Broker Carrier Transportation Agreement for the United States

Broker Carrier Transportation Agreement Template for United States

A Broker Carrier Transportation Agreement is a legally binding contract governed by U.S. federal and state regulations, particularly FMCSA requirements. It establishes the business relationship between a licensed freight broker and a motor carrier, defining the terms for transportation services, compliance requirements, insurance obligations, payment terms, and risk allocation. The agreement must comply with federal transportation laws, including the Carmack Amendment and MAP-21 Act.

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What is a Broker Carrier Transportation Agreement?

The Broker Carrier Transportation Agreement serves as the foundation for freight movement arrangements in the United States. This document is essential when a licensed freight broker needs to establish a formal relationship with motor carriers for transporting goods. The agreement ensures compliance with FMCSA regulations, sets forth insurance requirements, defines payment terms, and allocates risk between parties. It includes crucial provisions for safety compliance, cargo liability, and operational procedures, making it indispensable for managing transportation relationships in accordance with federal and state regulations.

What sections should be included in a Broker Carrier Transportation Agreement?

1. Parties: Identifies the broker and carrier, including legal names, addresses, and operating authorities

2. Background: Establishes the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

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

5. Compliance with Laws: Requirements for regulatory compliance, licenses, and permits

6. Insurance Requirements: Mandatory insurance coverage and minimum limits

7. Payment Terms: Rate structure, payment timing, and invoicing requirements

8. Liability and Indemnification: Allocation of risk and responsibilities between parties

9. Term and Termination: Duration of agreement and termination conditions

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

1. Performance Metrics: KPIs and service level requirements for high-volume or specialized shipping arrangements

2. Technology Requirements: Specifications for tracking systems and electronic communications when specific technology integration is needed

3. Fuel Surcharge Program: Terms for fuel cost adjustments in long-term agreements or volatile fuel markets

4. Hazardous Materials: Special requirements for handling hazardous materials when transporting dangerous goods

What schedules should be included in a Broker Carrier Transportation Agreement?

1. Rate Schedule: Detailed pricing structure and lanes

2. Insurance Certificates: Copies of required insurance documentation

3. Operating Procedures: Detailed operational requirements and protocols

4. Equipment Specifications: Required vehicle types and equipment standards

5. Safety Protocol: Safety requirements and procedures

6. Claims Processing Procedures: Step-by-step process for handling cargo claims

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 | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Broker Agreement

Cost

Free to use
Clauses
Industries

FMCSA Regulations: Federal Motor Carrier Safety Administration regulations including 49 CFR Part 371 (Broker Regulations), Part 376 (Lease and Interchange of Vehicles), and Parts 390-399 (Federal Motor Carrier Safety Regulations)

Interstate Commerce Requirements: Key legislation including MAP-21 (Moving Ahead for Progress in the 21st Century Act), Motor Carrier Act of 1980, and Interstate Commerce Commission Termination Act

Insurance Requirements: 49 CFR ยง 387 covering minimum levels of financial responsibility, including BMC-84 Bond or BMC-85 Trust Fund requirements

Licensing and Registration: FMCSA Operating Authority requirements, DOT registration requirements, and MC Number regulations

Cargo Liability: Carmack Amendment (49 U.S.C. ยง 14706) and Bills of Lading Act governing cargo liability and transportation requirements

Safety and Compliance: CSA (Compliance, Safety, Accountability) program, ELD (Electronic Logging Device) mandate, and Hours of Service regulations

State-Specific Requirements: Individual state transportation laws, state-specific insurance requirements, and licensing requirements that vary by jurisdiction

Employment and Labor Laws: Fair Labor Standards Act, Independent Contractor regulations, and worker classification rules affecting transportation operations

Environmental Regulations: EPA emissions standards and state-specific environmental requirements for transportation operations

Contract Law: Uniform Commercial Code (UCC) and state contract law principles governing commercial transportation agreements

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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