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Agreement Between Shipper and Carrier

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Agreement between Shipper and Carrier (Trucking Company) to Transport Products

Agreement made on the between

, a corporation organized and existing under the laws of the state of , with its principal office located at

, referred to herein as Shipper, and

, a corporation organized and existing under the laws of the state of , with its principal office located at

, referred to herein as Carrier.

Whereas, Shipper is engaged in the business of (briefly describe) ; and

Whereas, Shipper desires to contract with Carrier for the transportation of its products (hereinafter called the Products); and

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. On or before Carrier shall promptly transport certain Products from Shipper’s place of business at the address set forth above to . All loading and unloading of Products shall be done by Carrier at Carrier’s sole expense. Products are to be loaded on or before and delivered and unloaded at on or before . An inventory of the Products to be shipped is set forth in Exhibit A.

2. Receipts

Carrier shall give the appropriate receipt to Shippers and shall furnish Shipper with copies of such receipts. Furthermore, Carrier shall take receipts, in duplicate, from all consignees for shipments delivered and give copies of such receipts to Shipper. Shipper shall give receipts to Carrier on delivery of all Products by Carrier to Shipper, and Carrier shall give receipt to Shipper for all Products delivered to Carrier by Shipper. All receipts given or taken under this section shall be on forms prescribed by Shipper and shall carry notations as to the apparent condition of the Products at the time of receipt or delivery, if such Products is in other than good condition.

3. Deliveries of Products Shipped on Bills of Lading

Subject to instructions from Shipper, no deliveries of Products shipped on order bills, or on straight bills of lading subject to delivery orders, shall be made by Carrier until after the original order bills of lading or the delivery orders, properly indorsed, have been surrendered to Carrier. Carrier shall promptly deliver to Shipper all such original bills of lading and delivery orders, properly indorsed, that are surrendered by consignees on delivery of Products handled under this Agreement.

4. Collections

A. If requested by Shipper so to do, Carrier shall collect and pay to Shipper's agent, on the same day collected, whenever feasible, but in no event later than noon of the next succeeding business day, all charges on inbound Products and all charges from consignors on outbound Products billed prepaid. Carrier shall furnish receipts for any sums so collected on forms and in the manner prescribed by Shipper. Should Carrier be unable to make such collections on inbound Products, Carrier shall return the shipment to Shipper at the point designated by Shipper's agent and receipt shall be given to Carrier for the same. Both parties will initial below if this is being requested by Shipper.

Carrier
Shipper

B. All collections shall be made in cash unless otherwise authorized in writing by Shipper. Carrier shall in no case be liable for the payment of checks, or other noncash collections, that are accepted by Carrier under such written authorization.

C. If Carrier violates the provisions of this section, Carrier shall be directly responsible to Shipper for the Products charges involved in such collection or collections, and Shipper will deduct such charges from any amounts due Carrier for Carrier's services as provided in this Agreement. Shipper need not exhaust Shipper's remedies against the person or persons primarily liable for such Products charges.

5. Loss or Damage to Products

Carrier's liability for loss or damage to Products handled under this Agreement, while in Carrier's possession, shall be that of an insurer, and the records of Shipper as to the condition of Products when received by Shipper from Carrier or when delivered by Shipper to Carrier shall be conclusive as between the parties. Such Products shall be deemed to be in Carrier's possession until its delivery to and acceptance by Shipper or by the consignee as evidenced by the giving or taking of the receipts provided for in this agreement.

6. Indemnity

Carrier shall indemnify Shipper against any and all loss, damage, cost, and expense, including attorney's fees, that may be suffered or incurred by Shipper, or by any person or persons, firm, association, or corporation, resulting from any of the following:

A. Injury to or death of persons, including Carrier or Carrier's employees, or loss or destruction of, or damage or delay to, Products, including the conversion of Products, caused by or resulting in any manner from any acts or omissions, negligent or otherwise, of Carrier or of any of Carrier's agents, servants, or employees in performing or failing to perform any of the services or duties to be performed by Carrier under this Agreement.

