Create a free Overdrive account to continue reading

Carrier claims Amazon fraudulently skimped on payments

user-gravatar Headshot
Updated May 10, 2017

LTL carrier Central Freight Lines (No. 108, CCJ Top 250) has accused retail giant Amazon of shorting owed payments to the carrier to the tunes of millions of dollars. Central filed a lawsuit against Amazon in late April, alleging the online retailer’s private shipping firm Amazon Fulfillment Services refused to honor the rates and payment structure determined by the companies’ contract.

Amazon did not respond to a request for comment on the lawsuit or the allegations made by Central Freight Lines.

Central Freight filed its lawsuit in a U.S. district court April 27. The carrier claims Amazon owes Central $2.4 million in past due payments and nearly $1 million for services Amazon withheld but was was contractually required to award to the carrier.

The Waco, Texas-based carrier says Amazon claimed Central Freight overcharged the carrier and “attempted to force Central Freight to accept billing and procedure changes that Central Freight never agreed to.” Central Freight says Amazon “[used] economic power to wrongly and unilaterally force unfair contractual modifications.” The carrier has asked the court award it owed payments and interest on those payments, as well as court costs and attorney’s fees.