{"id":348,"date":"2016-12-21T15:54:23","date_gmt":"2016-12-21T23:54:23","guid":{"rendered":"http:\/\/67.192.94.222\/blog\/?p=348"},"modified":"2016-12-21T15:54:23","modified_gmt":"2016-12-21T23:54:23","slug":"contracts-youll-need-as-a-freight-broker","status":"publish","type":"post","link":"https:\/\/www.shipmynt.com\/blog\/contracts-youll-need-as-a-freight-broker\/","title":{"rendered":"Contracts You\u2019ll Need as a Freight Broker"},"content":{"rendered":"<p>Almost every business requires some type of contract. Freight brokers are no exception \u2013 they\u2019re involved in a highly sensitive business, where paperwork becomes critical. Without the right contracts, you could be held liable for lost or damaged freight, trucker injuries, car accidents, and other incidents. Read on for more information on the contracts you\u2019ll need.<\/p>\n<h2>Carrier\/Broker Agreement<\/h2>\n<h2><\/h2>\n<p>Perhaps the most important contract is the carrier\/broker agreement. It applies to all dealings you have with a particular carrier, and also provides for changes, such as differences in rates. Before entering a carrier\/broker agreement, specify three important items:<\/p>\n<ul>\n<li>Valid motor licenses. Obtain all license numbers and check their validity.<\/li>\n<\/ul>\n<ul>\n<li>The carrier should be liable for any freight damage while in its possession. Liability agreements should also cover injuries to vehicles and equipment, as well as personal injuries.<\/li>\n<\/ul>\n<ul>\n<li>Shipping negotiations. These include what you will pay for each shipment, when the carrier receives payment, and what the carrier must provide before receiving payment.<\/li>\n<\/ul>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-480\" src=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage3_122116.jpg?resize=660%2C442&#038;ssl=1\" alt=\"\" width=\"660\" height=\"442\" \/><\/p>\n<h2>Bill of Lading<\/h2>\n<h2><\/h2>\n<p>A bill of lading contains information on each load\u2019s destination, size and nature, and any special handling requirements. Shippers and carriers work together to ensure bills of lading are accurate. The carrier signs the bill to acknowledge it has received the load described. All information on bills of lading must be accurate at all times; otherwise, the freight company owner and the carrier could be held liable.<\/p>\n<p>&nbsp;<\/p>\n<p>Always keep signed bills of lading in your files. Your carriers will send them to you for each load along with invoices. Keep bills and invoices together so you can access them if customers or shippers have questions later.<\/p>\n<h2>Invoices<\/h2>\n<h2><\/h2>\n<p>Invoices are an essential part of freight brokerage \u2013 and have their own requirements. For example, all invoices need accurate pickup and delivery dates. Each invoice details the commodity, pieces, and weight of a delivery, along with special fees or handling instructions. If a delivery exceeds weight limits, this will appear on the invoice along with any extra fees.<\/p>\n<p>&nbsp;<\/p>\n<p>Some deliveries require contract labor. Your invoice will tell you how much labor was used and how much your shipper charged for that labor. Additionally, your invoice will note whether your shipper sent a particular delivery \u201ccollect.\u201d If that\u2019s the case, you don\u2019t bill the shipper. Instead, the shipper gives you billing information and you bill a consignee.<\/p>\n<p>&nbsp;<\/p>\n<p><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-481\" src=\"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage2_122116.jpg?resize=660%2C439&#038;ssl=1\" alt=\"\" width=\"660\" height=\"439\" \/><\/p>\n<h2>Contract of Carriage<\/h2>\n<h2><\/h2>\n<p>This paperwork is different from a broker\/carrier contract because it is <a href=\"https:\/\/www.entrepreneur.com\/article\/237404\" target=\"_blank\">not a document<\/a>. It also isn\u2019t the same as a bill of lading, although many new freighters assume otherwise. A contract of carriage often covers elements not included in a bill of lading, such as exceptions to basic delivery rules and how to handle them. Contracts of carriage also can include tariff provisions, service descriptions, and pricing.<\/p>\n<p>&nbsp;<br \/>\nContracts of carriage ensure all parties involved follow state, federal, and other regulations. It also ensures freighters, shippers, and consignees follow a company\u2019s specific regulations. These contracts provide protection against disputes over liability, damaged freight, personal injury, and other incidents. Additionally, contracts of carriage keep everyone apprised of legal trade precedents.