ATA Criticizes Model Broker/Shipper Contract

The American Trucking Assns. (ATA) is unhappy about a model broker/shipper contract developed by the National Industrial Transportation League and the Transportation Intermediaries Assn.

On its web site Monday, the ATA said the model agreement could have an unfavorable impact on motor carriers.
In its posting, the ATA said it “believes that the model has the effect of imposing terms and conditions upon motor carriers that should be left open to negotiation. Any broker who signs the NIT League/TIA model contract agrees that it will require motor carriers in subsequent broker/carrier agreements to agree to terms such as unilateral motor carrier indemnification of both brokers and shippers for all claims or losses and waiver by the motor carrier of any right it may have to seek payment of freight charges from a shipper.”
ATA said it is notifying members that motor carriers are under no legal obligation to accept the terms and conditions contemplated by the model broker/shipper agreement and that motor carriers have the legal right to independently negotiate all of the terms in their agreements with brokers.
ATA said it has offered to assist NIT League and TIA in restructuring the model agreement and emphasized that model agreements must be purely voluntary and should not disrupt the ordinary bargaining process.