A broker-carrier agreement is an essential document that outlines the terms and conditions that govern the relationship between a freight broker and a carrier. It provides a framework for a successful partnership that benefits both parties. However, creating an agreement from scratch can be a daunting task. In this article, we will show you a sample broker-carrier agreement to help you understand what goes into creating a successful agreement.
Introduction
This Broker-Carrier Agreement (“Agreement”) is made and entered into on [Date of Agreement] by and between [Broker’s Name, Address, and Phone Number] (“Broker”) and [Carrier’s Name, Address, and Phone Number] (“Carrier”).
Purpose
The purpose of this Agreement is to establish the terms and conditions of a contractual relationship between the Broker and the Carrier for the transportation of freight through brokers’ transportation services.
Responsibilities of the Broker
The Broker agrees to:
1. Provide an electronic or written confirmation of all load requirements.
2. Communicate all load details to the Carrier, including but not limited to pickup and delivery locations, dates, and times.
3. Provide Carrier with all necessary information and documents related to the load, including the bill of lading, rate confirmation, and any other pertinent details.
4. Verify that the Carrier is authorized and registered with the United States Department of Transportation (USDOT) and the Federal Motor Carrier Safety Administration (FMCSA).
5. Ensure that the Carrier’s cargo insurance and liability insurance meet the requirements of the Broker and its customers.
6. Settle carrier payments within thirty (30) days of receipt of an invoice.
Responsibilities of the Carrier
The Carrier agrees to:
1. Transport the Broker’s loads with the utmost care and diligence.
2. Verify that all load details are correct, including but not limited to pickup and delivery locations, dates, and times.
3. Notify the Broker immediately in the event of any delay or problem with the load.
4. Maintain all applicable licenses and permits required by the USDOT and FMCSA.
5. Maintain cargo insurance and liability insurance that meet the requirements of the Broker and its customers.
6. Bill the Broker for the agreed-upon rate for the load.
Compensation
The Carrier shall be compensated according to the rates agreed upon between the parties. The Broker shall pay the Carrier within thirty (30) days of receipt of an invoice for the services performed.
Termination of Agreement
Either party may terminate this Agreement at any time upon written notice to the other party. Termination shall not relieve either party from any obligations incurred prior to the date of termination.
Conclusion
A broker-carrier agreement is a crucial document that establishes a successful partnership between a freight broker and a carrier. By following this sample agreement, you can ensure that both parties are on the same page and that the agreement is fair and mutually-beneficial. With a strong agreement in place, you can build a long-lasting and profitable partnership with your carrier.