Freight Broker-Carrier Agreement Template (US)

Updated on August 24, 2026

A freight broker-carrier agreement is useful only if it makes the commercial promise precise enough to run a project, approve money, and resolve a dispute. The Jotform source gives users a downloadable shape, but it leaves the highest-risk points either blank or invisible: who is responsible for approvals, what changes the price, what laws affect the document, and what record each party must keep.

This US master is drafted as a practical working document rather than a decorative PDF. It adds real definitions, optional branches, statutory checkpoints, clause-by-clause guidance, and a clean fillable document that can be downloaded as DOCX or PDF without signup. The carrier-side version is not the same as a broker-shipper agreement: it allocates risk between the arranging broker and the motor carrier that actually accepts freight.

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Broker notice address

Freight Broker-Carrier Agreement

Effective date:
Broker:: , MC , USDOT
Carrier:: , MC , USDOT
Governing state:

1. Appointment and regulatory status

Broker is a property broker arranging transportation by authorized motor carriers, and Carrier is an independently authorized motor carrier. Each party represents that the authority numbers stated above are correct, current, and maintained in good standing for the services performed under this agreement.

Broker represents that it maintains required FMCSA broker authority, financial responsibility, and process-agent filings, including the broker financial responsibility required under 49 CFR 387.307 where applicable. Broker will promptly notify the other party of any suspension, revocation, cancellation, or drawdown notice affecting those filings.

2. Scope of transportation services

The covered shipments, lanes, commodity types, service levels, and operational assumptions are: . Shipment-specific rate confirmations, tenders, bills of lading, delivery receipts, and accessorial approvals supplement this agreement and control the shipment details if they are more specific.

Carrier will provide transportation using properly qualified drivers, equipment, operating authority, safety management, and cargo-handling procedures. Carrier will not re-broker, co-broker, subcontract, or tender freight to another carrier unless Broker gives prior written approval for the specific shipment.

3. Rates, invoices, and payment

Rates may be set in a written rate confirmation, tariff, schedule, or shipment quote accepted by the parties. A clean invoice must include the shipment reference, rate confirmation, bill of lading, proof of delivery, and approved accessorial charges. Payment is due within days after receipt of a clean invoice.

A party disputing an invoice must give written notice within days after receipt, identify the disputed amount and reason, and pay the undisputed amount on time. Late charges, if any, must comply with applicable law and the governing rate confirmation.

4. Cargo risk, insurance, and claims

Carrier is responsible for freight in its possession or control except to the extent a loss is caused by an excepted risk under applicable law or by Shipper instructions. Carrier will maintain at least in auto/public liability coverage and at least in cargo coverage unless a shipment-specific writing requires more.

Visible damage, shortage, seal discrepancies, temperature excursions, or delivery exceptions should be recorded on the delivery receipt before signature. The parties will preserve shipment records, photographs, bills of lading, rate confirmations, and claim correspondence needed to investigate a cargo claim.

5. Records and broker transparency

Broker will maintain transaction records required for brokered transportation, including the consignor, consignee, motor carrier, bill of lading or freight bill, compensation, and charges connected with the shipment, to the extent required by 49 CFR part 371 or successor rules. Broker will provide records to a legally entitled party when required by law.

6. Compliance and safety

Each party will comply with applicable federal, state, and local transport, safety, sanctions, anti-bribery, cargo-security, and tax laws.
Carrier will maintain driver qualification, hours-of-service, equipment, drug and alcohol, and safety-rating obligations for shipments it performs.
Shipper will not tender hazardous materials, regulated waste, food, pharmaceuticals, high-value goods, household goods, or temperature-controlled cargo without written instructions and required documentation.

7. Confidentiality and data

Shipment data, rates, customer names, lane information, security instructions, and operational contacts are confidential and may be used only to perform this agreement or as required by law. Personal data in shipment records may be shared only with parties that need it for pickup, carriage, delivery, payment, compliance, or claims.

