Carrier Agreement Template for the United States

A Carrier Agreement is a legally binding contract that governs the relationship between freight carriers and shippers or brokers in the United States transportation industry. This document establishes the terms under which carriers will provide transportation services, ensuring compliance with federal regulations while protecting the interests of all parties involved in the freight movement process.

When do you need this document?

You need a Carrier Agreement whenever you're establishing a business relationship for freight transportation services. This includes situations where freight brokers are contracting with motor carriers for ongoing transportation services, when shippers are directly engaging carriers for regular shipping needs, or when establishing partnerships with subcontractors for freight hauling. The agreement is also essential when expanding operations into new territories or adding new carriers to your approved provider network. Any business involved in interstate commerce requiring transportation services should have properly executed Carrier Agreements in place before moving freight.

Key legal considerations

Several critical legal elements must be addressed in your Carrier Agreement to ensure enforceability and regulatory compliance. Insurance requirements are paramount, with carriers typically required to maintain minimum coverage including general liability, auto liability, and cargo insurance as specified by federal regulations. Liability allocation clauses must clearly define responsibility for cargo loss, damage, or delay, often referencing the Carmack Amendment which governs interstate carrier liability. Indemnification provisions should specify which party bears responsibility for various types of claims or damages. Payment terms must include clear invoicing procedures, payment schedules, and any applicable accessorial charges. The agreement should also address compliance with Hours of Service regulations, safety requirements, and proper documentation procedures for freight movement.

Legal requirements in United States

Under United States federal law, Carrier Agreements must comply with comprehensive transportation regulations overseen by multiple agencies. The Federal Motor Carrier Safety Administration (FMCSA) requires carriers to maintain valid operating authority through USDOT and MC numbers, with proper licensing for interstate operations. Carriers must meet minimum insurance requirements as outlined in CFR Title 49, typically including at least $750,000 in auto liability coverage and appropriate cargo insurance. The Interstate Commerce Act provides the framework for carrier operations across state lines, while TSA requirements mandate specific security measures for transportation operations. State-specific licensing obligations may also apply depending on the routes and commodities involved. The agreement must reference these regulatory requirements and ensure that all parties maintain compliance throughout the contract term. Additionally, proper documentation and record-keeping requirements under federal law must be incorporated into the operational procedures outlined in the agreement.