B. The issuance of any false or fraudulent bills of lading or delivery orders or the giving or receiving of any false or fraudulent receipts or delivery orders for any Products or for Products charges whether by Carrier or by any of Carrier's agents or employees.

C. Failure of Carrier, or any of Carrier's agents or employees, to make collections and remittances to Shipper as provided in this Agreement or to take up and deliver to Shipper order bills of lading or delivery orders as provided in this Agreement.

D. Theft, embezzlement, or defalcation by Carrier or by any of Carrier's agents or employees. Carrier shall comply strictly with all laws, rules, regulations, and ordinances, state, federal, or municipal, that are applicable to the operations and service to be performed by Carrier under this Agreement, and shall indemnify Shipper against all liability for any failure or default by Carrier in this respect.

7. Compensation

For the transportation and delivery of Products, and for the services incidental to such transportation and delivery, as provided in this Agreement, Shipper shall pay to Carrier as follows (rate of compensation) . Actual weights as shown by Shipper's records shall furnish the basis of payments under this Agreement. All payments due Carrier shall be made not later than the day of each calendar month for the business transacted during the next previous month.

8. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

9. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

10. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

11. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

12. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

13. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

14. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.

By:

By:

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What the Agreement Between Shipper and Carrier Covers

An Agreement Between Shipper and Carrier is a written contract that defines the terms governing the transportation of goods: parties and contact details, scope of carriage, pickup and delivery obligations, rates and payment terms, liability and insurance limits, claims handling, indemnities, and termination rights. It memorializes operational expectations, clarifies who bears loss or delay risk, and creates enforceable remedies for nonperformance. The agreement is commonly used by freight brokers, carriers, shippers, and logistics providers to reduce disputes and support regulatory compliance while preserving evidence for claims or audits.

Why a Clear Shipper–Carrier Agreement Matters

A complete, signed agreement reduces operational disputes, assigns liability for loss or delay, clarifies payment and accessorial charges, and documents insurance and claims procedures.

Why a Clear Shipper–Carrier Agreement Matters

Who Typically Prepares and Signs This Agreement

Signatories should be authorized signers listed on corporate resolution or held out by signature authority to avoid disputes about execution.

  • Shippers and consignors who need contractual protection and clear billing terms.
  • Motor carriers, rail carriers, and third-party logistics providers handling transport operations.
  • Brokers, freight forwarders, insurance adjusters, and legal counsel involved in claims or compliance.

Core Elements to Include in a Professional Shipper–Carrier Agreement

Use clear, unambiguous language in each section. Include operational specifics, risk allocation, insurance requirements, payment terms, claims procedures, and governing law to ensure the contract functions under real-world transport conditions.

Parties

Full legal names, business type, and contact information for shipper and carrier; include MC or DOT numbers where applicable.

Scope of Services

Define pickup/delivery locations, allowed commodities, routing authority, and any special handling or temperature-control requirements.

Rates and Payments

Specify base rates, accessorial charges, invoicing schedule, payment terms, late fees, and required remittance details.

Liability & Insurance

State cargo liability limits, required insurance types and limits, and certificates to be provided prior to carriage.

Claims Procedure

Set timeframes and notice requirements for loss/damage claims and the documents required to support a claim.

Termination & Remedies

Describe termination rights, cure periods, indemnities, limitation of liability clauses, and dispute resolution mechanisms.

Essential Information to Provide in the Agreement

Shipper Name: Full legal entity name
Carrier Name: Operating company name
Shipment Details: Commodity, weight, and dimensions
Pickup/Delivery: Dates and locations
Charges: Rate structure and currency
Signatures: Authorized signer and date

Step-by-Step: How to Complete the Agreement

Follow these sequential steps to prepare, review, and execute the agreement so it is enforceable and operationally usable.

  • 01
    Draft: Enter full party details and scope of carriage.
  • 02
    Confirm Rates: List base rate, accessorials, and billing terms clearly.
  • 03
    Insurance: Specify coverage and require certificate of insurance.
  • 04
    Execute: Obtain authorized signatures and record execution date.

How to Set Up an Online Signing Workflow

Configure the digital workflow to match the agreement’s execution order, authentication level, and required attachments before sending for signature.

