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New Contract Designed to Improve Broker-Shipper Arrangements

April 18, 2014
The new document helps shippers avoid “over-reaching” clauses.

The joint TIA and National Industrial Transportation League (NITL) model Broker-Shipper contract has been updated to reflect regulatory and legislative changes that were part of MAP-21, the Transportation Reauthorization Bill.

“This agreement represents a common sense approach to contracting between shippers and licensed property brokers,” said Chip Smith, chief operating officer for Bay and Bay Transportation and subcommittee chairman on this project. “It covers the essential issues, treats each party fairly, and avoids the over-reaching clauses often found in these agreements. This contract is actively being used in the market and I often see shipper contracts with excerpts from it. The industry has long needed the practical approach that this agreement offers.”

Gary Palmer, of True Value Company, added that “NITL looks forward to continuing to work with TIA to keep the broker-shipper model contract current and effective.   We recommend that you make use of this template to help document the business relationships and related transactional activity with your broker and shipper partners.” 

In response, to several TIA member inquiries, the Contracts Subcommittee began work on the model Broker-Forwarder agreement to assist members. John Wish, Director of Highway Services for Independent Dispatch, Inc. who sits on the Subcommittee said, “As a freight forwarder, I had approached TIA about the importance of getting a co-party agreement created so my company along with other members could better work with other TIA members. I joined the Subcommittee to work on the model agreement and through the Subcommittee’s hard work; we now have an invaluable resource for the entire membership.”

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