Carrier Broker Agreement Form – Fill Out and Use This PDF

Carrier Broker Agreement Form PDF Details

A broker-carrier agreement is a legal contract that defines the rights, duties, and financial obligations of both the freight carrier and the transportation broker. Understanding the key provisions of this contract helps both parties protect their legal rights and build a productive business relationship.

• Carrier duties and authority. The carrier must maintain valid operating authority with the Federal Motor Carrier Safety Administration (FMCSA) and the Department of Transportation (DOT). The carrier is responsible for providing qualified equipment, complying with federal and state transportation laws, and delivering freight safely and on time according to the contract terms.
• Broker duties. The broker must hold a valid FMCSA freight broker license and arrange transportation only through authorized carriers. Broker obligations include tendering loads, negotiating competitive freight rates, and paying the carrier within the timeframe set out in the agreement.
• Payment terms. The contract specifies rate structures, invoicing procedures, and payment timelines. Most agreements require the broker to pay within 30 to 45 days of receiving proper delivery documentation from the carrier.
• Insurance requirements. Both parties must carry insurance coverage as required by federal law. The carrier typically maintains cargo insurance, auto liability, and general liability policies. The agreement sets out minimum coverage amounts and names additional insured parties where applicable.
• Non-solicitation clause. Many broker-carrier contracts include a restriction preventing the carrier from directly contacting the broker's shipper customers during and after the term of the contract.
• Termination provisions. The agreement states how either party may end the contract, including required written notice periods and any conditions that allow for immediate termination.

Reviewing each section of this contract carefully before signing helps carriers and brokers avoid disputes and maintain a clear understanding of their legal obligations throughout the business relationship.