Field Configuration
Authentication Method Email link | SMS code | KBA where required
Signing Order Sequential or parallel per contract terms
Required Attachments Attach COI, bill of lading, or rate confirmation
Retention Settings Save signed PDF and audit trail automatically

Where to Send and How to Route the Completed Agreement

Decide recipients and retention points up front. Typical flows include shipper, carrier legal, billing, and an archived copy for audits.

  • Shipper Copy: Send signed PDF to shipper billing contact
  • Carrier Copy: Send signed PDF to carrier operations and legal
  • Insurance: Provide COI and final contract to insurer
  • Archive: Store signed agreement with audit trail

Digital Signing and System Integration Considerations

Ensure the platform can retain tamper-evident signed copies and produce an admissible audit trail for claims or regulatory review.

  • Authentication Levels: Email, SMS, or KBA depending on risk and compliance
  • Integration Needs: Connect to TMS, ERP, or document storage systems
  • File Formats: Support for PDF and DOCX outputs with audit logs

Common Timelines and Deadlines to Track

Track execution, effective dates, pickup/delivery windows, and claim deadlines to reduce disputes and preserve rights.

Execution Date:

Date parties sign; governs when obligations begin

Pickup Window:

Scheduled pickup date and allowed delay days

Delivery Window:

Expected delivery date and tolerance period

Claims Notice:

Provide written notice per contract; preserve evidence promptly

Payment Due:

Invoice terms and late payment penalties

Key Milestones from Negotiation to Recordkeeping

A sequential view of the agreement lifecycle helps teams meet operational deadlines and retain records required for claims or audits.

01

Negotiate Terms

Agree rates, liability, and service levels before signing

02

Execute Contract

Obtain authorized signatures and effective date

03

Perform Transport

Carrier completes pickup, transit, and delivery

04

Claims & Retention

File claims within contract windows and retain records

Common Mistakes to Avoid

  • Vague scope of services that omits commodity or handling needs
  • Missing insurance details or absent certificate of insurance
  • Unclear payment terms leaving accessorial disputes unresolved
  • Unauthorized signers executing without corporate authority

Consequences of an Incorrect or Incomplete Agreement

Contractual Liability: Carrier or shipper pays unexpected damages
Insurance Denial: Coverage may be denied for noncompliance
Regulatory Penalties: FMCSA or other fines for safety violations
Claims Loss: Late notice may forfeit recovery rights
Payment Disputes: Cash-flow impacts from contested invoices
Reputational Harm: Operational delays and client dissatisfaction

How Other Organizations Use Signed Carrier Agreements

Real-world examples show how firms reduce disputes, speed billing, and tighten compliance using signed transport contracts and digital workflows.

Tech Data

Tech Data standardized carrier agreements across divisions to streamline billing

  • bulk send reduced turnaround time
  • the result was faster revenue recognition and fewer disputes across global shipments.

Optica Ventures

Optica Ventures used simple, mobile-friendly agreements to close deals remotely

  • teams signed on mobile at pickup
  • this lowered operational friction and improved on-time deliveries.

Common eSignature Pricing and Feature Comparison

Compare typical starting prices and core capabilities for eSignature vendors. signNow is listed first per product comparisons; verify plan details with each vendor before purchasing.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical Tips for Accurate and Efficient Completion

Adopt standardized clauses, use checklists, and confirm authorities before execution to reduce post-signature disputes.

Use Standard Templates
Start from a vetted standard agreement and limit one-off language to essential project-specific terms to avoid inconsistent obligations.
Verify Signatory Authority
Confirm signers are authorized via corporate resolution or delegated authority to prevent later challenges to execution.
Require Insurance Certificates
Obtain COIs before movement; verify policy limits and endorsements required by the contract to reduce claim denials.
Record Audit Trail
Preserve signed PDFs plus audit logs showing signer identity, timestamp, and IP address for claims or regulatory review.

Frequently Asked Questions About Execution and Validity

Answers to common questions about electronic execution, enforceability, witness requirements, and recordkeeping for shipper–carrier agreements.


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