Everything You Should Know About Broker-Carrier Agreements

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:

1. Payment Terms

   The agreement typically details how and when payments will be made to the carrier, including specifics on freight charges and penalties for late payments.

2. Liability and Insurance

   It outlines the carrier’s responsibility for loss or damage of goods, including the type and amount of insurance required.

3. Freight Handling

   The contract specifies how freight should be loaded, transported, and delivered, ensuring the carrier follows the agreed protocols.

4. Dispute Resolution

   In case of disagreements, the agreement should include terms for dispute resolution, either through mediation or arbitration.

5. Compliance with Regulations

   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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