A Broker-Carrier Agreement is a legally binding contract between a freight broker and a carrier, outlining the terms and conditions under which freight will be transported. Here’s what you need to know:
The agreement typically details how and when payments will be made to the carrier, including specifics on freight charges and penalties for late payments.
It outlines the carrier’s responsibility for loss or damage of goods, including the type and amount of insurance required.
The contract specifies how freight should be loaded, transported, and delivered, ensuring the carrier follows the agreed protocols.
In case of disagreements, the agreement should include terms for dispute resolution, either through mediation or arbitration.
The carrier must comply with all federal, state, and local transportation regulations, and this clause is often included to safeguard the broker.
A well-crafted broker-carrier agreement protects both parties and ensures clear expectations, reducing the risk of disputes and miscommunications during the freight process.
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