8. Indemnity and liability

Each party will defend and indemnify the other against third-party claims arising from its material breach, negligence, willful misconduct, regulatory violation, or inaccurate shipment information. The indemnity does not make Broker the carrier in possession of the freight unless Broker separately accepts that role in writing.

Neither party is liable for consequential, punitive, or speculative damages except to the extent the law does not allow exclusion or the damages arise from fraud, willful misconduct, confidentiality breach, or an indemnified third-party claim.

9. Term and termination

Either party may terminate this agreement without cause on days written notice. Either party may terminate immediately if the other loses required authority, insurance, financial responsibility, or process-agent status, or materially breaches and fails to cure within a reasonable written cure period. Shipments already in transit must be completed under the shipment documents unless safety or law requires otherwise.

10. Notices, governing law, and signatures

Operational notices may be sent to . Legal notices must be sent to the notice addresses stated for the parties. This agreement is governed by the law of , except that federal transportation law controls where it preempts state law. Electronic signatures are permitted to the extent allowed by the E-SIGN Act and applicable state law.

Broker

Date:

Carrier

Date:

Why the broker-carrier agreement needs FMCSA language

The Jotform PDF says the broker and carrier are authorized by FMCSA, but then treats that as background language. In a real US freight relationship it is operational. The broker should warrant broker authority, financial responsibility and process-agent filings; the carrier should warrant motor-carrier authority, safety qualification, insurance and its ability to perform the tendered lanes. If either authority lapses, the other party needs immediate termination rights and a duty to protect freight already in transit.

FMCSA guidance says first-time broker applicants register through the Unified Registration System and, after an MC number is assigned, must complete proof of financial security and process-agent steps. FMCSA insurance guidance also identifies broker and freight-forwarder financial responsibility under 49 CFR 387.307. This template turns those regulatory facts into representations, notification duties and default remedies.

Payment and freight charges need shipment-level records

The source template simply says the carrier bills the broker and the broker pays within thirty days. That is not enough for a working logistics contract. A clean invoice needs the shipment reference, rate confirmation, bill of lading, proof of delivery and approved accessorials. If a charge is disputed, the undisputed amount should still be paid on time while the parties investigate the disputed line.

The agreement also has to protect the carrier against non-payment while keeping the broker from being hit with surprise detention, lumper, redelivery or storage charges. The better mechanism is not a blanket promise; it is a requirement that accessorials be authorized in writing, matched to the shipment record and supported by documents.

Cargo liability, insurance and re-brokering

A broker-carrier agreement should say who is physically responsible for the freight and should not blur broker and carrier roles. The carrier is responsible for freight in its possession or control subject to applicable law and the shipment documents. The broker arranges transportation and pays agreed freight charges; it does not become the motor carrier just because its name appears on paperwork.

The source document misses the re-brokering problem entirely. If a carrier tenders freight to a second carrier without permission, the broker and shipper may lose visibility over safety, insurance and cargo claims. This template bars re-brokering, co-brokering or subcontracting without shipment-specific approval.

Records and transparency are not optional decoration

Broker records are one of the strongest places to beat the source page. FMCSA broker-transparency materials and 49 CFR part 371 center the brokered transaction record: consignor, consignee, carrier, freight bill or bill of lading, compensation and charges. A good contract should not merely say records will be kept; it should define what records support payment, cargo claims and lawful record access.

This template also adds confidentiality, data-use and security language. Shipment records contain customer names, pickup contacts, delivery addresses, rates and sometimes sensitive cargo information. Those details should move only to parties that need them for pickup, carriage, delivery, billing, compliance or claims.

Clause-by-clause guide

Appointment and authority: Defines the broker and motor carrier roles and ties them to current FMCSA authority.
Scope of covered shipments: Uses shipment-specific tenders and rate confirmations for exact lanes, cargo and service levels.
Clean invoice requirements: Requires the documents needed to verify freight charges before payment is due.
Invoice disputes: Preserves timely payment of undisputed charges while giving a short written dispute process.
Insurance and cargo responsibility: States required auto/public liability and cargo coverage without pretending declared value is insurance.
No re-brokering: Stops unauthorized subcontracting that would hide the carrier actually handling freight.
Records and transparency: Requires brokered-transaction records and lawful access where transport law requires it.
Compliance and safety: Covers authority, drivers, equipment, hazardous materials and shipment instructions.
Confidentiality and data: Protects rates, customer information, contacts and cargo-security instructions.
Termination: Allows prompt termination for authority, insurance or financial-responsibility failures.

