The Transportation Intermediaries Association (TIA), a trade association of third-party logistics providers (3PLs), has developed a Model Broker-Carrier Contract to promote best practices between brokers and carriers. The Model Contract is available on TIA’s website: www.tianet.org.
After previously helping to create and execute the NITL/TIA Shipper-3PL Contract, which became an industry standard contract, TIA formed a committee comprised of an equal number of asset-based and non-asset-based TIA members to develop the TIA Model Broker-Carrier Contract.
“Our sole objective for the TIA Model Broker-Carrier Contract was to create a fair and balanced template contract that would raise the standard and suit the best interests of both brokers and carriers,” says Robert Voltmann, TIA’s president and CEO. “Carriers and brokers can both safely sign the TIA Model Broker-Carrier Contract without fear of hidden provisions.”
“As president of a carrier, having a standardized contract will create efficiencies and save me a great deal of time,” says Rick Staller, president of Bee Trucking Inc. and chairman of the TIA Motor Carrier Conference. “This contract covers two of the big issues for carriers: It obligates brokers to pay even if they don’t collect from the shipper, and it allows for recourse if the broker doesn’t pay within an agreed time frame.”
The contract provides these benefits for both 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 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 un-authorized 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.
* Dispute resolution: Provides for arbitrating disputes with the choice of arbitration forum open to the parties to negotiate.