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.
Generate
loads and dispatch to carriers and drivers. Great for brokers, carriers,
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