Establishing secure connection…Loading editor…Preparing document…

Freight Management Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FREIGHT MANAGEMENT AGREEMENT

This Freight Management Agreement (the "Agreement") is made effective as of by and between:

RECITALS

WHEREAS, Client operates a business that requires shipment and transportation of goods and seeks a qualified freight manager to coordinate, procure and oversee carriage; and

WHEREAS, Freight Manager represents that it has the experience, licenses, personnel and contractual relationships with carriers necessary to perform freight management services on behalf of Client under the terms and conditions set forth in this Agreement; and

WHEREAS, the parties desire to set forth the scope, compensation, responsibilities, and limitations governing Freight Manager's performance.

1. DEFINITIONS

"Carrier" means any third-party motor carrier, railroad, ocean common carrier, air carrier or other transporter retained by Freight Manager to perform physical carriage. "Services" means freight management, tendering, route planning, carrier selection, rate negotiation, tracking and claims assistance as described below.

2. SCOPE OF WORK

Freight Manager shall perform freight management services for shipments as mutually agreed in writing. Services may include rate negotiation, carrier procurement, booking, documentation preparation, routing instructions, shipment tracking, exception management, claims coordination, and performance reporting.

3. CARRIER SELECTION AND CONTRACTING

Freight Manager shall select carriers in Freight Manager's reasonable commercial judgment, subject to any routing, carrier qualifications, insurance or rate restrictions provided by Client. Freight Manager acts as agent for Client solely for the purpose of selecting and arranging carriage; Carrier contracts remain between Client and Carrier unless otherwise expressly agreed in writing.

4. PAYMENT TERMS

As compensation for the Services, Client shall pay Freight Manager the fees set forth below. All amounts are payable in U.S. dollars unless otherwise agreed.

Late payments shall accrue interest at on overdue balances or the maximum allowable by law, whichever is less. Client is responsible for all reasonable costs of collection, including attorneys' fees.

5. TERM AND TERMINATION

This Agreement commences on and continues until unless earlier terminated in accordance with this Section.

Either party may terminate for convenience upon days' prior written notice. Either party may terminate immediately for material breach that remains uncured for 15 days following written notice. Termination shall not relieve Client of payment obligations for Services performed or commitments made prior to termination.

6. CONFIDENTIALITY

Each party shall maintain as confidential all non-public business information disclosed by the other party that is marked or reasonably understood to be confidential ("Confidential Information"). Confidential Information shall not include information that is (a) publicly available through no fault of the receiving party; (b) rightfully received from a third party without restriction; or (c) independently developed by the receiving party without use of Confidential Information. The receiving party shall use Confidential Information only to perform its obligations under this Agreement and shall not disclose it to third parties except to employees, agents, or contractors who have a need to know and are bound by confidentiality obligations no less protective than those herein. Upon termination, Confidential Information and all copies shall be returned or destroyed upon request.

7. INSURANCE

Freight Manager shall maintain commercially reasonable insurance covering its operations and shall require carriers to maintain appropriate cargo and liability insurance. Certificates of insurance shall be provided upon Client's request.

8. INDEMNIFICATION AND LIMITATION OF LIABILITY

Each party shall indemnify, defend and hold harmless the other party from claims, losses or liabilities arising from the indemnifying party's negligent acts or willful misconduct in connection with this Agreement. Freight Manager's liability for direct damages shall be limited to the lesser of (a) fees paid to Freight Manager under this Agreement for the twelve months preceding the claim; or (b) $100,000. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR CONSEQUENTIAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES, LOSS OF PROFITS, OR LOSS OF BUSINESS OPPORTUNITY, EXCEPT FOR LIABILITY ARISING FROM WILLFUL MISCONDUCT OR GROSS NEGLIGENCE.

9. COMPLIANCE WITH LAWS

Each party shall comply with all applicable laws, rules and regulations, including but not limited to transportation, customs, export control and licensing requirements. Freight Manager shall use commercially reasonable efforts to ensure carriers comply with applicable safety, licensing and insurance requirements.

