Lumping is the process of using a third party to unload freight from a container. Warehouses prefer using lumper services because it saves them thousands to millions of dollars in staff and labor costs annually. Unfortunately their is a misconception that these lumper fees are paid by the truck driver. In fact the lumping fee should and usually is in the contract made by the shipper and receiver. If the trucker is suppose to pay for the lumping fee this would already be in the contract and their should be no surprise to the trucker.
Is it common for the lumpers performing the lumping service to not declare their income to the CRA or IRS?
No, Lumping companies are run like any other staffing agency so taxes are deducted and reported to the relevant agencies.
Are Lumper Services Legal?
Yes, Lumper services are legal and part of the supply chain labor force. Lumper services allow warehouses to save money on payroll costs and reduce their on employee injury numbers.
Why is lumping considered a scam?
Lumping is considered a scam because of mis-information on the internet. In reality lumping services play a huge role in the supply chain and are able to save warehouses and distribution centers a lot of money on payroll costs.
How can truckers protect them selves from paying lumper fees?
As soon as truck driver starts working with a trucking company, they need to make sure that the contractual agreement states and sets out how and who lumper service fees will be paid by.
Can you negotiate Lumper Fees?
Lumper fees are already established with the receiving company and cannot be negotiated in most cases.