BROKER/SHIPPER TRANSPORTATION TERMS OF SERVICE
The following Terms of Service apply to all property broker services provided by Backhaulers LLC, having offices at 145 West Ostend Street, Suite 600, Baltimore, MD 21230 (“BROKER”) to its SHIPPER customers (“SHIPPER”), collectively referred to as the “PARTIES.”
RECITALS
A. BROKER is licensed as a Property Broker by the Federal Motor Carrier Safety Administration (FMCSA) in Docket Number [Insert Docket Number] and as a licensed broker, arranges for freight transportation. A copy of BROKER’s authority will be provided upon SHIPPER’s request.
B. SHIPPER, to satisfy some of its transportation needs, desires to utilize the services of BROKER to arrange transportation of SHIPPER’s freight.
NOW, THEREFORE, intending to be legally bound, BROKER and SHIPPER agree as follows:
1. SERVICE
Upon BROKER’s written acceptance of a tender of freight from SHIPPER, BROKER agrees to arrange for transportation of SHIPPER’s freight pursuant to these terms and in compliance with all federal, state, and local laws governing freight brokerage. BROKER’s responsibility is limited to arranging for, but not performing, transportation.
2. VOLUME AND SPECIFICATIONS
A. SHIPPER is not restricted from tendering freight to other brokers, freight forwarders, third-party logistics providers, or directly to motor carriers. Similarly, BROKER is not restricted from arranging transportation for other parties.
B. SHIPPER is responsible for:
- Providing written, timely, and accurate delivery specifications, including cargo dimensions, weight, temperature requirements, special handling instructions, and cargo value.
- Complying with all applicable laws related to SHIPPER and its freight.
- Ensuring proper securement of pre-loaded shipments.
- Employing security protocols to mitigate risks of cargo theft.
C. Rates provided by BROKER assume freight does not require special handling or conditions and that cargo value does not exceed $100,000, unless agreed otherwise in writing.
3. FREIGHT CARRIAGE
BROKER warrants it has entered or will enter into written contracts with carriers it engages. These contracts shall include:
A. Carrier compliance with all applicable federal, state, and local laws, including:
- Registration, licensing, and insurance requirements.
- Security and driver qualification regulations.
- Safe loading and securement of freight.
- Compliance with the Food Safety Modernization Act (21 U.S.C. § 2201 et seq.).
- Adherence to hazardous materials regulations, where applicable.
B. Carrier agreement to indemnify and hold harmless BROKER and SHIPPER from damages, claims, or losses arising from their services, including cargo loss, theft, delay, property damage, or personal injury.
C. Carrier liability for cargo loss or damage as determined by 49 USC §14706 (Carmack Amendment). Exclusions in carrier insurance do not absolve liability.
D. Minimum insurance coverage maintained by carriers, including:
- General Liability: $1,000,000
- Auto Liability: $1,000,000 ($5,000,000 for certain hazardous materials)
- Cargo Liability: $100,000
- Workers’ Compensation: As required by law
BROKER will verify carrier insurance coverage as defined above.
E. Prohibition against carrier re-brokering, assigning, or subcontracting shipments without prior written consent from BROKER.
F. Carrier compliance with California Air Resources Board regulations for shipments within, through, or into California.
4. RECEIPTS AND BILLS OF LADING
Upon SHIPPER’s request, BROKER will provide proof of shipment acceptance and delivery, such as a signed Bill of Lading or Proof of Delivery. Insertion of BROKER’s name on any Bill of Lading is for SHIPPER’s convenience and does not change BROKER’s status as a broker.
5. PAYMENTS
BROKER shall invoice SHIPPER per agreed-upon rates. Payment is due within 30 days of the invoice date unless otherwise agreed in writing. Full payment to BROKER relieves SHIPPER of liability to carriers for non-payment.
6. CLAIMS
A. Freight Claims: Claims for cargo loss or damage must be filed within 180 days of the incident. SHIPPER may file claims with BROKER or the carrier. BROKER’s liability is limited unless negligence is proven.
B. Other Claims: Any other claims must be reported within 60 days of notice. Legal action must commence within two years of the claim notice.
7. INSURANCE
BROKER agrees to maintain:
- General Liability Insurance: $1,000,000
- Broker Liability/Contingent Auto Liability: $1,000,000
- Contingent Cargo Liability: $100,000
Certificates of insurance naming SHIPPER as “Certificate Holder” will be provided upon request.
8. SURETY BOND
BROKER shall maintain a $100,000 surety bond or trust fund as required by FMCSA and provide proof upon request.
9. HAZARDOUS MATERIALS
SHIPPER must disclose any hazardous materials in shipments and comply with all regulations. SHIPPER indemnifies BROKER against penalties resulting from non-compliance.
10. FORCE MAJEURE
Neither PARTY is liable for failure to perform due to events outside their reasonable control, including natural disasters, wars, and government actions.
11. INDEMNIFICATION
PARTIES agree to indemnify and hold each other harmless from claims, actions, or damages arising from their respective performances, except when caused by negligence or intentional acts.
12. CONFIDENTIALITY
Financial and operational information shared between the PARTIES is confidential and shall not be disclosed without prior written consent.
13. GOVERNING LAW
These Terms of Service are governed by federal laws governing interstate transportation and, where applicable, the laws of Maryland.
14. ENTIRE AGREEMENT
This document constitutes the entire agreement between the PARTIES and supersedes all prior agreements on the subject.
For inquiries, contact:
Backhaulers LLC
145 West Ostend Street, Suite 600
Baltimore, MD 21230
Phone: 443-827-7879
Email: [email protected]