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Subhaul Transportation Agreement

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SUBHAUL TRANSPORTATION AGREEMENT

This Subhaul Transportation Agreement (the Agreement) is made and entered into as of by and between Carrier Name: , MC/DOT/Authority No.: , with principal place of business at (Carrier), and Subhauler Name: , MC/DOT/Authority No.: , with principal place of business at (Subhauler).

Recitals

WHEREAS, Carrier is engaged in the business of arranging and providing transportation and desires to engage Subhauler to perform transportation services for certain shipments tendered by or through Carrier on the terms and conditions set forth herein;

WHEREAS, Subhauler represents that it possesses the authority, equipment, insurance and qualifications necessary to perform the transportation services contemplated by this Agreement and is willing to provide such services as an independent contractor under the terms set forth below; and

WHEREAS, the parties desire to set forth their rights and obligations with respect to the carriage of freight and related services.

Now, Therefore

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Definitions

1.1 "Agreement" means this Subhaul Transportation Agreement and any incorporated schedules or rate confirmations. "Shipment" means each load or piece of freight tendered to Subhauler by Carrier. "Equipment" means the vehicle(s) and trailer(s) provided by Subhauler for performance. "Charges" means the amounts payable to Subhauler for transportation services as set forth in a Rate Confirmation.

2. Services and Performance

2.1 Subhauler shall provide carriage of shipments tendered by Carrier in a timely, safe and lawful manner, using properly registered and maintained Equipment, and shall comply with all applicable federal, state and local laws, rules and regulations, including but not limited to safety regulations, hazardous materials rules (if applicable) and driver qualification regulations.

2.2 Subhauler shall provide drivers who are properly licensed and qualified, shall maintain accurate records relating to each Shipment and shall permit Carrier or Carrier's designated representative to audit records upon reasonable notice to verify compliance with this Agreement.

3. Rates, Payment and Invoicing

3.1 The compensation payable to Subhauler for each Shipment shall be as specified in the Carrier-issued Rate Confirmation or written addendum. Unless otherwise agreed in writing, Carrier will pay Subhauler within days after Carrier's receipt of a conforming invoice and all required delivery receipts and documentation.

3.2 Subhauler's invoices must reference Carrier's load number, the date of pickup and delivery, Trip Bill of Lading, and any accessorial charges. Carrier may withhold payment for amounts disputed in good faith until resolution. Unpaid amounts not disputed in good faith shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

4. Accessorial Charges

4.1 Accessorial services (including detention, layover, reconsignment, storage and special equipment) shall be compensated only if pre-authorized in writing by Carrier. Subhauler shall document and substantiate any claimed accessorial charges.

5. Insurance and Indemnity

5.1 Subhauler shall, at its sole expense, maintain and keep in full force automobile liability insurance, cargo insurance and other required coverages in amounts not less than those specified by Carrier in writing. Subhauler shall furnish certificates of insurance evidencing such coverage upon request and shall notify Carrier of any material change, cancellation or nonrenewal of coverage not less than thirty (30) days prior to such change.

5.2 Subhauler shall defend, indemnify and hold Carrier, its affiliates and their officers, directors and employees harmless from and against any and all claims, losses, liabilities, damages, fines, penalties, costs and expenses (including reasonable attorneys' fees) arising out of or relating to Subhauler's performance, negligence, willful misconduct, breach of this Agreement, violation of law, or loss or damage to cargo while in Subhauler's possession, except to the extent directly caused by Carrier's gross negligence or willful misconduct.

6. Liability for Loss or Damage

6.1 Subhauler shall be liable for and shall pay Carrier for loss, shortage, damage or delay to cargo caused by Subhauler's acts or omissions, subject to any limits of liability expressly agreed in a Rate Confirmation. Subhauler shall cooperate with Carrier in investigating and defending any cargo claim.

7. Compliance with Laws and Permits

7.1 Subhauler shall comply with all applicable federal, state and local statutes, regulations and ordinances, including but not limited to motor carrier, customs, hazardous materials and environmental laws. Subhauler shall obtain and maintain all permits, registrations and authorizations necessary for lawful performance.

8. Independent Contractor Relationship

8.1 Subhauler is an independent contractor and not an employee, agent or partner of Carrier for any purpose. Subhauler is solely responsible for payment of all wages, taxes, benefits and other compensation to its employees and drivers. Subhauler shall not hold itself out as having authority to bind Carrier.

9. Subcontracting and Assignment

9.1 Subhauler shall not further subcontract or assign performance of any Shipment without Carrier's prior written consent, which consent may be withheld in Carrier's sole discretion. Any permitted subcontracting shall not relieve Subhauler of its obligations under this Agreement.

10. Records; Audit

10.1 Subhauler shall retain all records relating to each Shipment (including bills of lading, proof of delivery, delivery receipts, driver logs and payroll records) for a period of at least three (3) years and shall permit Carrier or its designee to inspect and copy such records during normal business hours upon reasonable notice.

