Supreme Court rules logistics firms cannot deduct management fees from safe freight rates

The Supreme Court ruled on March 12 in case 2024Da297254 that a truck owner sued a logistics firm regarding payments where the company deducted approximately 10 percent of monthly amounts as a management fee for services including reverse tax invoice processing.

The ruling clarifies that allowable deductions during the 2021 and 2022 operational periods were strictly limited to entry fees and parking charges as specified in Ministry of Land, Infrastructure and Transport notices. Fees related to commercial license plate usage were only permissible under 2020 guidelines, and the contested management fees matched neither category. The court reasoned that allowing deductions beyond these specific items would violate the core purpose of the Safe Freight Rate System, which was temporarily introduced until December 31, 2022.

Although the 2020 guidelines stated that matters not specified in the rates should follow mutual agreement provided no laws are violated, the justices determined this clause does not override the explicit limits on cost deductions.