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Broker-Carrier Contract

The contract every freight broker needs in place before a motor carrier picks up the first load. Download the blank template below, merge in your company info for a personalized version, or skip the paperwork entirely with our carrier-onboarding software.

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The basics

What is a broker-carrier contract?

A broker-carrier contract (also called a broker-carrier agreement) is the master agreement a freight broker signs with a motor carrier before tendering them freight. The contract isn't load-specific — it's the umbrella agreement under which every individual load tendered gets handled. Each load tendered later under the agreement is documented separately on a rate confirmation, which incorporates the broker-carrier contract by reference.

The contract exists because the broker is the entity the shipper holds responsible. If a load is stolen, damaged, or delivered late, the shipper looks to the broker first, and the broker looks to the carrier. Without a signed broker-carrier contract on file, the broker is exposed: no agreed payment terms, no agreed insurance minimums, no agreed claims process, no agreed venue for disputes, and — increasingly important — no contractual prohibition on the carrier re-brokering the load to somebody else.

The template we provide below is a generic Broker-Carrier Contract that covers the eleven clauses brokers typically include. It's a starting point — please have your own counsel review and adapt it for your operation before using it.

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What's in the contract

The eleven clauses every broker-carrier contract should include

The template above includes all eleven of the following clauses. The general rule: every clause exists because of a real failure mode in the broker-carrier relationship. Skipping one usually means accepting that failure mode if it happens.

1 Services

Defines what the broker is arranging (transportation) and how loads are dispatched (rate confirmations that incorporate the contract).

2 Independent contractor

Establishes that the carrier is not the broker's employee. The carrier — not the broker — is responsible for driver conduct, equipment, and regulatory compliance.

3 Authority and insurance

Carrier represents it holds active FMCSA authority and maintains specific insurance minimums (auto liability, motor truck cargo, general liability) with the broker named as Certificate Holder.

4 Payment terms

Net 30 days from receipt of complete invoice + supporting documents is the typical baseline. Disputed-charge window (30 days written notice) caps the dispute period.

5 Cargo claims

Carrier is liable for cargo loss / damage / delay under the Carmack Amendment (49 U.S.C. § 14706). The claims-filing window (9 months) and acknowledgement timelines are codified.

6 Indemnification

Carrier defends and holds the broker harmless for claims arising from the carrier's performance — except for gross negligence or willful misconduct of the broker.

7 Non-brokering / no re-brokering

Carrier cannot re-broker, co-broker, or otherwise hand off the load to a third party without the broker's written consent. The clause that addresses double-brokering directly.

8 Confidentiality & non-solicitation

Prohibits the carrier from soliciting transportation services directly from the broker's shippers for some period (typically 12 months) after the last load tendered.

9 Termination

Either party can terminate, with or without cause, on 30 days' notice. Outstanding obligations (payments due, claims open) survive termination.

10 Governing law & venue

Names the state whose laws apply and the state and federal courts where disputes are resolved — usually the broker's home state.

11 Entire agreement

The contract plus the rate confirmations issued under it are the entire deal. Verbal commitments and side emails don't override the written contract unless both parties sign an amendment.

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FAQ

Frequently asked questions

Is a broker-carrier contract the same as a broker-carrier agreement?

Yes — the two terms are used interchangeably. Some brokerages call it the "carrier agreement" or "master carrier agreement"; others say "broker-carrier contract" or "freight broker contract." All refer to the same document: the master agreement between the freight broker and the motor carrier. Our template uses "Broker-Carrier Agreement" as the title.

Do I need an attorney to use this template?

Yes — please have your own counsel review and adapt the template before using it for live business. We've drafted the template to cover the eleven clauses that typically appear in broker-carrier contracts, but jurisdictions, lane types (intermodal, hazmat, refrigerated), and brokerage operations vary. A 30-minute attorney review will catch the items specific to your situation. The template is a strong starting point, not a substitute for legal advice.

Why do you require an email for the customizer?

Two reasons. First, we send a copy of the generated PDF to the email address so you have it on file in your inbox in addition to the browser download. Second, we save your email so we can follow up with tips on carrier compliance and — if you want — try our carrier-onboarding software free for 30 days. We don't share your email, and you can unsubscribe at any time. If you just want the contract without giving us your email, download the blank version directly: Broker-Carrier Contract (blank PDF).

What happens after the carrier signs my contract?

The signed contract becomes the master agreement under which all future loads are dispatched to that carrier. Each individual load gets its own rate confirmation, which incorporates the master contract by reference. You'll want to keep the signed contract on file for the life of the relationship (and several years after) — most brokerages store it in their TMS or in a digital onboarding platform like CarrierPacket.Link, where it lives alongside the carrier's COI, W-9, authority cert, and other documents.

Can I use this contract for both US and Canadian carriers?

The template references US FMCSA regulations and the Carmack Amendment, both of which are US-specific. For cross-border or Canadian-only operations, the cargo-liability framework is different (the Canadian framework relies on different statutes), and you'll need additional clauses on customs broker responsibilities. Have your counsel adapt the template for cross-border use — or use a separate Canadian template.