TIA Unveils Broker-Carrier Model Contract
he Transportation Intermediaries Association said Monday it has unveiled a model broker-carrier contract to promote best practices between brokers and carriers.
After previously helping to create a shipper-broker contract with the shippers group National Industrial Transportation League, TIA formed a committee of asset- and non-asset-based TIA members to develop the new broker-carrier contract.
TIA represents brokers and third-party logistics companies, or 3PLs.
“Carriers and brokers can both safely sign the [model contract] without fear of hidden provisions. We believe, therefore, that the [model contract] will make both parties more efficient,” he said in a statement.
The model broker-carrier contract provides these benefits for carriers and brokers:
• Broker Must Pay: Provides for carrier to receive payment from broker, regardless if broker collects payment from its customer;
• Recourse to the Shipper: Provides the carrier with recourse to the shipper for payment should the broker not pay the carrier;
• Recognition: Provides carriers with a recognized document for working with brokers;
• Ease of Use: The contract is easily accessible on the TIA website in both an interactive PDF format and a text format;
• Provides for Payment to Performing Carriers: Provides for a prohibition against unauthorized re-brokering of the load. The model also provides for payment directly to the performing carrier should the broker find out that the load has been re-brokered without permission and before payment has been made; and
• Dispute Resolution: Provides for arbitrating disputes with the choice of arbitration forum open to the parties to negotiate.
The model contract is available on TIA’s Website, www.tianet.org. (A passcode required, which is available free via a registration form on the Web site.)
