1. Purpose
The Broker agrees to arrange for the transportation of Shipper’s freight through qualified motor carriers, and the Shipper agrees to tender freight under the terms of this Agreement.
2. Services Provided by Broker
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Broker will arrange transportation for freight tendered by Shipper using authorized and insured motor carriers.
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Broker does not act as a carrier and will not take possession of freight; Broker’s role is strictly to arrange transportation services.
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Broker will provide load confirmations with rates, terms, and carrier details for each shipment.
3. Payment Terms
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Shipper agrees to pay Broker the rates and charges as set forth in the load confirmations.
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Payment is due within 30 days of invoice date unless otherwise agreed in writing.
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Late payments may incur finance charges at 1.5% per month (or the maximum allowed by law).
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All charges are deemed earned once the carrier has picked up the shipment, regardless of whether delivery is completed or if freight is lost/damaged.
4. Liability & Limitations
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Carrier, not Broker, assumes responsibility for cargo loss, damage, or delay while in transit. Broker will assist Shipper in processing claims with the carrier.
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Broker’s liability is limited to negligence directly caused by Broker in arranging services, and in no case shall Broker’s liability exceed the amount of its brokerage fee on the shipment.
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Shipper must file claims for cargo loss or damage within the statutory time frames under 49 C.F.R. Part 370.
5. Shipper Responsibilities
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Shipper shall ensure freight is properly packaged, labeled, and described in accordance with all applicable laws.
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Shipper must provide accurate information (weight, dimensions, hazardous materials declaration, etc.). Any inaccuracies may result in additional charges.
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Shipper shall indemnify Broker against any claims or penalties arising from inaccurate or incomplete shipment information.
6. Insurance
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Broker agrees to use carriers that maintain minimum insurance coverage of $1,000,000 Auto Liability and $100,000 Cargo Liability, or as otherwise required by law.
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Broker itself does not provide cargo insurance but may assist Shipper in securing additional coverage if requested.
7. Dispute Resolution
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The Parties agree to attempt to resolve disputes in good faith.
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If disputes cannot be resolved, they shall be submitted to binding arbitration under the rules of the American Arbitration Association (AAA).
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This Agreement is governed by the laws of the State of Texas.
8. Term & Termination
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This Agreement shall remain in effect for one (1) year, automatically renewing unless terminated by either party with 30 days’ written notice.
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Either party may terminate immediately for cause, including failure to pay or breach of terms.
9. Entire Agreement
This Agreement represents the entire understanding between the Parties and supersedes all prior agreements. Any modifications must be in writing and signed by both Parties.