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Trucking Service Agreement

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Trucking Service Agreement

This Trucking Service Agreement (the "Agreement") is entered into as of the Effective Date set forth below by and between:

Carrier Name:

Client Name:

RECITALS

WHEREAS, Carrier is duly licensed and engaged in the business of transporting goods by motor vehicle and possesses the equipment, personnel, and authority necessary to provide transportation services; and

WHEREAS, Client requires transportation and logistics services for the carriage of freight as described herein and desires to engage Carrier on the terms and conditions set forth in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. SCOPE OF WORK

Carrier shall provide transportation services for Client's freight as described below. Carrier shall perform pickups, deliveries, and related transportation services in a competent, timely, and professional manner in accordance with applicable law and industry standards. Carrier shall use appropriately insured and maintained equipment and qualified drivers.

2. PAYMENT TERMS

All payments shall be made in lawful currency of the United States. Client shall remit undisputed amounts in accordance with the Payment Schedule. Disputed amounts shall be raised in writing within ten (10) business days of receipt of invoice; undisputed amounts shall remain payable when due.

3. TERM AND TERMINATION

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated in accordance with this Section.

Either party may terminate this Agreement for material breach if the breaching party fails to cure such breach within the notice period specified above. Either party may also terminate immediately for insolvency, bankruptcy, revocation of required authority, or where continuation would violate applicable law.

4. CONFIDENTIALITY

"Confidential Information" means any non-public business, technical, pricing, operational or financial information disclosed by one party to the other in connection with this Agreement. Each party shall: (a) hold Confidential Information in strict confidence; (b) not disclose Confidential Information to any third party except as permitted herein; and (c) use Confidential Information solely for performance of this Agreement. Confidential Information does not include information that is or becomes publicly available through no fault of the receiving party, is rightfully received without restriction from a third party, or is independently developed without use of the disclosing party's Confidential Information.

5. INSURANCE AND INDEMNITY

Carrier shall maintain commercial automobile liability insurance, cargo insurance, and workers' compensation as required by applicable law and adequate to cover its obligations hereunder. Carrier shall defend, indemnify and hold harmless Client and its affiliates from and against all claims, losses, liabilities, and expenses arising out of Carrier's negligence, willful misconduct, or breach of this Agreement, including but not limited to loss or damage to cargo, bodily injury, and property damage, except to the extent such loss is caused solely by Client's negligence.

6. LIMITATION OF LIABILITY

Except for Carrier's indemnification obligations and claims arising from gross negligence or willful misconduct, neither party shall be liable to the other for any consequential, incidental, special, or punitive damages, including lost profits. Carrier's liability for loss or damage to cargo shall not exceed the lesser of actual value of the cargo or the limits provided in Carrier's cargo insurance policy, unless a higher value is declared and agreed in writing and appropriate additional charges are paid.

7. COMPLIANCE WITH LAW

Carrier represents and warrants that it holds all necessary licenses, permits, registrations, and authority to provide the services under this Agreement and shall at all times comply with applicable federal, state and local laws, regulations and safety requirements.

8. NOTICES

All notices required or permitted hereunder shall be in writing and shall be deemed given when delivered personally, sent by certified mail return receipt requested, or sent by nationally recognized overnight courier to the addresses set forth above or to such other address as either party may designate by notice to the other.

9. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its principles of conflicts of law. Any legal action arising out of or relating to this Agreement shall be brought exclusively in the state or federal courts located within that State, and the parties hereby consent to the jurisdiction and venue of such courts.

10. ENTIRE AGREEMENT

This Agreement, including all schedules, rate confirmations and written amendments signed by the parties, constitutes the entire agreement between Carrier and Client concerning the subject matter hereof and supersedes all prior negotiations, representations, and agreements, whether written or oral. No modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by an authorized representative of each party.

11. MISCELLANEOUS

The relationship of the parties is that of independent contractors. Nothing in this Agreement creates an agency, partnership, joint venture, or employment relationship between the parties. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions shall remain in full force and effect. Headings are for convenience only and do not affect interpretation.

