Before Signing Your Carrier Agreement, Check for Built-In GSR Waivers

by | Jul 1, 2016

1 min read


Recently, my colleague Andy Brueckner wrote an article about Guaranteed Service Refund Waivers (GSR Waivers) that many companies who ship small parcel are misled into believing they must sign. In essence, these GSR Waivers prohibit companies who sign them from utilizing an independent parcel auditor to recover money owed to them for late deliveries, incorrect parcel sizes, and other carrier mistakes.

Obviously, signing these waivers can have a substantial and negative monetary impact, as it essentially eliminates the company’s ability both to receive refunds and to foster a sense of mutual accountability between them and their carrier partner. Not quite as obvious is the simple fact that companies are under no obligation to sign these waivers.

But now there is something else for companies to consider: it may no longer be enough just to choose not to sign the GSR Waiver—in fact, you may need to search your contract before signing it to make sure it wasn’t built in to your agreement!

How do we know? At VeriShip, our proprietary software allows us to take a deep dive into the shipping histories of the companies who work with us. As a result, we began to notice some trends that indicated more companies are signing the waivers. After looking into the contracts, we noticed that language similar to what is typically used in the waivers was now appearing standard in contracts.

In other words, if you ship small parcel, you need to be careful to have these clauses removed before signing your carrier agreement—otherwise, you might be stuck unable to obtain refund credits that could significantly reduce your parcel spend.

To learn more about GSR Waivers, including the ways that carriers typically entice shippers to sign them, read last week’s article here.

Topics: Carrier Invoice Auditing, Carrier Negotiation, Contract Negotiation