A broker-carrier agreement sets the terms for your whole relationship with a carrier. Each rate confirmation then covers the details of one load. Get the agreement signed before the first load moves.
This is a checklist of topics, not a contract. Have a transportation attorney draft or review yours.
Who the parties are
Use full legal names and MC numbers. State that the broker arranges transportation and doesn’t take possession of the freight, and that the carrier is an independent contractor.
Clauses to cover
- Carrier’s authority: the carrier promises to keep active authority and follow the law.
- Insurance: the types and minimum amounts, proof, and notice of cancellation.
- No re-brokering: the carrier must haul on its own equipment, and what happens if it doesn’t. See double brokering.
- Cargo liability: who is responsible for loss and damage, and how claims are filed and when.
- Rates: each load’s rate is set by its rate confirmation.
- Payment: your terms, required documents and quick-pay options.
- No back-solicitation: whether the carrier can approach your shipper directly, and for how long.
- Indemnity: who covers which losses and claims.
- Confidentiality: rates and customer information.
- Termination, governing law and disputes.
How it works with the rate con
Say which document wins if they conflict. A rate con is often faster and more specific, but it shouldn’t quietly undo the protections in your agreement.
Practical tips
- Don’t book a load for a carrier without a signed agreement on file.
- Keep the signed copy with the carrier’s record, along with its insurance and W-9.
- Have your attorney review the agreement when your business changes.
- Avoid editing clauses for individual carriers without advice, since small changes can have big effects.
In Juno, carrier records keep the carrier’s details and documents together, so everyone on your team checks the same file.
Common questions
Do I need a broker-carrier agreement if I use rate confirmations?
It’s strongly advisable. A rate con covers one load; the agreement sets the wider terms, like insurance, liability and re-brokering.
Can I use a template from the internet?
It can help you see the topics, but have a transportation attorney adapt it. Mistakes usually surface only when there’s a claim.
What is a back-solicitation clause?
It limits a carrier from going directly to the shipper you introduced, usually for a set period.