Part 377 — Payment of Transportation Charges
49 CFR Part 377: Rules governing cash-on-delivery (COD) freight shipments and remittance requirements.
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49 CFR Part 377 governs the payment of transportation charges for cash-on-delivery (COD) shipments by for-hire motor carriers of property. COD shipments are those where the carrier is responsible for collecting payment from the consignee at delivery on behalf of the shipper, then remitting those funds to the shipper.
Under Part 377, carriers that offer COD service must publish tariff rules governing that service. The regulation sets a 15-day deadline for remitting COD collections to the consignor or payee after delivery of the shipment. Carriers that choose not to publish their own COD tariff must instead remit collections directly within that 15-day window without deduction.
Part 377 does not apply to transportation performed on railroad bills of lading or to shipments performed for freight forwarders on freight forwarder billing. It applies to general for-hire property carriers subject to 49 U.S.C. 13702 that offer COD service to shippers.
Key Provisions
- Governs carriers that handle cash-on-delivery (COD) freight shipments in interstate commerce.
- Requires carriers offering COD service to publish tariff rules governing the service.
- Sets a 15-day deadline for remitting COD collections to the consignor after delivery.
- Does not apply to transportation on railroad bills of lading or freight forwarder billing.
- Applies to for-hire carriers of property subject to 49 U.S.C. 13702.
Why It Matters to Truck Owners
Carriers handling COD loads — where they collect money at delivery on behalf of shippers — must have COD procedures and remittance timelines in place under Part 377. Failure to remit COD collections within the required timeframe exposes carriers to liability claims from shippers. If you run a delivery operation that handles any COD freight, this part directly applies to your billing practices.
Frequently Asked Questions
What is a COD shipment under Part 377?
A COD (cash on delivery) shipment is one where the carrier collects a specified amount from the consignee at the time of delivery on behalf of the shipper, then remits those funds to the shipper. The carrier acts as the collection agent for the shipper.
How quickly must a carrier remit COD funds?
Under Part 377, carriers must remit COD collections to the consignor or payee within 15 days after delivery of the shipment. If the carrier has published a COD tariff allowing a different arrangement, those tariff terms govern, but the 15-day default applies otherwise.
Does Part 377 apply to all trucking companies?
No — Part 377 applies specifically to for-hire carriers of property subject to federal rate regulation under 49 U.S.C. 13702 that offer COD service. Carriers that do not offer COD service, and private carriers hauling their own goods, are not subject to Part 377.
Read the official legal text: 49 CFR Part 377 — eCFR.gov (official)
Related Federal Trucking Laws
- Part 373 — Receipts and Bills for Property Transported
- Part 378 — Overcharge, Duplicate Payment, and Overcollection Claims
This page is provided for informational purposes only and is not legal advice. Always verify current requirements at fmcsa.dot.gov or with a qualified transportation attorney.
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