Model shipper/trucker contract proposed
The National Industrial Transportation League and the American Trucking Associations have agreed on a “model truckload motor carrier/shipper agreement” that they recommend to their members as a starting point for contract negotiations.
The goal of the model agreement is to promote uniformity in contract provisions to increase efficiency in negotiations and provide a balanced agreement for shippers and carriers, the NIT League said Tuesday.
As trade associations of shippers and motor carriers respectively, the NIT League and the ATA observed that, too often, one or both parties do not fully understand their rights and obligations under their current contractual agreements, leading to disputes, unforeseen liabilities, and even expensive litigation.
By contrast, the proposed model agreement “eliminates as much legalese as possible, substituting plain English terms,” the NIT League said. It is designed to help ensure that essential elements of the intended relationship are covered in ways the parties intended and understand.
The trade groups stressed that use of the model agreement is intended as a starting point for negotiations, and that use of any of its sections or of the agreement as a whole is purely voluntary. The contract model covers many standard or common provisions, but must be customized to reflect the needs of the individual shipper and carrier.
“All provisions related to rates, charges, limitation of liability, level of carrier insurance, and other related areas are left blank and must be negotiated,” the NIT League stressed.
The model agreement project was started by the ATA in 2002. In the fall of that year the U.S. Justice Department issued a “business review letter” that effectively stated that creation and distribution of a voluntary motor carrier/shipper model contract would not raise antitrust concerns. In 2003, the American Trucking Associations invited the NIT League, on behalf of shippers, to join it in the development of the model agreement.
The two associations have worked on the model agreement for the past year. The model agreement and accompanying general instructions for its use are posted on the Web sites of both associations at www.truckline.com and www.nitl.org .