11. Confidentiality

11.1 Each party agrees to keep confidential all non-public business information disclosed by the other party in connection with this Agreement and to use such information solely for the purposes of performing under this Agreement. Confidential information does not include information that is or becomes generally known to the public through no fault of the receiving party or is required to be disclosed by law.

12. Force Majeure

12.1 Neither party shall be liable for delays or failures in performance resulting from acts beyond its reasonable control, including but not limited to acts of God, flood, earthquake, war, terrorism, labor disputes, government actions, epidemics or pandemics, or shortages of equipment or fuel; provided that the delayed party provides prompt notice and uses commercially reasonable efforts to resume performance.

13. Term and Termination

13.1 This Agreement shall commence on the Effective Date and continue until terminated by either party upon thirty (30) days' prior written notice. Either party may terminate immediately for cause if the other party breaches a material obligation and fails to cure within ten (10) days after written notice, or if either party's authority to operate is suspended, revoked or materially limited.

14. Notices

14.1 All notices required or permitted under this Agreement shall be in writing and delivered by hand, overnight courier, or certified mail to the addresses set forth above or to such other address as a party may designate by written notice. Notices shall be effective upon receipt.

15. Amendments; Waiver

15.1 No amendment or modification of this Agreement shall be binding unless in a writing signed by authorized representatives of both parties. Failure to enforce any provision shall not constitute a waiver of that or any other provision.

16. Governing Law; Dispute Resolution

16.1 This Agreement shall be governed by and construed in accordance with the laws of the state identified below without regard to its conflicts of law principles. Any dispute arising under or relating to this Agreement shall be subject to the exclusive jurisdiction and venue of the state and federal courts located in that state unless the parties mutually agree otherwise in writing.

17. Entire Agreement; Severability

17.1 This Agreement, together with any incorporated Rate Confirmations and attachments, constitutes the entire agreement between the parties relating to the subject matter hereof and supersedes all prior and contemporaneous agreements, representations and understandings. If any provision of this Agreement is held invalid or unenforceable, such provision shall be reformed to the minimum extent necessary and the remaining provisions shall continue in full force and effect.

18. Counterparts

18.1 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures delivered by electronic means shall be valid and binding.

Additional Provisions

Carrier

Printed Name:

By:

Date:

Subhauler

Printed Name:

By:

Date:

Enter text✕

What a Subhaul Transportation Agreement Is and When It Matters

A Subhaul Transportation Agreement is a written contract that assigns specific trucking or freight movement tasks from a primary carrier or broker to a subcontract carrier (the subhauler). It defines scope of services, pick-up and delivery obligations, payment rates and terms, insurance and liability limits, cargo handling standards, required permits and regulatory compliance, and dispute-resolution procedures. For parties managing freight networks, the agreement clarifies operational responsibilities, reduces ambiguity during shipments, and provides the contractual record needed for claims, audits, and regulatory reviews. Electronic execution and audit trails are commonly used for efficient signature capture and recordkeeping.

Why a Written Subhaul Agreement Is Important

A clear subhaul agreement allocates risk, secures insurance coverage, sets service expectations, and documents payment and indemnity terms so carriers and shippers can resolve operational disputes and insurance claims without protracted litigation.

Why a Written Subhaul Agreement Is Important

Who Commonly Completes and Signs a Subhaul Transportation Agreement

Each signer should have authority to bind their company and confirm insurance, safety ratings, and regulatory compliance before signing.

  • Carrier operations and dispatch teams who assign loads and verify insurance and compliance.
  • Freight brokers and 3PL contracting parties arranging temporary or project-based haulage services.
  • Independent owner-operators or small carriers accepting subcontracted loads under rate schedules.

Representative Signatories and Their Responsibilities

Carrier Operations Manager

Responsible for approving subcontractors, confirming insurance certificates and MC authority, assigning loads, and ensuring the subhauler meets route, equipment, and cargo-handling requirements under the agreement. Often maintains operational records for audits and claims.

General Counsel / Contracts

Reviews indemnity, limitation of liability, and compliance clauses; advises on governing law and dispute resolution; approves signature authority thresholds and termination for cause provisions to reduce legal and financial exposure.

Essential Data Fields to Collect in the Agreement

Full legal names: Exact company names
MC/DOT numbers: Operating authority
Insurance details: Policy limits listed
Scope of services: Routes and cargo
Compensation terms: Rate and payment
Effective dates: Start and end

Primary Risks If the Agreement Is Incomplete or Incorrect

Liability gaps: Uninsured exposure
Payment disputes: Late or withheld pay
Regulatory noncompliance: Fines or sanctions
Claim denial: Insurer rejects claim
Operational delays: Missed pickups/deliveries
Contract unenforceable: Signature or authority issues

Common Preparation Mistakes to Avoid

  • Using informal emails or text messages as the sole record rather than a signed agreement makes liability and payment disputes harder to resolve in claims or court.
  • Failing to verify current insurance certificates and expiration dates can result in uncovered losses if a subhauler’s policy lapses during a shipment.
  • Leaving payment terms vague — for example, omitting net days or disputed-invoice procedures — often triggers late payments and strained carrier relationships.
  • Overlooking regulatory details such as hazardous materials endorsements, weight-permit requirements, or cross-border customs rules can cause fines and cargo holds.

