Fill out carrier agreement?

Most brokers think that they need to write a book when it comes to contracts with carriers. Most of the contracts are very one sided and to the benefit of the broker. I would caution you to read each contract very carefully and if there is anything in the contract that you don't agree, then make appropriate changes or find another broker. I have rarely signed a contract with any broker that I didn't need to make changes to protect my interests. One of the best brokers that I have done business has basically two sentences in their contract. It stated that I agreed to carry adequate amounts of insurance and that the broker agreed to pay me. When I hauled a load I mailed or hand delivered the bills and he sat down and wrote a check. If I mailed the bills, he would mail me a check the same day he received the bills. No discounts on the money for early payment. It was one of the best broker relationships that I had.

Remember, whatever you sign you better be prepared to live with it. When someone wants me to sign a contract, I read every word. I bought some property a number of years ago. The contract was very lengthly. I read every word. The attorney got a bit irritated about my wanting to carefully read it. I told her that if it was important enough to put down in writing that it was important enough for me to read it. If she wanted to get rid of all the verbage, then I could go ahead and sign it.

One of the most critical aspects of any broker contract is the back solicitation clause. They want to make sure that you cannot go back and solicit the customer without them receiving a hefty commission for a year or two.

 

Gman is spot on...read it all...the longer the contract, the more you can get screwed.

 

X2........ also check the days to pay, some try to sneak a 45 or 60 days from receipt of bills in their hopeing you will miss it.

 

A contract can work both ways. One thing most of them have is that you cannot back solicit any shippers where they first told you about them. Another is the terms of payment. If the broker fails to pay as agreed in the contract, then they have effectively broken the contract which should free the carrier to solicit the shipper. The broker has broken his own agreement and that invalidates any contract. I usually add a clause in any of these contracts which invalidates the terms should the broker fail to pay as agreed. I also add something about collection costs, attorney's fees and court costs as well as interest on any late payments. I have had a few who balked about signing an amended agreement, but I explain to them that I don't sign one sided agreements and the terms that I added is to protect my company and if they can't live with the changes, then we don't do business. I think that it is foolish to allow a broker or shipper to have everything their way where they have all the protections and the carrier has nothing. I have known some who will sign a contract with a broker without reading the first word. That is very bad business.

 

Been there done that GMan

 

Hate those 20-page contract and on the flip side I get nervous when they have nothing.

 

There is really no reason for a broker contract to be so long. When you receive ANY contract, you better make sure to read and fully understand every word. Some brokers also like to put in extra conditions in the rate confirmations.