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Trucking Agreement

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TRUCKING AGREEMENT

This Trucking Agreement (the "Agreement") is entered into on by and between:

Carrier Name:   Carrier Address:

Shipper Name:   Shipper Address:

RECITALS

WHEREAS, Carrier is duly licensed and insured to provide motor carrier transportation services and has the personnel, equipment and authority to transport freight by motor vehicle; and

WHEREAS, Shipper requires transportation and related services for certain shipments of cargo and desires to engage Carrier to perform such services under the terms set forth in this Agreement; and

WHEREAS, the parties desire to establish the terms and conditions under which Carrier will provide transportation services to Shipper.

SCOPE OF WORK

Carrier shall furnish all labor, supervision, fuel, equipment, drivers, permits, and transportation services required to perform the shipments described above in a safe, lawful and workmanlike manner consistent with industry standards and applicable law.

PAYMENT TERMS

All invoices shall include load number, pickup and delivery dates, and any accessorial charges. Unless otherwise agreed in writing, payment shall be made in United States dollars. If Carrier disputes an invoiced charge, Carrier must provide written notice of the dispute within ten (10) days of receipt; undisputed amounts remain payable in accordance with the payment schedule.

TERM AND TERMINATION

Commencement Date:   Termination Date:

Either party may terminate this Agreement for material breach if the breaching party fails to cure within fifteen (15) days after receipt of written notice specifying the breach. Termination shall not relieve either party of obligations accrued prior to termination.

INSURANCE; INDEMNIFICATION; LIABILITY

Carrier shall maintain, at its expense, commercial auto liability, cargo, and workers' compensation insurance in minimum limits customary in the industry and as required by law. Carrier shall provide certificates of insurance upon request. Carrier shall indemnify, defend and hold harmless Shipper from and against any claims, liabilities or expenses arising from Carrier's negligent acts or omissions, except to the extent caused by Shipper's negligence or willful misconduct.

Notwithstanding the foregoing, unless otherwise agreed in writing, Carrier's liability for loss or damage to cargo shall be limited to the lesser of replacement cost or $0.50 per pound per article, subject to applicable statutory limits.

COMPLIANCE WITH LAW

Carrier represents and warrants that it shall at all times comply with all federal, state and local laws, rules and regulations applicable to the operation of motor carriers, including licensing, hours-of-service, weight and safety regulations. Carrier shall be responsible for all fines and penalties arising from Carrier's noncompliance.

CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any non-public business information disclosed by the other party in connection with this Agreement, including pricing, routing, customer lists and commercial terms, except as required by law or necessary to perform obligations under this Agreement. Confidential information shall not include information that is or becomes publicly available through no breach of this Agreement.

RELATIONSHIP OF PARTIES

Carrier is an independent contractor and not an employee, agent or partner of Shipper. Carrier shall be solely responsible for payment of Carrier's taxes and all employment-related obligations for Carrier's employees and contractors.

Corporation    LLC    Individual/Sole Proprietor

GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the state identified above, without regard to its conflicts of law principles. Any dispute arising out of or relating to this Agreement shall be resolved by the state or federal courts located in the county of the governing law state, and the parties submit to the exclusive jurisdiction of those courts.

ENTIRE AGREEMENT

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

NOTICES

Carrier - Printed Name:

By:

Date:

Shipper - Printed Name:

By:

Date:

Enter text✕

What a Trucking Agreement Is and When It’s Used

A Trucking Agreement is a written contract between a carrier (motor carrier or driver) and a shipper, broker, or consignee that defines the transportation services to be provided, payment terms, liability allocation, insurance requirements, and claims procedures. It sets operational expectations, specifying routes, equipment, load types, pick-up and delivery windows, and responsibilities for loading, unloading, and cargo care. For interstate commerce, these agreements also intersect with regulatory obligations under FMCSA, customs rules, and applicable state transportation laws and licensing requirements.

Why a Clear Trucking Agreement Matters

A precise Trucking Agreement reduces disputes, clarifies payment and liability, streamlines claims handling, and documents compliance obligations. Clear terms protect both carriers and shippers by assigning risk, specifying required insurance, and establishing performance measurements and remedies for breach.

Why a Clear Trucking Agreement Matters

Who Commonly Prepares and Signs These Agreements

Multiple parties use Trucking Agreements to set expectations and manage risk across the supply chain.

  • Carrier owners and fleet managers who must document service levels, equipment, and insurance obligations.
  • Independent owner-operators contracting with brokers or shippers for recurring or single-trip services.
  • Shippers, brokers, and logistics managers who need clear billing, routing, and cargo-care terms.

Use the agreement to align operational, commercial, and compliance responsibilities before cargo moves.

Core Sections to Include in a Professional Trucking Agreement

A comprehensive Trucking Agreement combines operational detail, commercial terms, and legal protections to reduce ambiguity and exposure.

Parties & Definitions

Identify carrier, shipper, broker, and defined terms used throughout the agreement for clarity and consistent interpretation.

Scope of Services

Describe allowed equipment, routes, pickup/delivery windows, detention and layover rules, and any temperature or handling requirements.

