Broker Carrier Agreement

The broker carrier agreement is most important when a broker posts a load and offers a given rate. Upon acceptance, that agreement is executed. Appropriate freight data is generated, such as liability, insurance, settlement processes and the agreement date.

Load Tender and Confirmation

The load tender contains all the details pertaining to the shipment and is primarily used by the carrier. With that being said, the load tender and confirmation can go through an intermediary, like a freight broker. 

Rate Confirmation

The freight rate confirmation is an agreement between the shipper, third-party provider, if present, and carrier that details the shipment rates. All brokers must provide rate confirmations to carriers before pick-up. That critical function helps to avoid surprises in billing. 

Accessorials

There will be times when the rate doesn’t entirely cover everything. That’s where accessorials come into play. These are the additional payments that a shipper agrees to, understanding that the carrier will exercise the best judgment to make changes and assess such accessorial charges. For example, extra equipment, handling or added peak surcharges may be included. 

Bill of Lading

The bill of lading is the receipt for freight delivery by a carrier to the consignee (driver). It contains all the necessary information and rate data to proceed with transportation. 

Load Board Contracts

Load board contracts are a little different. These follow a process similar to a broker carrier agreement. However, they may involve added stipulations or requirements for using the board. 

Special Consideration for Of-Choice Contracts

And lastly, another cornerstone of contracts involves the of-choice designation, such as shipper-of-choice, carrier-of-choice, and broker-of-choice statuses. These special designations may come with added stipulations and requirements, such as tendering a set volume of loads or offering skip-ahead benefits to partnering drivers upon arrival at the yard.