10. RECORDS, AUDIT AND REPORTING

Freight Manager shall maintain records relating to shipments and charges for a period of three years from the date of the relevant shipment. Client or its designated agent may audit such records upon reasonable prior notice during normal business hours. Freight Manager shall provide routine performance reports as agreed in writing.

11. FORCE MAJEURE

Neither party shall be liable for delays or failures in performance caused by acts beyond its reasonable control, including but not limited to acts of God, war, terrorism, strikes, carrier insolvency, embargoes, government actions, or natural disasters. The affected party shall promptly notify the other and use commercially reasonable efforts to mitigate the effect of such events.

12. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state or jurisdiction specified by Client at the time of execution. Any dispute arising under this Agreement shall be resolved in the state or federal courts located within that jurisdiction unless the parties mutually agree otherwise in writing.

13. ENTIRE AGREEMENT

This Agreement, together with any written schedules, appendices or executed statements of work expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements, representations and understandings, whether written or oral. Any amendment or modification must be in writing and signed by duly authorized representatives of both parties.

14. NOTICES

15. MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign this Agreement without the prior written consent of the other, except that Freight Manager may assign to an affiliate or in connection with a sale of substantially all of its assets. Headings are for convenience only and do not affect interpretation.

Client:

By:

Date:

Freight Manager:

By:

Date:

Enter text✕

What a Freight Management Agreement Covers

A Freight Management Agreement is a contract between a shipper and a freight manager, carrier, or logistics provider that sets out responsibilities for transporting goods, rate structure, billing, insurance, liability limits, pickup and delivery windows, and performance metrics. It clarifies who arranges carriage, who pays freight charges, how claims are handled, and which party procures insurance. The agreement can cover spot shipments or ongoing contract carriage, and typically includes service-level expectations, reimbursement rules for accessorial charges, dispute resolution, and termination rights to reduce uncertainty in multimodal transportation.

Why a Formal Agreement Matters for Freight Operations

A written Freight Management Agreement reduces ambiguity about responsibilities, limits exposure to unforeseen charges, and documents agreed service levels and claims procedures. It supports regulatory compliance, clarifies liability allocation, and provides a contractual basis for recovery when goods are lost or damaged.

Why a Formal Agreement Matters for Freight Operations

Who Typically Completes a Freight Management Agreement

Final review often involves legal or risk teams to confirm indemnity, insurance limits, and any state- or industry-specific clauses.

  • Shippers and procurement teams responsible for purchasing freight services and approving rates and routing.
  • Third-party logistics providers managing routing, pickup, consolidation, and carrier selection on behalf of shippers.
  • Carriers and broker compliance teams that need to document liability limits, insurance, and payment terms.

Step-by-step: Completing the Agreement

Use this sequential checklist to prepare, review, and finalize a Freight Management Agreement for a single relationship or recurring shipments.

  • 01
    Collect Party Details: Gather legal names, addresses, and tax identifiers for each contracting party.
  • 02
    Define Scope: Specify shipment types, lanes, and excluded services clearly.
  • 03
    Agree Rates: Confirm base rates, surcharges, and conditions triggering extra fees.
  • 04
    Review Signatures: Obtain authorized signatures and date the document correctly.

How to Configure an Online Signing Workflow

Configure the digital workflow to ensure correct routing, signer authentication, and record retention before sending the agreement for signature.

Field Configuration
Signer Order Set sequential or parallel signing depending on approval needs.
Authentication Use email link or SMS code; add KBA or advanced auth for higher assurance.
Required Fields Make signature, date, and rate fields mandatory to avoid incomplete returns.
Retention Policy Configure automatic export to secure storage and set retention per policy.

Digital Signing and File Format Considerations

Ensure the platform you use captures an audit trail, stores tamper-evident copies, and integrates with your document management system.

  • Supported Formats: PDF, DOCX, and editable templates.
  • Authentication: Email, SMS code, or advanced methods.
  • Integrations: Connectors for ERPs, TMS, and cloud storage.

Typical eSigning Flow for Freight Agreements

This overview shows the common milestones when completing a Freight Management Agreement electronically.

