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Shipping Services Agreement

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SHIPPING SERVICES AGREEMENT

This Shipping Services Agreement ("Agreement") is entered into as of by and between Carrier Name: with principal place of business at and Client Name: with principal place of business at .

WHEREAS

WHEREAS, Carrier is duly authorized, licensed, and equipped to perform transportation and logistics services for freight and goods, and possesses the personnel and equipment required to provide shipping services in a safe and commercially reasonable manner; and

WHEREAS, Client desires to engage Carrier to provide shipping, pickup, delivery, and related logistics services for Client's shipments on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend that Carrier shall provide the services as an independent contractor and not as an employee of Client.

SCOPE OF WORK

Carrier shall provide transportation services including, without limitation: pickup, handling, linehaul, delivery, tracking updates, and coordination of third-party services as may be required by Client for each shipment. Carrier shall comply with all applicable laws, regulations, and industry standards governing transport of the goods including those specific to hazardous materials if relevant to a particular shipment.

PAYMENT TERMS

All invoices are due in accordance with the payment schedule above. Client agrees to reimburse Carrier for reasonable out-of-pocket expenses, tolls, permits, and third-party charges incurred in connection with the services. Carrier reserves the right to suspend services for Client if payment is overdue by more than days after notice.

TERM AND TERMINATION

This Agreement commences on and shall continue in effect until unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement immediately for material breach by the other party if such breach remains uncured for a period of thirty (30) days after written notice specifying the breach. Termination shall not relieve Client of obligations to pay Carrier for services performed and expenses incurred prior to termination.

CONFIDENTIALITY

"Confidential Information" means all non-public information disclosed by one party to the other in connection with this Agreement, whether oral, written or electronic, that is designated as confidential or that a reasonable person would understand to be confidential. Each party shall maintain the confidentiality of the other's Confidential Information using at least the same degree of care it uses to protect its own confidential information, but in no event less than reasonable care. Confidential Information shall not include information that (a) is or becomes publicly known through no breach of this Agreement, (b) is independently developed by the receiving party without use of the disclosing party's Confidential Information, or (c) is required to be disclosed by law, provided the receiving party gives prompt notice to the disclosing party to allow for protective measures or confidential treatment.

INSURANCE; INDEMNIFICATION; LIMITATION OF LIABILITY

Carrier shall, at its own expense, maintain insurance customary for the transportation industry, including commercial general liability, automobile liability, and cargo insurance in amounts sufficient to cover claims reasonably foreseeable for the services provided. Upon request, Carrier will provide certificates of insurance to Client.

Carrier shall indemnify, defend, and hold harmless Client from and against all third-party claims, liabilities, losses, damages, and expenses arising out of Carrier's gross negligence or willful misconduct in performing the services. Client shall indemnify, defend, and hold harmless Carrier from and against all third-party claims arising from Client's negligence, improper packaging or labeling of goods, or misrepresentation of the nature of the goods.

Except for liability arising from gross negligence or willful misconduct, neither party shall be liable to the other for indirect, incidental, consequential, special, or punitive damages, including lost profits, even if advised of the possibility of such damages. The aggregate liability of Carrier for any claim arising under this Agreement shall not exceed the greater of the total fees paid by Client to Carrier in the twelve (12) months immediately preceding the event giving rise to the claim or the declared value of the goods as documented in Carrier's bill of lading for the shipment at issue.

FORCE MAJEURE

Neither party shall be liable for delays or failures in performance resulting from causes beyond its reasonable control, including acts of God, strikes, labor disputes, embargoes, acts of government, war, natural disasters, pandemics, or shortages of transportation capacity. The affected party shall give prompt written notice to the other and shall use commercially reasonable efforts to resume performance.

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of without regard to its conflicts of law rules. Any dispute arising out of or relating to this Agreement shall be resolved by arbitration in the agreed forum if the parties so elect, or otherwise by the courts located in the chosen jurisdiction.

ENTIRE AGREEMENT

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

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the contact persons and addresses set forth below or to such other address as the receiving party may designate by notice to the other party.

The parties acknowledge that they have read and understand this Agreement, that they are authorized to execute this Agreement on behalf of the respective parties, and that this Agreement is binding upon their respective successors and permitted assigns.

Carrier (Service Provider) — Printed Name:

By:

Date:

Client (Shipper) — Printed Name:

By:

Date:

Enter text✕

What a Shipping Services Agreement Covers

A Shipping Services Agreement is a written contract that sets the rights, responsibilities, and commercial terms between a shipper and a carrier or freight service provider. It defines the scope of services (pickup, transit, delivery), pricing and payment terms, liability and insurance limits, routing and handling instructions, performance standards, claims and indemnity procedures, and termination conditions. Well-drafted agreements reduce ambiguity in freight custody, clarify risk allocation for loss or damage, and establish the procedures for filing claims or seeking remedies when services fail to meet contractual standards.

Why a Clear Agreement Matters for Shipping

A Shipping Services Agreement protects both parties by allocating risk, specifying carrier obligations, and documenting compensation and insurance requirements. It lowers disputes, speeds claims resolution, and supports regulatory compliance for cross-state or interstate transport under U.S. law.

Why a Clear Agreement Matters for Shipping

Who Typically Prepares and Signs These Agreements

Multiple roles use shipping agreements to manage logistics, protect assets, and meet regulatory obligations; the right signer depends on organizational authority and contract value.

