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Shipping Program Agreement

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SHIPPING PROGRAM AGREEMENT

Parties and Effective Date

This Shipping Program Agreement (the Agreement) is entered into as of (Effective Date) by and between:

Recitals

WHEREAS, Provider operates a shipping program offering transportation, handling and related logistics services and maintains the personnel, facilities and equipment necessary to perform such services; and

WHEREAS, Client desires to engage Provider to perform shipping services under the terms and conditions set forth in this Agreement and Provider agrees to provide such services to Client in accordance with this Agreement; and

WHEREAS, the parties intend that this Agreement set forth the scope, fees, performance standards and other material terms of their shipping relationship.

Scope of Work

Provider shall perform shipping, pickup, delivery, handling, tracking, customs coordination (if applicable) and related logistics services for Client as set forth below. Provider shall perform services in a commercially reasonable manner and in accordance with industry standards and applicable law.

Payment Terms

Client shall pay Provider the fees described in this section in consideration for Provider's performance under this Agreement. All fees are payable in United States Dollars unless otherwise specified in writing.

Late payments shall bear interest at a rate of percent per month or the maximum rate permitted by law, whichever is less. In addition, Provider may assess a late fee of for each invoice past due more than days.

Term and Termination

The term of this Agreement shall commence on and shall continue until unless earlier terminated as provided herein.

Confidentiality

Each party acknowledges that, in connection with the performance of this Agreement, it may receive Confidential Information of the other party. "Confidential Information" means non-public information disclosed in any form that is designated as confidential or that a reasonable person would understand to be confidential given its nature. Confidential Information does not include information that (a) is or becomes publicly available without breach of this Agreement, (b) is lawfully received from a third party without restriction, or (c) is independently developed without use of the disclosing party's Confidential Information.

Each party shall: (i) use Confidential Information solely to perform obligations under this Agreement; (ii) restrict disclosure to employees, agents or subcontractors who have a need to know and are bound by confidentiality obligations no less restrictive than those herein; and (iii) take reasonable measures to protect Confidential Information from unauthorized disclosure. Upon termination or written request, recipient will return or destroy Confidential Information as directed by the discloser.

Mutual confidentiality obligations apply:

Liability and Insurance (Summary)

Provider shall maintain commercially reasonable insurance coverages, including liability and cargo insurance, in amounts customary for the industry. Provider's liability for loss or damage to shipments shall be limited to the lesser of the actual documented loss or the limits expressly stated in the bill of lading or shipping agreement, except to the extent such limitation is prohibited by applicable law.

Indemnification

Each party (Indemnitor) shall indemnify, defend and hold harmless the other party (Indemnitee) from and against any third-party claims, liabilities, damages, losses and expenses (including reasonable attorneys' fees) arising out of Indemnitor's breach of this Agreement, negligence, willful misconduct, or violation of law in connection with performance of services under this Agreement, except to the extent caused by Indemnitee's negligence or willful misconduct.

Governing Law and Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflicts of law principles. The parties will attempt in good faith to resolve disputes through negotiation; if unresolved, disputes shall be resolved by binding arbitration conducted in the governing state in accordance with arbitration rules selected by the parties.

Entire Agreement; Amendments

This Agreement, including any schedules and written attachments executed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, proposals and communications, whether written or oral. Any amendment or modification of this Agreement must be in writing and signed by authorized representatives of both parties.

Notices

Notices under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party designates in writing. Notices are effective upon personal delivery, one business day after sending by overnight courier, or three business days after deposit in the U.S. mail, postage prepaid.

Miscellaneous Provisions

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

Provider (Program Provider) - Print Name:

By:

Date:

Client - Print Name:

By:

Date:

Enter text✕

What a Shipping Program Agreement Covers

A Shipping Program Agreement is a written contract that defines the commercial relationship between a shipper and a carrier or logistics provider. It documents negotiated rates, service levels, billing and reconciliation methods, claims handling, insurance and indemnity obligations, accessorial charges, and performance metrics such as on-time delivery and transit times. The agreement typically attaches rate tables, shipment routing instructions, and SLA exhibits. For U.S. transactions, parties commonly execute these agreements electronically under ESIGN or state UETA statutes, while confirming any state-specific notarization or witness rules that may affect enforceability.

Why organizations use a Shipping Program Agreement

A clear Shipping Program Agreement reduces billing disputes, defines risk allocation, standardizes claims procedures, and fixes commercial terms for high-volume shipping. It establishes responsibilities for loss, damage, and delays while providing an audit trail for invoicing and regulatory compliance.

Why organizations use a Shipping Program Agreement

Who typically completes a Shipping Program Agreement

Multiple internal stakeholders should review the agreement before signing to ensure operational and legal alignment.

  • Logistics managers and procurement teams responsible for carrier selection and rate negotiations.
  • Carrier commercial and operations contacts that accept service obligations and claim procedures.
  • Legal and risk teams that review indemnities, insurance limits, and governing law clauses.

Core elements to include in a professional agreement

A complete Shipping Program Agreement balances commercial terms with operational clarity and legal protections; include rate exhibits, KPIs, claims steps, and governance provisions.

