These are contracts that every broker and carrier have to fill out. We have them in PDF and as MS Word so you can edit them.
Broker Carrier Agreement – The first step between carriers and brokers working together is the carrier / broker agreement. This is the agreement that address a few concerns. Liability, Independent Contractor, Payment to Carrier and non solicitation.
Liability: THe broker does not assume liability for the cargo. This is why the carriers carry insurance. Basically the Freight Broker is a travel agent for freight and this carrier broker contract spells out specifically that the carrier is responsible for having cargo and liability coverage. Most brokers and their customers require 1,000,000 liability and 1,000,000 cargo insurance.
Independent Contractor: The carrier is an independent contractor and will pay taxes on the money that is paid by the broker. Any payments over 600.00 with out this agreement would force the broker to hold taxes out of payments. Carriers should fill out a W-9 and keep a copy electronically to send easily. Payment: THis section has language that states the Broker will pay the carrier for the transportation of services.
Non Solicitation: This section details that the carrier will not back solicit and try and ship with that customer directly. Since customers are how a broker earns a living no broker wants extra competition from the carriers that are hauling freight for them.
Shipper Broker or Shipper Carrier Agreement – This is an agreement between a shipper and transportation provider. The transportation provider can be either a freight broker or truckload carrier. It states specifically who is responsible for what and makes sure everyone is clear about payment terms and payment procedures. This is a good document to have in place in case there are any disputes.
Contracts make sure everyone is one the same page and when an issue happens and if it gets ugly you are going to be glad you had these in place. Also make sure to save your email and take notes and write down times when information is being exchanged. It can be a pain sometimes but usually the one with the best notes wins the argument.