she is not going to be compensated for
the lumper’s service. Even in cases in which reimbursement is approved, it is
the carrier’s responsibility to pay the lumper and then seek reimbursement from
the shipper or broker. In about 9% of the cases, that reimbursement never
comes, according to Convoy.

The digital freight company is
trying to change this for carriers by introducing hassle-free lumper payments nationwide.

“We’ve seen lumper payments ranging
from $50 to over $500, so any time a carrier is not paid back, it is a really
bad experience. And even when they get paid, it’s an additional burden for
drivers to chase reimbursements,” Ziad Ismail, Convoy chief product officer,
told FreightWaves. “Convoy handles the payment by issuing the carrier an EFS
(electronic funds source) code directly [through an EFS integration into the
Convoy app]. The carrier uses this code as payment for the lumper service.”

The goal is to remove the burden
carriers face in waiting for reimbursement. Once a lumper code is received,
Convoy accepts responsibility for securing payment for the lumper’s services.
In some cases, the lumper may require payment at the time of service or in
cash. In these instances, the carrier can still get reimbursed quickly.

“We understand that there may be a
circumstance in which the lumper services require cash payment. We support that
as well,” Ismail said. “In those circumstances, carriers can pay cash to a
lumper and then request reimbursement through the Convoy app. To do this, they
select ‘I already paid’ and submit a receipt for reimbursement through the app.”

Convoy said that approximately 35%
of the loads in its network require lumper services, but the option for lumper
payments is available for all loads.

“Different loads going to the same
facility may or may not require services,” Ismail said. “The facility informs
carriers whether a lumper service is needed at the time of arrival. Convoy
therefore makes this feature available for all loads in the event a lumper
service is needed.”

All the driver needs to request
lumper payment is the lumper company name and the fee amount. This eliminates
time waiting for a shipper or broker to approve lumper service, a process that
can take hours in some cases, Convoy said.

Taber Harden, owner of TT Hauling
in Stockbridge, Georgia, was one of the trial fleets for the service and came
away impressed.

“Requesting lumper payments is one
of the most frustrating and inefficient processes I have to deal with on a
daily basis,” he said. “Now it takes just seconds to request and receive a
lumper payment code in the Convoy app, which saves me time so I can be more
productive every day.”

That’s the ultimate goal, Ismail

“Dealing with lumper payments has
been a major pain point for carriers, yet the experience fundamentally hasn’t
improved for carriers for decades,” he said. “With hassle-free lumper payments,
we are excited to simplify the time-consuming process of retrieving lumper
payment codes and eliminate those out-of-pocket expenses for carriers.”