Rates & Payment

Specify freight rates, accessorial charges, payment terms, invoicing procedures, and consequences for late payment.

Term & Termination

State effective date, contract length, renewal, and conditions permitting immediate termination for breach.

Insurance & Indemnity

Define liability limits, cargo insurance requirements, certificate of insurance delivery, and indemnification scope.

Claims & Liability

Prescribe claim notice times, evidence requirements, dispute resolution, and caps on consequential damages.

Step-by-step: Completing a Trucking Agreement

Follow these steps to prepare, review, and finalize a clear, enforceable agreement.

  • 01
    Gather documents: Collect MC, USDOT, insurance certificates, and billing details.
  • 02
    Draft terms: Define scope, rates, insurance, and claims procedures.
  • 03
    Review internally: Legal and operations should confirm language and feasibility.
  • 04
    Execute: Obtain authorized signatures and distribute fully executed copies.

Configuring an Online Signing Workflow

Set up your digital workflow to collect required data, run authentication, and store signed files securely.

Field Configuration
Authentication Email link or SMS code; use stronger identity when high risk.
Conditional Fields Show insurance fields only if carrier carries specified cargo types.
Notifications Email on completion and missed signature reminders.
Template Reuse Save a version with placeholders for recurring lanes and clients.

Where to Send, File, and Store the Signed Agreement

A consistent routing and storage process reduces retrieval time and ensures regulatory traceability.

  • Upload Originals: Upload the executed agreement to your contract repository.
  • Distribute Copies: Send fully signed PDF to carrier and shipper email addresses.
  • Store Securely: Retain in encrypted document storage with audit trail.
  • Link to ERP: Attach the contract record to invoices or shipment POs.

Digital Signing and System Integrations to Consider

Choose a platform that supports audit trails, reasonable signer authentication, and integration with your systems.

  • CRM & ERP: Salesforce, NetSuite, Microsoft 365 integrations
  • Cloud Storage: Box, Google Drive, Egnyte compatibility
  • Document Formats: PDF and DOCX import/export supported

Integrations reduce manual data entry and store signed Trucking Agreements alongside billing and shipment records for easier compliance and auditing.

Common Timelines and Deadline Terms to Include

Explicit timelines reduce disputes. Include clear due dates for payment, claims, insurance certificates, and renewal notices.

Effective Date:

Date when obligations begin, entered as MM/DD/YYYY

Payment Due:

Commonly Net 30 days from invoice receipt

Cargo Claim Notice:

Require written notice within 7–14 days of delivery

Insurance Certificate Renewal:

Certificates due 30 days before expiration

Annual Review:

Contract terms reviewed yearly for rate and compliance updates

Frequent Errors to Avoid When Preparing the Agreement

  • Using an informal carrier name instead of the legal entity can invalidate certificates and hinder recovery.
  • Failing to specify cargo types, temperature control, or hazmat handling creates costly disputes after loss.
  • Vague payment language or undefined accessorial fees leads to late payments and reconciliations.
  • Omitting required insurance limits or evidence deadlines exposes the shipper to uninsured loss recovery risk.

Key Legal and Financial Risks from an Incorrect Agreement

Breach Exposure: Damages and lost revenue liability
Cargo Loss Liability: Full replacement or repair costs
Regulatory Fines: FMCSA citations or licensing penalties
Insurance Gaps: Claims denied for insufficient coverage
Tax Classification: Misclassification affects withholding
Contractual Indemnity: Broad indemnities can shift large losses

Representative Scenarios Where a Trucking Agreement Prevents Disputes

Two short scenarios illustrate typical contractual friction and how clear terms resolve it.

Scenario A

A shipper assigned a refrigerated load without temperature specs, causing spoilage.

  • The agreement required temperature ranges and monitoring.
  • Clear terms and recorded temperature logs enabled a defined claim resolution and limited recovery to the carrier’s insurance policy.

Scenario B

An owner-operator disputed a broker deduction for detention hours.

  • The contract included detention rates and proof-of-waiting.
  • Enforced contract terms produced a prompt settlement and avoided prolonged arbitration costs.

Who Is Authorized to Sign

Carrier Representative

An authorized officer or designated agent (e.g., COO or Operations Manager) signs for the carrier. Verify corporate resolution or power of attorney where applicable to confirm authority to bind the carrier.

Shipper / Broker Signatory

A person with procurement or contract authority (e.g., Logistics Director or Contract Manager) should sign. For government or corporate accounts, confirm delegated signing authority and purchase order alignment.

Essential Information to Collect in the Agreement

Legal Entity: Exact business name
Registration IDs: MC and USDOT numbers
Insurance Limits: Liability and cargo limits
Cargo Details: Commodity and special handling
Payment Terms: Net days and remittance address
Signatures: Authorized signatory and date

eSignature Pricing and Feature Comparison for Executing Agreements

Comparing common vendor features and starting prices for electronic signature platforms used to execute Trucking Agreements.

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 No No
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 Trucking Agreements and Electronic Execution

Answers to common legal and operational questions when drafting or e-signing Trucking Agreements.


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