Broker Carrier Agreement for Saudi Arabia

Broker Carrier Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law that establishes the business relationship between a freight broker and a transportation carrier. The document outlines the terms and conditions for freight transportation services, including operational requirements, compliance with Saudi transportation regulations, payment terms that adhere to Sharia principles, insurance requirements, and liability allocations. It incorporates specific provisions required under Saudi commercial law and transportation authority regulations, while defining the roles, responsibilities, and obligations of both the broker and carrier in the freight transportation process.

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What is a Broker Carrier Agreement?

The Broker Carrier Agreement serves as the foundational document governing the relationship between freight brokers and transportation carriers operating within Saudi Arabia. This agreement is essential for businesses engaged in freight transportation services, establishing clear operational parameters while ensuring compliance with Saudi Arabian transportation regulations and Sharia law principles. The document typically comes into play when a broker needs to establish a formal relationship with one or more carriers to facilitate freight movement for their clients. It includes crucial elements such as service requirements, payment structures, liability provisions, insurance requirements, and operational procedures. The agreement must align with Saudi Arabia's Commercial Courts Law, Transport General Authority regulations, and other relevant legislation while providing a practical framework for day-to-day operations.

What sections should be included in a Broker Carrier Agreement?

1. Parties: Identification of the broker and carrier entities, including their official registration details and addresses

2. Background: Context of the agreement and brief description of the parties' business activities

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of transportation services to be provided by the carrier

5. Broker's Responsibilities: Obligations of the broker including load tendering, payment terms, and communication requirements

6. Carrier's Responsibilities: Carrier's obligations including equipment provisions, driver requirements, and service standards

7. Compliance Requirements: Compliance with Saudi transportation laws, safety regulations, and licensing requirements

8. Payment Terms: Payment structure, rates, invoicing procedures, and payment timeframes (ensuring Sharia compliance)

9. Insurance and Liability: Required insurance coverage and allocation of liability between parties

10. Term and Termination: Duration of agreement and conditions for termination

11. Confidentiality: Protection of confidential information and trade secrets

12. Dispute Resolution: Process for resolving disputes under Saudi law, including jurisdiction and venue

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. General Provisions: Standard legal provisions including notices, amendments, and assignment rights

What sections are optional to include in a Broker Carrier Agreement?

1. Technology Integration: Requirements for using specific software or systems for load management and tracking (include if technology integration is required)

2. Performance Metrics: Specific KPIs and performance standards (include for larger operations or when specific service levels are crucial)

3. Sustainability Requirements: Environmental compliance and green transportation initiatives (include if relevant to business objectives)

4. Cross-Border Operations: Additional requirements for international transportation (include if cross-border services are involved)

5. Subcontracting: Terms governing the use of subcontractors (include if subcontracting will be permitted)

6. Training Requirements: Specific training obligations for drivers and staff (include for specialized cargo or services)

7. Equipment Standards: Detailed equipment specifications and maintenance requirements (include for specialized transportation needs)

What schedules should be included in a Broker Carrier Agreement?

1. Schedule A - Rate Schedule: Detailed pricing structure, rates for different services and locations

2. Schedule B - Service Areas: Geographic coverage and specific service territories

3. Schedule C - Insurance Requirements: Detailed insurance requirements and minimum coverage levels

4. Schedule D - Operating Procedures: Detailed operational procedures and protocols

5. Schedule E - Equipment Specifications: Detailed list of required equipment and maintenance standards

6. Schedule F - Performance Standards: Specific KPIs and measurement methods

7. Appendix 1 - Required Documentation: List of required permits, licenses, and certificates

8. Appendix 2 - Contact Information: Key personnel and emergency contact details

9. Appendix 3 - Incident Reporting Forms: Standard forms for reporting accidents or incidents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use

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