The Broker Contract Carrier Agreement serves as the foundation for business relationships in the U.S. transportation industry. This document is essential when a freight broker needs to establish a formal relationship with a motor carrier for the transportation of goods. The agreement ensures compliance with federal regulations, including FMCSA requirements, insurance obligations, and safety standards. It typically includes detailed provisions about service expectations, payment terms, liability allocation, and dispute resolution procedures. The agreement is particularly important for risk management and establishing clear operational guidelines between parties.
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1. Parties: Identification of the Broker and Carrier, including legal names, addresses, and MC numbers
2. Background: Context of the agreement, stating the broker's desire to engage carrier for transportation services
3. Definitions: Key terms used throughout the agreement including 'Services', 'Shipment', 'Rate Confirmation'
4. Scope of Services: Detailed description of transportation services to be provided
5. Operating Authority: Carrier's obligations regarding licenses, permits, and authority
6. Insurance Requirements: Required insurance coverage and minimum limits
7. Payment Terms: Rate structure, payment timeline, and invoicing requirements
8. Compliance with Laws: Obligation to comply with federal and state regulations
9. Term and Termination: Duration of agreement and termination conditions
1. Electronic Documentation: Requirements for electronic logging and documentation when electronic systems are primary method of documentation
2. Hazardous Materials: Special requirements for hazmat transportation when hazardous materials transportation is contemplated
3. Temperature Controlled Cargo: Requirements for refrigerated transportation when handling temperature-sensitive cargo
4. Cross-Border Operations: Requirements for international shipments when international transportation is involved
1. Schedule A - Rate Schedule: Standard rates for various lanes and services
2. Schedule B - Insurance Certificates: Copies of required insurance certificates
3. Schedule C - Operating Authority Documentation: Copies of carrier's operating permits and authority
4. Schedule D - Safety Protocol: Safety requirements and procedures
5. Schedule E - Claims Procedures: Process for handling cargo claims and disputes
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