SIGNATURES

Carrier Printed Name:

By:

Date:

Client Printed Name:

By:

Date:

Enter text✕

What a Trucking Service Agreement Covers

A Trucking Service Agreement is a written contract between a carrier and a shipper (or broker) that defines transportation services, routes, cargo types, compensation, and performance obligations. Typical provisions cover scope of work, load acceptance, scheduling, detention and accessorial charges, insurance and liability limits, claims and indemnification, payment terms, and contract duration. The document reduces ambiguity by assigning responsibilities for fuel surcharges, equipment use, compliance with DOT regulations, and procedures for damage or loss claims.

Why a Clear Agreement Matters for Carriers and Shippers

A well-drafted Trucking Service Agreement allocates commercial risk, clarifies billing and claims procedures, and supports regulatory compliance for interstate transportation under DOT rules. Clear terms reduce disputes, speed invoicing, and document insurance obligations.

Why a Clear Agreement Matters for Carriers and Shippers

Who Typically Prepares and Signs These Agreements

Various roles in the logistics chain use Trucking Service Agreements to set expectations and preserve legal rights.

  • Carrier operations managers and safety directors responsible for insurance, equipment and driver compliance.
  • Shipper logistics coordinators and procurement teams that set rates, pickup windows and cargo requirements.
  • Freight brokers and third-party logistics providers who mediate rates and routing and require clear indemnity and billing terms.

Each signatory should confirm corporate authority, insurance certificates, and applicable regulatory identifiers before signing.

Core Clauses to Include in a Professional Trucking Service Agreement

Include concise clauses that address the operational, commercial, and legal elements carriers and shippers rely on. Well-structured agreements improve enforceability and streamline claims handling.

Parties

Full legal names and entity types for shipper, carrier, and any broker; include USDOT and MC numbers where applicable.

Scope of Work

Describe accepted cargo types, pickup/delivery obligations, routing authority, transloading, and special handling requirements.

Rates & Payment

List base rates, accessorial charges, detention rules, invoicing schedule, late fees, and remittance instructions.

Liability & Insurance

State cargo liability limits, required insurance endorsements, certificates of insurance, and notice procedures for claims.

Claims & Indemnity

Set timelines for loss/damage claims, documentation requirements, salvage rights, and indemnification triggers.

Termination

Outline notice periods, breach remedies, cure opportunities, and post-termination obligations like outstanding payments and cargo disposition.

Step-by-Step: Completing a Trucking Service Agreement

Follow a consistent order when preparing and executing the agreement to avoid common omissions and to preserve enforceability.

  • 01
    Prepare Parties: Confirm legal names, addresses, and USDOT/MC information.
  • 02
    Define Services: Specify cargo, routes, delivery windows, and handling requirements.
  • 03
    Set Payment Terms: Include rates, invoicing schedule, and accepted payment methods.
  • 04
    Obtain Signatures: Have authorized reps sign and date; include witness or notary if required.

How to Configure an Online Signing Workflow

Set up fields and routing before sending to ensure each party receives the correct sequence and authentication level.

Field Configuration
Signature Field Assign to specific signer, require date stamp.
Initials Field Place on each page that needs initials; make required.
Routing Order Set signer sequence or parallel signing as needed.
Authentication Enable email verification or SMS code for higher assurance.

Where to Send or File the Signed Agreement

Decide routing based on internal records, billing, and claims needs—retain copies with both parties and any brokers.

  • Carrier Records: Store executed copy in carrier contract folder for compliance and audits.
  • Shipper Files: Place executed contract with procurement and accounts payable.
  • Broker / 3PL: Provide broker copies when acting as intermediary and for billing reconciliation.
  • Insurance Provider: Send insurance endorsements or statements of coverage when required by contract.

Digital Signing and Integration Considerations

Choose a signing platform that supports audit trails, conditional fields, and the integrations your operations use.

  • Integrations: Salesforce, NetSuite, Google Workspace, Box, and Procore supported for document flows.
  • File Types: Accepts PDF, DOCX, HTML and preserves audit history.
  • Authentication: Options include email, SMS codes, KBA, and SSO depending on platform tier.