<\/p>\n<h2>Contract Labor Receipts<\/h2>\n<h2><\/h2>\n<p>As previously mentioned, sometimes a shipper will use contract labor. If your shipper is in charge of several vehicles of freight, it may need a team to unload the vehicles at their destination. In these cases, laborers provide receipts directly to the drivers. The drivers then send the contract labor receipts to you, the freight broker, for payment. If your shipper does not want to cover contract labor costs, you may need to absorb the expense. This might feel like a negative consequence, but it can help you maintain rapport with drivers and shippers while your company grows.<\/p>\n<h2>Broker Authority<\/h2>\n<h2><\/h2>\n<p>As a new freight broker, don\u2019t forget your own business license obligation. You should <a href=\"http:\/\/www.dat.com\/resources\/startup-guides\/broker-startup-guide\" target=\"_blank\">apply for broker authority<\/a> with the Federal Motor Carrier Safety Administration (FMCSA), a division of the U.S. Department of Transportation. There is an application fee, and processing takes 4-6 weeks. However, several reputable companies can guide you through this process.<\/p>\n<h2>Surety Bonds and Trust Funds<\/h2>\n<h2><\/h2>\n<p>Most companies, including freight brokers, need some form of surety bonds. These let shippers, drivers, and customers know you will complete deliveries on time and with no damage. They also ensure you have the cash or assets to cover monetary amounts if you cannot fulfill contracts. All freight brokers must carry at least a $75,000 surety bond or trust fund.<\/p>\n<p>&nbsp;<\/p>\n<p>Starting a new business of any kind, especially freight brokerage, is a long process. You may be tempted to cut corners, but never do so on paperwork. Your contracts will protect both your business and your customers, so it\u2019s crucial to keep them up-to-date.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Almost every business requires some type of contract. Freight brokers are no exception \u2013 they\u2019re involved in a highly sensitive business, where paperwork becomes critical. Without the right contracts, you could be held liable for lost or damaged freight, trucker injuries, car accidents, and other incidents. Read on for more information on the contracts you\u2019ll &hellip; <a href=\"https:\/\/www.shipmynt.com\/blog\/contracts-youll-need-as-a-freight-broker\/\" class=\"more-link\">Continue reading <span class=\"screen-reader-text\">Contracts You\u2019ll Need as a Freight Broker<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":349,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[6],"tags":[],"class_list":["post-348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage_122116.jpg?fit=900%2C601&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p7fVNJ-5C","jetpack-related-posts":[{"id":344,"url":"https:\/\/www.shipmynt.com\/blog\/pointing-fingers-cargo-loss-and-damage-claims-responsibility\/","url_meta":{"origin":348,"position":0},"title":"Pointing Fingers: Cargo Loss and Damage Claims Responsibility","author":"SHIPMYNT Customer Service","date":"December 14, 2016","format":false,"excerpt":"Cargo loss. Damage claims. Those are two phrases that no shipper, carrier, receiver, or freight broker ever wants to hear. Unfortunately, most companies will experience an issue like this at one point or another. It\u2019s best to take preventative measures, but everyone should also be prepared for a worst-case scenario.\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage3_121416.jpg?fit=900%2C601&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage3_121416.jpg?fit=900%2C601&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage3_121416.jpg?fit=900%2C601&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage3_121416.jpg?fit=900%2C601&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":320,"url":"https:\/\/www.shipmynt.com\/blog\/handling-transit-delays-tips-freight-broker\/","url_meta":{"origin":348,"position":1},"title":"Handling Transit Delays: Tips for the Freight Broker","author":"SHIPMYNT Customer Service","date":"November 9, 2016","format":false,"excerpt":"We live in a world of instant gratification\u2014one world where Americans are always searching for ways to make shopping faster than before. For example, you can now make purchases with your smartphone just by scanning your fingerprint. \u00a0 This instant checkout works well in many cases, but when it comes\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_110916.jpg?fit=900%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":354,"url":"https:\/\/www.shipmynt.com\/blog\/contracts-youll-need-as-an-owner-operator\/","url_meta":{"origin":348,"position":2},"title":"Contracts