Co Broker Agreement Trucking Template for the United States

A Co Broker Agreement Trucking is a specialized contract that governs the working relationship between two or more licensed freight brokers in the United States transportation industry. This agreement allows brokers to collaborate on freight shipments, share resources, and expand their operational reach while maintaining compliance with federal regulations. Under this arrangement, brokers can leverage each other's carrier networks, customer relationships, and geographical coverage to provide more comprehensive logistics solutions.

When do you need this document?

You need a Co Broker Agreement when your freight brokerage wants to expand into new markets without establishing physical presence in those areas. This document becomes essential when partnering with regional brokers who have established carrier relationships and local market knowledge. The agreement is also crucial when you need additional capacity during peak shipping seasons or when handling specialized freight that requires specific expertise. Many brokers use these agreements to enter new industry verticals, such as moving from dry van freight to refrigerated transport, by partnering with brokers who have the necessary carrier networks and equipment specialization.

Key legal considerations

The compensation structure represents one of the most critical elements, typically involving commission splits that must be clearly defined to avoid disputes. Both parties must verify each other's active broker authority and maintain the federally required $75,000 surety bond throughout the agreement term. The document should establish clear responsibilities for customer relationships, carrier vetting, and claims handling to prevent conflicts over liability. Record-keeping obligations must align with FMCSA requirements, including maintaining transaction records for three years and ensuring proper documentation of all freight movements. The agreement should also address territorial restrictions, non-compete clauses, and procedures for handling customer complaints or cargo claims.

Legal requirements in United States

Under federal law, all parties to a Co Broker Agreement must hold valid FMCSA broker authority and maintain active registration status. The Moving Ahead for Progress in the 21st Century Act (MAP-21) requires strict compliance with broker licensing and bonding requirements, which both co-brokers must continuously maintain. According to 49 CFR 371, brokers must keep detailed records of all transactions and ensure proper documentation of carrier relationships and freight movements. The agreement must comply with 49 USC 14916 regarding unlawful brokerage activities and establish procedures to prevent violations such as double brokering without proper disclosure. All parties must maintain appropriate insurance coverage and ensure that motor carriers used in the co-brokerage arrangement hold valid operating authority and required insurance levels as mandated by Department of Transportation regulations.