The American Trucking Associations has released two model agreements that can be used to help structure contractual relationships between motor carriers and brokers. The model contracts – a short and a long version – were developed
in consultation with ATA members – many operating separate brokerage businesses.
ATA says they also reflect comments made by the Transportation Intermediaries Association (TIA) on behalf of its members. Additionally, ATA submitted the model contracts to the U.S. Department of Justice, which has indicated that distribution and use of the agreements does not raise antitrust concerns.
ATA stresses that the provisions of the agreements are designed to provide a neutral starting point for carrier/broker negotiations. Their use is voluntary. All provisions related to rates, charges and other competitively sensitive matters are left blank and must be completed through individual negotiations. Because lengthy contracts may not be appropriate for spot market environments, a two-page short form model incorporates much of the longer form by reference and provides a user-friendly contract for carriers and brokers engaged in one-time or limited business transactions.
Earlier this year TIA released its own model motor carrier/broker agreement which ATA says favors brokers and shippers in many instances. For example, the TIA model asks motor carriers to agree that the broker “is the sole party responsible for payment of carrier’s charges” and prohibits motor carriers from seeking payment of freight charges from a shipper that has paid a broker.
The ATA model leaves the “shipper recourse” issue open for negotiation. “Motor carriers should carefully distinguish between the TIA and ATA models when negotiating and drafting individual carrier/broker agreements,” ATA says.
The model agreements and instructions are available in the Priority Policy Issues section of the ATA web site, www.truckline.com.