Carrier Shipper Agreement Template for the United States

A Carrier Shipper Agreement is a legally binding contract that establishes the terms and conditions for transportation services between a freight carrier and a shipping company. This essential document governs the relationship between parties involved in the movement of goods, ensuring clear expectations and legal protections under United States federal transportation law.

When do you need this document?

You need a Carrier Shipper Agreement whenever you're establishing an ongoing transportation relationship between a carrier and shipper. This includes situations where a manufacturing company regularly ships products via a trucking company, when an e-commerce business contracts with a logistics provider for delivery services, or when a freight broker arranges transportation between multiple parties. The agreement is particularly crucial for interstate shipments, recurring transportation needs, or when dealing with high-value cargo that requires specific liability and insurance protections.

Key legal considerations

Several critical elements must be addressed in your Carrier Shipper Agreement to ensure legal compliance and protection. The liability clause should clearly define each party's responsibility for cargo loss or damage, typically governed by the Carmack Amendment which establishes uniform carrier liability rules. Insurance requirements must meet federal minimums, with carriers generally required to maintain at least $750,000 in liability coverage for general freight. Payment terms should specify rates, invoicing procedures, and collection methods, while service specifications must detail pickup and delivery requirements, transit times, and performance standards. The agreement should also address force majeure events, dispute resolution procedures, and termination conditions.

Legal requirements in United States

Under United States law, Carrier Shipper Agreements must comply with comprehensive federal regulations governing interstate commerce. The Interstate Commerce Act provides the foundational framework, while Federal Motor Carrier Safety Regulations (FMCSR) establish safety and operational standards that carriers must follow. Carriers must possess valid operating authority from the Federal Motor Carrier Safety Administration and maintain required insurance coverage. The agreement must address Hours of Service regulations that limit driver operating time, and carriers must comply with vehicle inspection and maintenance requirements. Additionally, the Motor Carrier Act of 1980 deregulation framework allows for negotiated rates and terms, but both parties must ensure compliance with anti-discrimination provisions and proper documentation requirements for interstate shipments.