US freight broker-carrier checklist

Check these items before tendering freight under the agreement.

Confirm broker authority and financial responsibility
FMCSA broker applicants must complete operating-authority, financial-security and process-agent steps; property brokers are tied to a $75,000 surety bond or trust fund requirement.
FMCSA broker registration FAQ
Use the current broker/freight-forwarder financial responsibility rule
FMCSA insurance guidance lists broker and freight forwarder financial responsibility under 49 CFR 387.307 and notes 2026 implementation changes for broker financial security.
FMCSA insurance filing requirements
Keep process-agent filings current
FMCSA BOC-3 guidance says brokers and freight forwarders must designate process agents and keep a copy at the principal place of business.
FMCSA Form BOC-3 guidance
Preserve broker transaction records
FMCSA broker-transparency materials focus on transaction records and lawful access to brokered-freight records under 49 CFR part 371.
FMCSA broker transparency docket
Verify carrier authority and insurance before dispatch
Do not rely on an old certificate. Check operating status, insurance, cargo needs and any shipment-specific endorsements before tender.
Document accessorial charges
Detention, redelivery, storage, layover, lumper and similar charges should be approved and tied to the shipment record before invoicing.

How to complete this agreement

Enter authority details. Add broker and carrier legal names, MC/USDOT numbers, addresses and governing state.
Define the covered traffic. Describe lanes, cargo types, excluded cargo and how rate confirmations will be accepted.
Set payment mechanics. Choose payment days, clean invoice documents and the invoice dispute deadline.
Confirm insurance and safety terms. Enter liability and cargo limits and keep the no-rebrokering language unless specifically negotiated.
Add records and data safeguards. Keep the broker records, confidentiality and data clauses because they support payment and claims.
Review and sign. Check authority status and insurance certificates before signing and before the first dispatch.

Frequently asked questions

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

No. A broker-carrier agreement governs the broker and the motor carrier that physically transports freight. A broker-shipper agreement governs the broker and the customer arranging transportation. The carrier-side contract needs stronger authority, insurance, re-brokering, cargo-claims and payment-document clauses.

Why does the agreement mention FMCSA financial responsibility?

FMCSA broker authority depends on financial security and process-agent filings. If the broker loses authority or a required filing lapses, the carrier needs notice and a remedy because freight charges and claims may be affected.

Should the carrier be allowed to re-broker freight?

Usually no, unless the broker approves it for a specific shipment. Unauthorized re-brokering hides who actually carried the load and can create insurance, safety and cargo-claim problems.

What is a clean invoice?

A clean invoice is one the broker can verify without chasing missing documents: shipment reference, rate confirmation, bill of lading, proof of delivery and approved accessorials. This template makes those items prerequisites to the payment clock.

Does declared value equal cargo insurance?

No. Declared value may affect carrier liability under the tariff, rate confirmation or contract, but cargo insurance is separate. The agreement keeps those ideas distinct so neither party makes an accidental insurance promise.

What records should the broker keep?

At minimum, the transaction record should support the shipment, parties, carrier, charges, compensation, bill of lading or freight bill, payment and claim history. FMCSA broker transparency materials focus on those records for a reason.

Can electronic signatures be used?

Yes, for many commercial freight contracts, but the agreement still keeps notices and shipment records in writing. E-signatures do not remove regulatory recordkeeping, authority or insurance obligations.

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Disclaimer

This template and guide are for general information only and do not constitute legal, tax, privacy, insurance, construction, transport, or health-care compliance advice. Check the current law, regulator guidance, solicitation terms, and contract facts before signing.