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A broker-carrier agreement is the contract between a freight broker and a motor carrier (trucking company) that will haul freight for the broker's customers. It sets the ground rules for every load the carrier moves for you: the carrier's responsibilities, insurance requirements, how and when you'll pay the carrier, and what happens if something goes wrong.
Should you be using one? Absolutely. Every carrier that hauls freight for your customers should have a signed broker-carrier agreement on file before the first load. If something goes wrong, such as damaged cargo, a missed delivery or a payment dispute, this agreement is the legal document that protects you.
Broker-Carrier Agreement vs. Rate Confirmation
The two documents work together:
- The broker-carrier agreement is signed once, when you start working with a carrier. It covers the general terms of the relationship.
- The rate confirmation is signed for every individual load. It covers that load's rate, pickup and delivery details, equipment and any special instructions.
If the carrier hasn't signed your agreement, don't tender the load, even if they've signed the rate confirmation.
What Should a Broker-Carrier Agreement Include?
A solid broker-carrier agreement typically covers:
- Parties and authority: the carrier's legal name, USDOT number and operating authority, and confirmation that they're authorized to haul the freight.
- Insurance requirements: minimum auto liability (federal minimum for most general freight is $750,000) and the cargo insurance amount you require, usually with you listed as a certificate holder.
- Payment terms: how long you have to pay the carrier, what documents they must send (signed BOL, proof of delivery), and any quick pay option. See days to pay.
- No double brokering: the carrier must haul the load with its own equipment and drivers and can't re-broker it to another carrier.
- Non-solicitation (back-solicitation): the carrier agrees not to go around you and work directly with your customer for a set period.
- Cargo claims: the carrier's liability for loss or damage and the process and deadlines for filing claims.
- Accessorial charges: how detention, layovers, lumper fees and truck-ordered-not-used (TONU) are handled and approved.
- Indemnification: who is responsible if a third party sues because of the carrier's actions.
- Independent contractor status: the carrier controls its own drivers, equipment and safety compliance.
- Term, termination and governing law: how long the agreement lasts, how either side can end it, and which state's law applies.
Where Do You Get a Broker-Carrier Agreement?
You can buy templates online, and industry associations publish model contracts. LearnFreight students receive a sample broker-carrier agreement in our freight broker course, which you can download and adapt to your business.
Whichever template you start with, it's always a good idea to have an attorney review your agreement to make sure it fits your business and adequately protects you.
Red Flags: When Not to Work With a Carrier
Any time you work with a new transportation company, make sure your paperwork is complete first. If a carrier won't sign the agreement, says they'll "send it later," or the information or signature is unreadable, don't give them the load. Move on to the next carrier. The same goes for carriers whose authority is new or inactive, or whose insurance certificate doesn't check out.
Broker-Shipper Agreement vs. Broker-Carrier Agreement
Freight brokers usually sign agreements on both sides of a load:
| Comparison | Broker-Carrier Agreement | Broker-Shipper Agreement |
|---|---|---|
| Signed with | The trucking company hauling the freight | The customer (shipper or receiver) whose freight you're moving |
| Main purpose | Sets carrier responsibilities, insurance and how you pay them | Sets the services you provide and how the customer pays you |
| Key terms | Insurance, payment terms, no double brokering, non-solicitation, cargo claims | Rates and billing, payment terms, your role as a broker (not a carrier), how cargo claims are handled |
A broker-shipper agreement (also called a shipper-broker contract) makes clear that you're arranging transportation as a licensed broker, not hauling the freight yourself, and sets how and when the customer pays you. LearnFreight's training includes a sample shipper contract as well.
What About a Freight Agent Agreement?
If you work as a freight agent under a licensed broker, you'll sign a freight agent agreement with that brokerage. It typically covers your commission split, who pays for expenses like load boards and phone, who "owns" the customer accounts you bring in, non-compete or non-solicitation terms, and how either side can end the relationship. Read it carefully before signing. See how agent commissions work in our freight broker salary guide.
Frequently Asked Questions
Is a broker-carrier agreement required by law?
Federal rules don't require a specific broker-carrier agreement form, but brokers are expected to keep records of each transaction, and operating without a signed agreement leaves you exposed if there's a dispute or claim. In practice, every professional brokerage uses one.
What's the difference between a broker-carrier agreement and a rate confirmation?
The broker-carrier agreement is signed once and covers the overall relationship with a carrier. The rate confirmation is signed for each load and covers that load's rate and details.
What is double brokering?
Double brokering is when a carrier accepts a load and then re-brokers it to another carrier without the broker's permission. It's a common source of fraud and non-payment, so broker-carrier agreements should prohibit it.
What is a broker-shipper agreement?
A broker-shipper agreement is the contract between a freight broker and its customer. It covers the broker's services, rates, payment terms and how cargo claims are handled.
Can I use a free broker-carrier agreement template?
You can use a template as a starting point, but have an attorney review it so it fits your business, your state and the type of freight you move.
Want to learn the paperwork side of freight brokering, step by step? LearnFreight's online freight broker training covers broker-carrier and broker-shipper agreements, rate confirmations, carrier vetting and more, with sample documents and support from our team. Training starts at $60/month with a 30-day money-back guarantee.