Real-World Scenarios Showing How Subhaul Agreements Are Used

Below are two anonymized examples that show practical outcomes when a subhaul agreement is used and when it is missing.

Case Study 1

A regional carrier assigned a refrigerated load to an unaffiliated subhauler without confirming temperature-monitoring obligations.

  • The load spoiled mid-transit.
  • With a signed agreement that spelled out cargo-temperature responsibilities and insurance limits, the primary carrier had clear recourse and an insurer accepted the claim, reducing dispute time and loss severity.

Case Study 2

A broker engaged multiple subcontractors for a tight delivery window but used inconsistent rate confirmations.

  • Drivers refused partial loads.
  • A template subhaul agreement with uniform rate schedules, fuel surcharge mechanics, and defined layover compensation prevented payment disputes and improved acceptance rates across carriers.

Step-by-Step: Completing a Subhaul Transportation Agreement

Follow these core steps when preparing and executing the agreement to ensure operational clarity and legal enforceability.

  • 01
    Prepare details: Collect parties, MC/DOT, insurance, and service scope.
  • 02
    Set payment terms: Specify rates, invoicing, and dispute process.
  • 03
    Confirm compliance: Verify permits, endorsements, and safety ratings.
  • 04
    Sign and retain: Obtain authorized signatures and save records.

Typical Routing and Execution Workflow

A simple electronic workflow speeds approvals while preserving chain-of-custody and audit trails for each executed agreement.

  • Draft: Sender uploads and populates the agreement.
  • Review: Counterparty reviews and requests edits.
  • Authorize: Authorized signers apply signatures.
  • Archive: Signed copy and audit trail are stored.

Core Clauses That Belong in a Professional Subhaul Agreement

Every agreement should include clear operational, financial, insurance, and legal clauses so responsibilities and remedies are understood before a shipment begins.

Parties and authority

Identify legal names, state of formation, and confirm that the signer has authority to bind the company under the agreement.

Scope of work

Describe origin/destination, transit windows, equipment type, handling instructions, and special cargo requirements such as refrigeration or hazmat endorsements.

Rates and payments

Specify base rates, accessorial charges, invoicing frequency, payment terms, dispute process, and late-payment remedies or interest.

Insurance and certificates

State minimum insurance limits, required endorsements, certificate-holder naming, and that active ACORD certificates must be provided before first dispatch.

Indemnity and liability

Allocate liability for loss, damage, and third-party claims; define any cap on damages and responsibilities for cargo loss.

Termination and remedies

Include termination for cause, cure periods, and post-termination obligations such as final invoicing and dispute escalation procedures.

Supporting Elements, Records, and Signature Details

Include standard attachments and signature metadata so the agreement is operationally actionable and auditable.

Attachments

Attach rate schedules, equipment addenda, nondisclosure clauses, route restrictions, and any required permits or hazardous-materials endorsements as exhibits to avoid ambiguity.

Certificates

Require current ACORD insurance certificates naming the contracting party and specifying policy numbers, limits, and effective dates to validate coverage.

Signature metadata

Capture signer name, title, company, timestamp, IP address, and audit trail entries for each electronic signature to support enforceability and claims.

Record retention

Define where signed copies are stored, who has access, and retention duration for audit and claims purposes to comply with internal and external requirements.

Recommended Online Workflow Settings for eSigning

Configure your digital signing workflow to match operational checks and authentication needs before sending an agreement to a subhauler.

Field Configuration
Signature authentication Email link with optional SMS code
Required attachments Insurance certificates and W-9 upload
Role order Sequential signing: broker → carrier → subhauler
Audit capture Enable IP, timestamp, and event history

Digital Signing and Distribution Requirements

Ensure the chosen provider can store signed copies, provide tamper-evident proofs of signing, and meet any industry-specific compliance such as HIPAA if handling protected health information.

  • Document formats: PDF and DOCX accepted
  • Integrations: Connects to NetSuite and Salesforce
  • Compliance: Supports ESIGN and UETA

Key Timing Elements and Typical Deadlines

Track these dates to ensure obligations align with coverage, payment, and operational needs.

Effective date and term:

Enter start date and automatic renewal terms if applicable.

Insurance effective date:

Insurance must be active on or before effective date.

Invoice submission window:

Specify days to invoice following delivery.

Claims notice period:

Require prompt notice, commonly within 30 days.

Termination notice period:

State required notice such as 10–30 days.

Frequently Asked Questions About Subhaul Agreements and eSigning

Answers to frequent questions about authority, eSignature validity, notarization, modifications, and recordkeeping for subhaul contracts.


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Comparing eSignature Vendors for Subhaul Agreement Workflows

Basic pricing and feature differences help select a platform for executing and managing Subhaul Transportation Agreements at scale.

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 (premium tier) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
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