Get Broker Carrier Agreement Template 2023

Understanding Their Role in the Shipping Industry Freight brokers help cargo owners ship their goods securely and efficiently. Brokers connect shippers with carriers, and then help navigate and coordinate the many moving parts of the supply chain to ensure that cargo gets safely to its destination.

In its most basic form, the broker-carrier agreement is a contract between two or more parties that details legally enforceable mutual obligations. Going a little deeper into Law 101, that enforceable contract must contain mutual assent, expressed by a valid offer and acceptance.

What is the difference between the shipper and the carrier? The shipper is the company that owns the goods being shipped. The carrier is the company that transports the goods on behalf of the shipper.

Freight rates and fees are defined in the broker-carrier agreement, including shipping costs, fuel rates, customs/taxes, handling fees and any other expenses. The document should specifically address and when and how you'll receive payment for transporting the load.

A freight broker falls into the category of transportation intermediary, which is a company that is neither a shipper nor an asset-owning carrier, but plays an integral role in the movement of cargo.

The documents that you will come across the majority of the time are the bill of lading, insurance form, broker agreement, and the load confirmation. These documents are all crucial to the process, and each one is important in its own way.

Freight brokers do not own their own equipment. An asset carrier owns and operates the tractors and trailers in their fleet and employs the drivers that move the freight. The shipper works directly with the carrier when they need freight moved.

The brokerage carrier typically works with a large network of available, independently owned and operated or fleet-based carrier companies. This allows them to route shipments to specific destinations based on the individual needs of the shipper.