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U.S. shipper, broker groups agree on model contract

U.S. shipper, broker groups agree on model contract

   Arlington, Va.-based National Industrial Transportation League and the Transportation Intermediaries Associations (TIA) have agreed on a model contract that shippers and freight brokers can voluntarily use as a template to help structure their contracts.

   The TIA board approved the model agreement Friday and the NIT League is expected to do so when it votes on the matter today. The two groups held their joint annual conferences in San Antonio this week.

   The contracts, which cover brokerage for motor carriage, will be posted on the TIA and NIT League Web sites for use free of charge by all shippers and third party logistics providers.

   The model contract governs basic business relations between the two parties, and can be customized to include specific rates, terms and service obligations. It is structured along the lines of the model shipper-carrier contract struck by NIT League and the American Trucking Association (ATA) last summer.

   TIA and ATA are in the process of developing a similar model contract for motor carriers and 3PLs.