Co Broker Agreement Transportation Template for the United States

A Co Broker Agreement Transportation is a legal contract that allows two or more licensed freight brokers to work together on transportation services while maintaining their independent broker authorities. Under United States federal transportation law, this agreement must comply with FMCSA regulations and Interstate Commerce Act requirements to ensure proper industry oversight and operational standards.

When do you need this document?

You need this agreement when your brokerage wants to expand service coverage without establishing physical offices in new regions. It's essential when you lack carrier relationships in specific geographic areas and need to partner with local brokers who have established networks. The document is also crucial when handling large shipments that require multiple brokers' resources or when you want to offer specialized services that complement another broker's expertise. Additionally, you'll need this agreement when seeking to maintain independent operations while sharing certain operational costs or when responding to requests for proposal that require broader geographic coverage than your current network provides.

Key legal considerations

The agreement must clearly define each broker's responsibilities to avoid liability conflicts under federal transportation regulations. Commission structures should specify exact percentage splits and payment timelines to prevent disputes and ensure compliance with industry standards. Both parties must maintain their individual FMCSA broker authority and bond requirements, as co-brokerage arrangements don't transfer these regulatory obligations. The document should address cargo insurance responsibilities, ensuring adequate coverage exists throughout the transportation process. Indemnification clauses are critical to protect each broker from claims arising from the other's actions or negligence. The agreement must also establish clear procedures for carrier selection and vetting to maintain safety standards required under FMCSA regulations.

Legal requirements in United States

Under federal law, both brokers must maintain valid FMCSA operating authority and meet current bond requirements as established by MAP-21 legislation. Each broker must comply with 49 CFR § 371 regulations governing broker operations, including proper documentation and record-keeping requirements. The agreement must not violate any state-specific contract laws in jurisdictions where the brokers operate. Both parties must maintain separate business entities and cannot represent themselves as a single brokerage operation to shippers or carriers. The document must include provisions ensuring compliance with Transportation Intermediaries Association guidelines and industry best practices. Additionally, the agreement should address data protection requirements for customer and shipment information sharing between the co-brokers.