  • Upload Document: Sender uploads the agreement in PDF or DOCX format.
  • Place Fields: Sender adds signature, initials, date, and rate fields.
  • Send to Signers: Signers receive an email or link to sign.
  • Completion Record: Signed copies and audit trail are stored automatically.

Common Time Limits and Notices to Include

Freight agreements typically specify deadlines for claims, invoice submission, notice of loss, and performance windows; list these explicitly to preserve rights.

Invoice Payment Terms:

Net 30 or agreed term; late fees and interest rates should be stated.

Loss/Damage Claims:

Require written notice within carrier's contractual window, commonly 7–30 days.

Cargo Inspection:

Specify inspection timeframe after delivery to preserve damage claims.

Service-Level Metrics:

Define pickup and delivery windows and penalties for missed SLAs.

Termination Notice:

State required notice period, often 30–90 days for recurring agreements.

Key Milestones in Agreement Lifecycle

Track these stages to move a Freight Management Agreement from draft to active operations and closure.

01

Drafting and Negotiation

Parties negotiate rates, service levels, and indemnities before signature.

02

Execution and Effective Date

Signed agreement becomes binding on the stated effective date.

03

Operational Onboarding

Set up routing instructions, EDI/API connections, and accessorial rules.

04

Claims and Closeout

Resolve disputes, finalize invoices, and archive records after final delivery.

Common Preparation Mistakes to Avoid

  • Leaving insurance limits unspecified, which can reduce recovery options for cargo loss or damage.
  • Using vague service descriptions that cause disputes over scope, routing, or handling requirements.
  • Failing to document accessorial fee triggers, leading to billing disagreements and delayed payments.
  • Not confirming authorized signatory authority, creating enforceability or rejection issues during claim adjudication.

Essential Data Elements to Include

Parties: Legal names
Addresses: Street, city, state, ZIP
Tax ID: EIN or SSN/TIN
Insurance: Carrier name and policy limits
Rates: Base and accessorial charges
Service Terms: Pickup, transit, delivery rules

Consequences of an Incomplete or Incorrect Agreement

Unrecoverable Loss: Claim denial risk
Billing Disputes: Payment delays
Regulatory Exposure: Fines possible
Contract Ambiguity: Litigation risk
Insurance Gaps: Coverage denial
Credit Holds: Operational interruptions

How This Agreement Differs from a Bill of Lading

Compare purpose and enforceability to understand which document applies to a specific shipment or relationship.

Criteria Freight Management Agreement Bill of Lading
Primary Purpose ongoing commercial terms receipt and title
Typical Parties shipper & manager shipper & carrier
Enforceable Terms rates, slas, indemnities carrier obligations
Use Case contractual relationship individual shipment

eSignature Vendor Comparison for Freight Agreement Signing

Basic pricing and compliance differences across common eSignature providers; signNow is listed first per comparison conventions.

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 free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Freight Agreement Use

Case summaries show how different organizations use agreements to streamline logistics and enforceability.

Optica Ventures — Operational Efficiency

Optica standardized templates for recurring lanes to reduce negotiation time.

  • The change cut manual routing exceptions.
  • The result: operations reported faster processing, clearer carrier responsibilities, and fewer billing disputes during peak volume periods.

Xerox — Systems Integration

Xerox integrated agreements with NetSuite to automate invoicing.

  • Integration removed duplicate entry.
  • This produced more consistent chargebacks, simplified audit trails, and improved reconciliation between freight bills and corporate accounting systems.

Practical Tips for Accurate and Efficient Completion

Adopt these practices to reduce errors, accelerate approvals, and ensure the agreement is enforceable and operationally useful.

Standardize Templates
Use a single vetted template with conditional fields to reduce negotiation and legal review time.
Confirm Signer Authority
Verify signatory titles and delegation to prevent later challenges to enforceability.
Document Pricing Triggers
Be explicit about fuel surcharges and accessorial charge triggers to avoid billing disputes.
Maintain Audit Trail
Capture timestamps, IP addresses, and signer authentication for every execution event.

Frequently Asked Questions About Freight Management Agreements

Answers to common operational and legal questions about creating, signing, and enforcing Freight Management Agreements.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users