You\u2019ll Need As an Owner Operator","author":"SHIPMYNT Customer Service","date":"December 29, 2016","format":false,"excerpt":"The trucking industry is rife with contracts because it constantly deals with freight and people. However, as the owner and operator of a freight company, your contracts are different from those of your drivers, shippers, and consignees. As you start your own freight company, familiarize yourself with the unique contracts\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage2_122816.jpg?fit=900%2C601&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage2_122816.jpg?fit=900%2C601&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage2_122816.jpg?fit=900%2C601&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/12\/shipmynt_blogpostimage2_122816.jpg?fit=900%2C601&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":308,"url":"https:\/\/www.shipmynt.com\/blog\/freight-brokers-customer-service-and-lead-generation\/","url_meta":{"origin":348,"position":3},"title":"Freight Brokers, Customer Service, and Lead Generation","author":"SHIPMYNT Customer Service","date":"October 26, 2016","format":false,"excerpt":"Freight brokers are a vital part of our trucking industry. These experts serve as liaisons between carriers and customers, helping arrange deals that keep our commerce running smoothly. Building connections is the most important part of the job. It creates a steady web of services benefitting everyone involved. \u00a0 It\u2019s\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/10\/shipmynt_blogpostimage2_102616.jpg?fit=900%2C646&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/10\/shipmynt_blogpostimage2_102616.jpg?fit=900%2C646&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/10\/shipmynt_blogpostimage2_102616.jpg?fit=900%2C646&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/10\/shipmynt_blogpostimage2_102616.jpg?fit=900%2C646&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":262,"url":"https:\/\/www.shipmynt.com\/blog\/the-most-profitable-freight-lanes\/","url_meta":{"origin":348,"position":4},"title":"The Most Profitable Freight Lanes","author":"SHIPMYNT Customer Service","date":"September 6, 2016","format":false,"excerpt":"Creating a freight lane has the potential to be extremely profitable \u2013 as long as you consider the dynamics of what the freight is moving and when it should be moved. Freight lanes can come in a variety of forms \u2013 any of which can mean more money \u2013 and\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage3_090616.jpg?fit=900%2C600&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage3_090616.jpg?fit=900%2C600&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage3_090616.jpg?fit=900%2C600&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/09\/shipmynt_blogpostimage3_090616.jpg?fit=900%2C600&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":332,"url":"https:\/\/www.shipmynt.com\/blog\/diminishing-driver-detention\/","url_meta":{"origin":348,"position":5},"title":"Diminishing Driver Detention","author":"SHIPMYNT Customer Service","date":"November 23, 2016","format":false,"excerpt":"Truck drivers move freight to make money. When that process comes to a stop, everyone involved suffers. Driver detention leads to delivery delays, fees, and lost productivity for the driver due to safety requirements. The Driver Detention Problem Driver detention is when either the shipper or receiver holds a truck.\u2026","rel":"","context":"In &quot;News&quot;","block_context":{"text":"News","link":"https:\/\/www.shipmynt.com\/blog\/category\/news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_112216.jpg?fit=900%2C598&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_112216.jpg?fit=900%2C598&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_112216.jpg?fit=900%2C598&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.shipmynt.com\/blog\/wp-content\/uploads\/2016\/11\/shipmynt_blogpostimage3_112216.jpg?fit=900%2C598&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/comments?post=348"}],"version-history":[{"count":3,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/348\/revisions"}],"predecessor-version":[{"id":352,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/posts\/348\/revisions\/352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/media\/349"}],"wp:attachment":[{"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/media?parent=348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/categories?post=348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shipmynt.com\/blog\/wp-json\/wp\/v2\/tags?post=348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}