  • Logistics managers and procurement teams who source carriers and set service levels for recurring shipments.
  • Carrier operations or commercial managers who accept liability limits and coordinate pickup and delivery windows.
  • Legal or contracts departments reviewing indemnity, limitation of liability, and insurance clauses before execution.

Ensure signatory authority is documented: authorized officers, delegated procurement signers, or named agents should execute the agreement to make it binding.

Core Clauses to Include in a Professional Agreement

A Shipping Services Agreement should be concise but complete; include clauses that address liability, services, pricing, claims, and termination to reduce operational and legal friction.

Scope of Services

Define pickup locations, delivery destinations, transit methods, handling instructions, incoterms if international, and any temperature or hazardous material requirements to prevent scope disputes.

Rates & Payment

Specify base rates, accessorial charges, fuel surcharges, invoicing cadence, payment terms, late fees, and procedures for disputing charges to avoid billing disagreements.

Liability & Limits

Set carrier liability caps for loss or damage, exceptions for inherent vice or acts of God, and requirements for cargo insurance or declared value coverage.

Claims Process

Detail time limits to report loss or damage, required documentation, investigation procedures, and steps for recovery or subrogation to streamline claims handling.

Indemnity & Warranties

Allocate responsibility for third-party claims, include mutual indemnities where appropriate, and state any warranties about shipment condition or legal compliance.

Termination & Remedies

Describe termination for breach, notice periods, remedies available, and post-termination obligations such as final settlements and return of property.

Essential Data Points the Agreement Must Contain

Parties: Legal entity names
Service Description: Detailed service scope
Pricing: Rates and surcharges
Insurance: Coverage limits
Contact Info: Operational contacts
Effective Dates: Start and end date

Step-by-Step: Completing and Executing the Agreement

Follow a simple sequence to finalize the agreement and make it operational with minimal delay.

  • 01
    Draft: Prepare or import a template, insert parties and service details.
  • 02
    Review: Legal and operations review key clauses and insurance requirements.
  • 03
    Sign: Authorized signers execute by wet signature, RON, or eSignature as permitted.
  • 04
    Distribute: Provide fully executed copies to operations, billing, and insurance teams.

Configuring an Online Signing Workflow

Set up a secure, auditable signing flow that matches your operational sequence and authentication needs.

Field Configuration
Signer Order Sequential or parallel routing as required
Authentication Email, SMS code, or KBA per risk profile
Document Attachments Attach bills of lading, insurance certificates
Retention Set automatic archival and access permissions

Where to Send and How to Submit the Executed Agreement

After execution, route the agreement to operational teams, finance, and legal; store a signed copy in your contract management system.

  • Operations: Provide to dispatch and scheduling to implement terms
  • Billing: Send to accounts payable/receivable for invoicing
  • Insurance: Supply certificates and endorsements to carrier insurers
  • Legal Archive: Store final PDF with audit trail for compliance

Digital Signing and Platform Considerations

Choose a signing platform that provides an audit trail, access controls, and the authentication strength your risk profile requires.

  • File Formats: PDF and DOCX widely supported
  • Authentication: Email, SMS code, and stronger methods available
  • Integrations: Connectors for ERP and storage systems

Ensure the chosen system supports ESIGN and UETA legal requirements, preserves an audit trail, and secures documents in transit and at rest.

Typical Timelines and Processing Expectations

Establish clear deadlines for performance, claims, and renewals to avoid contract disputes and operational delays.

Performance Windows:

Set pickup and delivery windows with tolerance periods and service-level metrics

Claims Notice:

Require reporting of loss or damage within a defined number of days

Invoice Terms:

Specify net payment days and interest on late payments

Renewal Notices:

State automatic renewal or notice period for nonrenewal

Recordkeeping:

Define how long operational records will be retained for audit

Common Preparation Errors to Avoid

  • Vague service descriptions that omit handling requirements, causing disputes over responsibility for damage.
  • Leaving insurance and declared value fields blank or ambiguous, which shifts recovery risk and may void coverage.
  • Using non‑authorized signers whose signatures are later challenged, delaying enforcement and payment.
  • Failing to set claim deadlines, producing missed opportunities to recover losses from carriers or insurers.

Risks and Consequences of an Incorrect Agreement

Loss Allocation: Carrier may avoid liability if exceptions or notice requirements are not met
Insurance Gaps: Incomplete insurance clauses can leave cargo uninsured
Contract Voidance: Unauthorized signatures risk unenforceability
Delayed Recovery: Missing claim timelines hinder indemnity or subrogation
Regulatory Noncompliance: Failure to meet hazardous shipment rules can trigger fines
Billing Disputes: Unclear rate terms increase disputes and late payments

Comparing eSignature Pricing and Capabilities

Basic pricing and feature availability for common eSignature vendors. signNow appears first as the platform option in this comparison.

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 Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Examples of Digital Contract Use

Organizations across industries use digital signing to speed contract flow, reduce paperwork, and preserve audit evidence.

Optica Ventures LLC

Optica streamlined document execution for clients and back-office teams to reduce turnaround.

  • They emphasized ease of use and customer accessibility.
  • The COO said the interface is simple and easy-to-use for the team and customers, helping them complete agreements without in-person meetings.

Tech Data

Tech Data centralized signing to accelerate revenue recognition and customer response.

  • The change improved internal and external service speed.
  • The CEO reported that the solution improved customer service and increased speed to revenue while maintaining compliance.

Common Questions About Using This Agreement

Answers to frequently asked questions about execution, enforceability, notarization, and amendments for Shipping Services Agreements.


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