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Shipment Fee Agreement

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SHIPMENT FEE AGREEMENT

This Shipment Fee Agreement (the Agreement) is entered into by and between:

Shipper Name:    Address:

Carrier Name:    Address:

RECITALS

WHEREAS, Shipper is engaged in the business of selling, distributing or otherwise arranging for the shipment of goods and requires transportation and handling services for specified consignments; and

WHEREAS, Carrier is duly licensed and equipped to provide transportation and logistics services and agrees to transport, deliver and handle Shipper's consignments in accordance with the terms set forth in this Agreement.

WHEREAS, the parties desire to set forth the fees, payment terms and other obligations applicable to shipments subject to this Agreement.

SCOPE OF WORK

Carrier shall perform pickup, transportation, delivery and handling services for goods tendered by Shipper as specified below. Services shall include loading and unloading at locations agreed by the parties, provision of standard transportation equipment, and completion of carrier paperwork.

PAYMENT TERMS

The parties agree that the compensation for Carrier's services shall be as follows:

Late payments shall incur interest as described below unless otherwise agreed in writing.

Wire transfer    Check    Card    Other:

TERM AND TERMINATION

This Agreement commences on Start Date and continues until End Date, unless earlier terminated as provided below.

Commencement Date:    Termination Date:

Either party may terminate this Agreement for material breach by the other party if such breach is not cured within the notice period set forth above. Termination for insolvency, revocation of required licenses, or unlawful conduct may be immediate.

CONFIDENTIALITY

Each party (the Receiving Party) shall keep confidential and shall not disclose to any third party any non-public information disclosed by the other party (the Disclosing Party) in connection with this Agreement, including pricing, shipment manifests, customer lists and operational details, except as required by law or to perform obligations under this Agreement. Confidential information shall be used solely for the purposes of fulfilling obligations under this Agreement.

The obligations in this Confidentiality section shall survive termination of this Agreement for a period of three (3) years or longer where required by applicable laws or contractual obligations to third parties.

INDEMNITY AND LIABILITY

Each party shall indemnify, defend and hold harmless the other party from and against claims, losses or liabilities arising from its negligent acts, willful misconduct or breach of this Agreement. Carrier's liability for loss or damage to goods shall be limited to the lesser of actual proven loss or the applicable statutory or tariff limits, unless a higher value and corresponding fee are agreed in writing prior to shipment.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles.

ENTIRE AGREEMENT

This Agreement, including any schedules and attachments expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior negotiations, proposals, or agreements, whether written or oral. No amendment or modification shall be effective unless in writing and signed by authorized representatives of both parties.

NOTICES

Notices required under this Agreement shall be delivered to the contact information provided below and shall be effective upon receipt. Each party designates the following representative for notices:

MISCELLANEOUS

The parties acknowledge that Carrier may subcontract transportation services to qualified subcontractors, provided Carrier remains responsible for performance under this Agreement. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Shipper:

By:

Date:

Carrier:

By:

Date:

Enter text✕

What a Shipment Fee Agreement Covers

A Shipment Fee Agreement is a written contract that defines charges, billing cycles, responsibilities, and dispute procedures between parties responsible for transporting goods. It sets fee types (flat, per-mile, fuel surcharge), payment timing, invoicing requirements, and conditions that trigger rate changes. The agreement clarifies liability limits, insurance obligations, handling of delays and demurrage, and any required documentation such as bills of lading. Well‑drafted agreements reduce billing disputes and support accurate tax and regulatory reporting across interstate transport governed by federal and state law.

Why a Clear Shipment Fee Agreement Matters

A precise agreement reduces disputes, improves cash flow, and documents responsibilities for carriers, shippers, and brokers. It provides enforceable billing terms, supports tax reporting, and creates an audit trail useful in collections or regulatory reviews.

Why a Clear Shipment Fee Agreement Matters

Who typically completes this agreement

Operational and commercial teams create or approve shipment fee agreements before services begin.

  • Logistics managers and operations leads responsible for routing, scheduling, and carrier selection.
  • Freight brokers and third‑party logistics providers (3PLs) who set pass‑through fees and commissions.
  • Shippers, vendors, and carriers that need clear billing and liability terms for interstate transport.

Use parties’ standard legal names and authorized signers to avoid enforceability issues and reconcile invoices quickly.

Core elements to include in a professional agreement

A robust Shipment Fee Agreement combines clear fee definitions, invoice mechanics, liability limits, and operational terms so all parties share expectations.

