Reprinted from The Logistics Journal.

The practice of "holding freight hostage" or "holding goods hostage" occurs under either one of two related scenarios. The most likely scenario occurs when a carrier refuses to deliver a shipper's goods in the carrier's possession while en route to a delivery until such shipper pays the carrier for a past due transportation debt. The second scenario occurs when a third party logistics broker ("3PL") requests a carrier to hold goods hostage because the 3PL has not been paid by the shipper for past due amounts. Although the practice is somewhat common, depending on the facts, circumstances, jurisdiction and agreements executed between the applicable parties, hold freight hostage may be either a savvy business idea or an illegal act exposing a party to significant liability.

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