The Carrier Agreement is a crucial commercial document used when engaging transportation and logistics service providers in Saudi Arabia. It serves as the primary contractual framework for establishing a formal business relationship between carriers and their clients, ensuring compliance with Saudi Arabian regulations including the Transport General Authority requirements, Commercial Court Law, and relevant safety and insurance regulations. This document is essential when companies need to secure reliable transportation services, covering aspects from operational procedures and service standards to risk allocation and compliance requirements. The agreement is structured to protect both parties' interests while maintaining alignment with Saudi Arabian legal requirements and Sharia principles, making it suitable for both domestic and international companies operating within the Kingdom.
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1. Parties: Identification of the contracting parties including full legal names, commercial registration numbers, and authorized representatives
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of transportation services to be provided
5. Service Standards: Performance requirements, KPIs, and quality standards
6. Operating Procedures: Day-to-day operational requirements including booking, documentation, and delivery procedures
7. Equipment and Vehicles: Specifications for vehicles and equipment to be used in service provision
8. Rates and Payment Terms: Pricing structure, payment terms, invoicing procedures, and currency specifications
9. Insurance and Liability: Insurance requirements and allocation of liability between parties
10. Compliance: Obligations to comply with relevant laws, regulations, and safety standards
11. Term and Termination: Duration of agreement and circumstances for termination
12. Confidentiality: Protection of confidential information and trade secrets
13. Force Majeure: Provisions for unforeseen circumstances preventing performance
14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Cross-Border Operations: Additional provisions for international transportation services, if applicable
2. Dangerous Goods: Special provisions for handling and transporting dangerous goods, if relevant
3. Technology Integration: Requirements for using specific software or systems for tracking and management
4. Environmental Compliance: Specific environmental requirements and green initiatives
5. Subcontracting: Terms governing the use of subcontractors, if permitted
6. Training Requirements: Specific training requirements for drivers and personnel
7. Security Requirements: Additional security measures for high-value or sensitive cargo
8. Fuel Surcharge Mechanism: Formula and procedures for fuel cost adjustments
1. Schedule 1 - Service Locations: List of approved pickup and delivery locations
2. Schedule 2 - Rate Card: Detailed pricing for different services and routes
3. Schedule 3 - Service Level Requirements: Detailed KPIs and performance metrics
4. Schedule 4 - Vehicle Specifications: Technical requirements for vehicles and equipment
5. Schedule 5 - Operating Procedures Manual: Detailed operational procedures and requirements
6. Schedule 6 - Insurance Requirements: Specific insurance types and coverage amounts required
7. Schedule 7 - Health and Safety Requirements: Detailed safety procedures and requirements
8. Appendix A - Required Documentation: Templates and examples of required shipping documents
9. Appendix B - Contact Details: Key contacts and escalation matrix for both parties
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