Parties

Identify each party by full legal name, entity type, and principal place of business to ensure contractual clarity and billing accuracy.

Fee Schedule

List each fee line item (base rate, fuel surcharge, detention, demurrage) with units, formulas, and currency to prevent ambiguous invoicing.

Billing Terms

Specify invoice frequency, Net terms (e.g., Net 30), acceptable payment methods, late fees, and conditions for chargebacks.

Liability & Insurance

Define carrier liability caps, insurance requirements, and procedures for loss, damage, or shortage claims including timelines for notice.

Dispute Resolution

State the escalation path, notice requirements, negotiation period, and whether arbitration or courts resolve unresolved billing disputes.

Amendments

Require written amendments signed by authorized representatives and describe how rate adjustments or surcharge formulas will be communicated.

How to complete the agreement in four steps

Follow these sequential steps to prepare, approve, sign, and distribute a Shipment Fee Agreement.

  • 01
    Prepare document: Populate parties, fee schedule, and billing terms.
  • 02
    Internal review: Legal and finance review for tax and liability issues.
  • 03
    Execute signatures: Collect authorized signatures and dates from all parties.
  • 04
    Distribute copies: Send fully executed copies to billing, operations, and archive.

Typical online workflow settings for digital completion

Configure your e-signature workflow to match signer order, authentication needs, and notification preferences.

Field Configuration
Template Name Shipment Fee Agreement template for reuse
Signer Order Sequential or parallel depending on approval flow
Authentication Email link, SMS code, or advanced verification
Notifications Email reminders and completion receipts enabled

Where to send and how executed copies flow

Completed agreements should be routed to parties and internal teams for invoicing, operations, and recordkeeping.

  • Sender uploads: Upload the final draft into the signing platform.
  • Assign fields: Place signature, date, and data fields for each signer.
  • Deliver to signers: Send by email link or direct signing URL.
  • Distribute executed: Automatically email PDF and store in archive.

Technical considerations for eSigning and distribution

Choose a platform that supports your authentication, storage, and integration needs before sending documents.

  • Integrations: Salesforce, NetSuite, Google Workspace supported
  • Formats Supported: PDF, DOCX, HTML, Excel input/output
  • Authentication Options: Email link, SMS code, or KBA

Ensure the platform provides an audit trail, secure storage, and export options so executed agreements are reproducible for audits or disputes.

Standard timing and deadlines to include

Specify clear deadlines for invoicing, payment, and dispute notices to avoid ambiguity and accelerate collections.

Agreement Effective Date:

Takes effect on the stated Effective Date or upon final signature.

Invoice Submission Window:

Invoices submitted within 15 days after delivery unless otherwise agreed.

Payment Due Date:

Net 30 from invoice date is common; specify exact calendar days.

Dispute Notice Period:

Claim must be submitted in writing within 30 days of invoice receipt.

Late Fee Trigger:

Late fees apply after the stated payment due date.

Key milestones from draft to first invoice

Track milestones so the agreement is effective and billing starts without operational delays.

01

Draft Approval

Legal and finance approve terms before signature.

02

Execution

All parties sign and date the agreement.

03

Service Start

Carrier begins services per Effective Date.

04

First Invoice Issued

Billing follows the invoice submission window in the contract.

Common preparation mistakes to avoid

  • Using undefined fee terms that invite disputes and require interpretation by third parties or courts.
  • Failing to specify the currency or units for rates, leading to inconsistent invoice calculations across borders.
  • Omitting insurer names, coverage amounts, or claim procedures, which complicates recovery after loss or damage.
  • Relying on oral side agreements or emails that contradict the written fee schedule and are hard to enforce.

Potential penalties and legal risks

Enforceability Risk: Unclear terms may render fees unenforceable.
Tax Reporting: Incorrect classification can trigger IRS audits.
Contractual Liability: Excessive liability may expose parties to claims.
Operational Delays: Ambiguous notice periods slow dispute resolution.
Regulatory Noncompliance: Failure to meet transport regulations risks fines.
Credit Impact: Unpaid invoices harm credit and supplier relationships.

eSignature vendor comparison for executing Shipment Fee Agreements

Compare typical pricing and enterprise features to align platform selection with security, compliance, and volume needs.

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 by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year No cap No cap No cap

Frequently asked questions about execution and disputes

Answers to common questions about signature validity, notarization, amendments, and recordkeeping for shipment fee agreements.


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