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, . (A passcode required, which is available free via a registration form on the Web site.)