Rate Schedule

Includes negotiated per-pound or per-shipment rates, effective dates, zone mappings, and conditions for fuel or surcharge adjustments.

Service Levels

Defines transit time commitments, delivery windows, exceptions, measurement methodology, and remedies for missed SLAs.

Billing & Payment

Specifies invoicing cadence, dispute procedures, net payment terms, billing reconciliation, and chargeback mechanisms.

Claims Handling

Outlines timelines, required documentation for loss or damage claims, contact points, and dispute escalation steps.

Insurance & Indemnity

States required insurance minimums, allocation of liability, caps on consequential damages, and indemnification triggers.

Term & Termination

Specifies initial term, renewal process, notice periods, early termination rights, and post-termination obligations like final reconciliations.

Step-by-step: how to complete and execute the agreement

Use this sequence to prepare, approve, and sign a Shipping Program Agreement efficiently.

  • 01
    Draft terms: Assemble rate exhibits and SLA metrics for internal review.
  • 02
    Legal review: Have counsel confirm indemnities, limits, and governing law.
  • 03
    Operational sign-off: Get logistics and billing teams to verify processes and contacts.
  • 04
    Execute: Sign electronically or in wet ink per execution clause.

How to configure a digital signing workflow

Set these workflow items when sending the agreement for electronic execution to reduce friction and ensure auditability.

Field Configuration
Signer authentication method Email link, SMS code, or KBA based on risk level
Signature order and routing Sequential or parallel routing per party approvals
Required fields and attachments Make rate exhibits and insurance certificates mandatory
Audit trail capture Collect timestamps, IPs, and completion certificates

Where to send and how execution typically flows

A typical routing path ensures the right teams review and accept operational and financial responsibilities.

  • Originator: Procurement or logistics uploads the agreement.
  • Legal reviewer: Counsel confirms risk allocation and clauses.
  • Operational approver: Billing and operations verify exhibits and contacts.
  • Final signature: Authorized signatory executes with audit trail.

Delivery channels and eSignature requirements

Align chosen delivery channels with your compliance posture; for higher-risk agreements, require stronger authentication and recordkeeping to support enforceability and audits.

  • Email delivery: Common and low friction
  • Secure signing link: Good for bulk or guest signers
  • API / integration: Automates sending from ERP or TMS

Typical timelines, notices, and processing expectations

Common timing checkpoints and notice windows used in Shipping Program Agreements to manage renewals, rate changes, and claims.

Effective date and term:

Agreement begins on the Effective Date and runs for the stated initial term.

Renewal notice window:

Often 30 to 90 days advance written notice before renewal or price change.

Rate adjustment notice:

Carriers typically provide 30 days notice for fuel or surcharge changes.

Claims filing deadline:

Claims often must be filed within specified days after delivery per the contract.

Billing dispute window:

Disputes commonly required to be submitted within 60 to 120 days.

Key milestones in the agreement lifecycle

Track these numbered stages from negotiation through post-termination reconciliation to monitor obligations and deadlines.

01

Negotiation Complete

All commercial and operational terms agreed and documented.

02

Internal Approvals

Legal, procurement, and operations have signed off.

03

Execution Date

Document is signed and becomes legally effective.

04

Final Reconciliation

Post-termination billing and claims are closed out per contract timelines.

Common mistakes when preparing this agreement

  • Leaving rate exhibits vague or unreferenced, which causes billing disputes and reconciliation delays.
  • Failing to specify a clear claims process and required documentation, resulting in rejected or delayed claims.
  • Not aligning operational contacts and escalation paths, causing missed SLAs and unresolved operational issues.
  • Overlooking required insurance minimums or failing to require certificates of insurance before commencing service.

Penalties and legal risks of an incorrect or incomplete agreement

Liability gap: Carrier or shipper may be left exposed to uninsured losses.
Disputed charges: Ambiguous billing terms lead to protracted disputes and withheld payments.
Regulatory exposure: Noncompliance with safety or transportation laws can trigger fines.
Claims denial: Improper claim documentation can void recovery rights.
Contract voidance: Improper execution formalities may impair enforceability.
Operational disruption: Missing SLAs and contacts cause service interruptions.

Security and compliance details to document

Encryption Transit: TLS 1.2/1.3
Encryption At Rest: AES-256
Audit Trail: Timestamps, IPs, action log
Certifications: SOC 2 Type II, ISO 27001
Regulatory Compliance: ESIGN, UETA, HIPAA (BAA required)
Accessibility: WCAG 2.0 Level AA

How a Shipping Program Agreement differs from similar documents

Compare purpose and execution attributes to determine which document best fits your commercial and operational needs.

Criteria Shipping Program Agreement Master Service Agreement
Purpose rates and slas broad services and deliverables
Notarization typically not required rarely required
Typical Duration annual or multi-year multi-year with milestones
eSigning Friendly

eSignature vendor comparison for signing a Shipping Program Agreement

Basic vendor pricing and feature differences relevant to executing and managing Shipping Program Agreements electronically. signNow appears first per platform 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

Frequently asked questions about execution and enforceability

Answers to common questions about signing, notarization, recordkeeping, and legal validity for Shipping Program Agreements in the U.S.


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