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Following antitrust approval from the Department of Justice, ATA released its long awaited model agreement for structuring the contractual relationships between motor carriers and brokers in 2006. The model agreement is designed to assist motor carriers and brokers reach a common understanding of their rights and obligations and covers such issues as freight documentation, insurance coverage, and cargo liability. Provisions related to rates, charges, and other competitively sensitive areas are left blank and are to be completed in individual negotiations. A two-page short form of the model is provided for the spot market environment.
The ATA model follows the release of another model carrier/broker agreement developed by the Transportation Intermediaries Association (TIA). ATA has cautioned its members that it believes that the TIA model favors the interest of brokers and their shipper customers over that of motor carriers and those carriers should be careful to distinguish between the two model agreements when negotiating and drafting their individualized contractual agreements with brokers. The ATA model motor carrier/broker agreements and general instructions for their completion may be found on the ATA website.
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