Broker-Carrier Agreement

A broker-carrier agreement is a master contract between a freight broker and a motor carrier that establishes the general terms and conditions governing their business relationship. This agreement serves as the legal framework under which individual shipments are tendered and accepted, with each load's specific details captured in a separate rate confirmation that operates under the umbrella of the master agreement.

Key provisions of a broker-carrier agreement include the carrier's obligations for equipment condition and driver qualifications, insurance requirements and minimum coverage levels, liability and indemnification terms, payment terms and schedules, cargo claims procedures and timelines, non-solicitation provisions preventing the carrier from directly soliciting the broker's customers, and confidentiality obligations regarding rate and customer information.

Cold Chain Provisions

For refrigerated freight operations, the broker-carrier agreement should include specific cold chain provisions such as the carrier's obligation to pre-cool trailers to the shipper's specified temperature before loading, requirements for continuous temperature monitoring and recording during transit, the carrier's responsibility for maintaining the reefer unit in proper working condition, procedures for reporting and managing temperature excursions, and compliance with FSMA Sanitary Transportation Rule requirements.

The broker-carrier agreement is a critical document that is referenced whenever disputes arise over damaged freight, unpaid invoices, or service failures. Both parties should review the agreement carefully and negotiate any terms that do not accurately reflect their intended business practices. ArrowLane's carrier agreements are designed to be fair and balanced while providing clear accountability for cold chain performance.