Ensure the chosen solution complies with ESIGN and UETA and supports your required authentication and retention policies.

Timelines, Deadlines, and Typical Processing Expectations

Key timing items include effective date, invoicing windows, claim notice periods, and cure or termination notice periods specified in the agreement.

Effective Date:

Starts when all parties sign and date the agreement.

Invoice Payment:

Common terms are Net 30 or Net 45 from invoice date.

Damage Claims:

Carrier often requires notice within 7–14 days; follow contract terms.

Cure Period:

Contracts commonly allow 10–30 days to remedy breaches.

Contract Renewal:

Automatic renewal clauses should state notice periods for non-renewal.

Key Milestones from Negotiation to Record Retention

Track the sequential stages so obligations and deadlines are visible to procurement, operations, and legal teams.

01

Negotiation

Agree rates, service levels, and insurance terms before signature.

02

Execution

All authorized parties sign and record the effective date.

03

Operational Start

Begin pickups and deliveries under contract terms and billing procedures.

04

Claims Window

File any cargo or damage claims within the contract's stated timeframe.

Common Mistakes When Preparing a Trucking Service Agreement

  • Leaving insurance limits unspecified or inconsistent with certificates of insurance.
  • Using vague rate language that omits accessorials and detention charges.
  • Failing to include USDOT/MC numbers and carrier legal entity names.
  • Not defining claims procedures, documentation requirements, and deadlines.

Penalties and Risks of an Incorrect or Incomplete Agreement

Financial Exposure: Higher out-of-pocket liability for cargo loss or damage.
Regulatory Risk: Noncompliance with FMCSA requirements may trigger fines.
Payment Disputes: Unclear invoicing terms can delay payment and increase disputes.
Insurance Gaps: Missing endorsements may void coverage on claims.
Operational Disruption: Ambiguous routing or load authority can delay deliveries.
Legal Costs: Increased attorney fees and litigation if terms are unenforceable.

Who Has Authority to Sign the Agreement

Authorized Company Representative

Typically an officer, director, or delegated manager with explicit signing authority. Confirm via corporate resolution or delegated authority document to avoid challenges to enforceability.

Logistics or Procurement Manager

Operational signers often include procurement or logistics managers who handle day-to-day execution; ensure their signing scope is documented and within company policy.

How to Save and Exchange the Signed Agreement

Choose formats and storage methods that preserve the audit trail and permit later validation for claims or audits.

Standard Formats

Save as PDF/A for preservation; DOCX for editable drafts; signed PDF preserves appearance and is widely accepted.

Audit Trail

Ensure the saved file includes a certificate of completion or metadata capturing signer, IP, and timestamps.

Version Control

Keep executed originals and a controlled archive of prior drafts to avoid confusion over operative terms.

Cloud Storage

Use secure repositories with access controls such as Box, Google Drive, or an integrated ERP for retention.

Comparison: signNow and Alternative eSignature Providers

Overview of common plan features relevant to signing and storing Trucking Service Agreements. Pricing reflects published base rates and common plan differences.

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 by vendor Varies by vendor Varies by vendor Varies by vendor
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 Varies by plan Varies by plan Varies by plan

How to Update, Amend, or Revoke a Trucking Service Agreement

Follow documented steps for amendments and revocations to avoid uncertainty and ensure enforceability between parties.

01

Review Amendment Clause:

Check the contract for required notice, signature, and effective date procedures before proposing changes.
02

Draft Amendment:

Prepare a short amendment enumerating specific clause changes and attach to the original contract.
03

Obtain Signatures:

Have all original parties sign the amendment; use the same authorization level as the original signature.
04

Record Effective Date:

Specify when the amendment takes effect and update operational and billing systems.
05

Revocation Notice:

If terminating, follow contract notice requirements and preserve evidence of receipt.
06

Retain Copies:

Store signed amendments and revocation notices with the executed original for the retention period.

FAQs — Common Questions About Trucking Service Agreements

Answers to frequent questions about execution, enforceability, eSigning, and recordkeeping for Trucking Service Agreements.


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