Carrier Services Agreement
Carrier Services Agreement
Carrier Services Agreement
RECITALS
1. Carrier owns or controls motor vehicles, and is ready, willing, and able to operate the
vehicles for cargo transportation services (herein "Services").
2. Broker, a licensed transportation broker, desires to hire Carrier to perform the Services
for Broker’s customers in accordance with the terms and subject to the conditions of
this Agreement.
For and in consideration of the mutual covenants herein contained, Carrier and Broker agree
as follows:
(A) Broker, in its sole discretion, will tender cargo to Carrier from time to time for
transportation by Carrier. Cargo tendered shall be accompanied by Broker’s Uniform
Short Form Straight Bill of Lading or Broker’s customer's Uniform Short Form Straight Bill
of Lading (herein "Bill of Lading"). Not withstanding, Carrier shall not be required to
furnish any specific number of vehicles or to haul any specific amount of cargo. Nothing
in this Agreement shall preclude Broker from using the services of other carriers.
Carrier's service shall be provided at its own expense and under its entire control as an
independent contractor.
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(B) Carrier shall provide serviceable equipment and vehicles maintained in good and legal
operating condition. Carrier shall, at all times, be responsible for and pay all costs and
expenses necessary or incidental to the maintenance and operation of the equipment and
vehicles, including the cost of fuel, supplies, licenses, permits and tolls. Carrier shall have
exclusive control and direction of the equipment and vehicles used in the performance of
Services pursuant to this Agreement.
(C) Carrier, at its sole cost and expense, shall procure and maintain all licenses and permits
required by local, state, or Federal authorities for the performance of Services and shall
file and maintain appropriate tariffs required by any applicable jurisdiction. Carrier shall
comply with all applicable laws, ordinances, codes, rules, and regulations in performing
the Services, including those of the Surface Transportation Board, the U.S. D.0.T. and
those of Canadian Provincial Authorities where applicable. A copy of Carrier's Interstate
Commerce Commission Permit or successor Federal agency Permit and a copy of
Canadian Provincial Licenses/Pen-nits, where applicable, will be provided as evidence of
Carrier's registration.
(D) Carrier's drivers shall be properly licensed and qualified for the operation of Carrier's
vehicles and the performance of the Services.
(E) Carrier shall protect and preserve Broker’s customers’ cargo and shall transport all cargo
with prompt and reasonable dispatch in accordance with the scheduled delivery
requirements of Broker. Carrier will train its drivers in the proper handling of Broker’s
customers’ cargo (including hazardous materials when shipped in accordance with the
provisions of 49 C.F. R. §70, et seq.) from the point of origin to the point of delivery,
including the loading and unloading of the vehicles, if required.
(F) Carrier will meet with representatives of Broker at Broker’s request to discuss the
transportation requirements of Broker. Carrier agrees not to solicit transportation
business directly from any of Broker’s customers for which Carrier is doing business.
Agreements and business in existence prior to Broker and Broker’s customer relationship
will not be subject to the restriction or penalties.
(G) Carrier and Broker acknowledge and agree that these services are designed to meet the
distinct needs of Broker’s customers.
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(H) Carrier will comply with all service expectations established by Broker’s customers for
services provided to them.
(I) Upon request of Broker, Carrier will provide Broker with Electronic Data Interchange,
Internet, fax, or voice notification upon arrival for scheduled pick-up, at the time pick-up
is effectuated, of in-transit shipment status, and at the time delivery is completed.
Information relayed to Broker by Carrier shall include, but not be limited to, billing
information, bill of lading execution, exceptions, special service requirements, etc.
SECTION 2 – COMPENSATION
Broker will pay Carrier for its performance of the Services in accordance with the rates set forth
in the Rate Schedule. The Rate Schedule must include all accessorial charges applicable. Both
parties must sign the Rate Schedule and addenda to it. Carrier shall take such steps as are
required by applicable law to ensure such rates are lawful. Carrier will invoice Broker upon
completion of Carrier's performance of Services and each invoice or statement will reference the
applicable Bill(s) of Lading, include a certified copy of Proof of Delivery as evidence of Carrier's
performance of service, and other material as specified by Broker. An addendum may be added
for procedures requiring payment by EDI. Invoices will be due and payable within thirty (30)
days' of their receipt by Broker. Broker pays on miles calculated utilizing PC Miler Version 2000
“practical” mileage.
SECTION 3 - TERM
The term of this Agreement shall commence on the Agreement date and continue thereafter
until terminated by either party at any time without liability upon thirty (30) days prior written
notice to the other party. Such termination shall not release either party from any liability or
obligation existing or accrued at or prior to the date of such termination. Not withstanding, if
either party shall be required to cease and desist from the performance of Services or other
obligations set forth in this Agreement by reason of any provision of law, order of any court,
commission or other public authority, either party shall have the right to terminate this
Agreement immediately upon written notice to the other party.
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SECTION 4 - CARRIER'S INDEMNIFICATION
(A) Carrier shall indemnify, defend and hold harmless Broker, its officers, directors and
employees from and against any and all claims, actions, losses, damages, expenses,
judgments and costs (including reasonable attorneys' fees and costs) resulting from or
arising out of Carrier's performance of the Services, including any loss of, damage to or
destruction of property and vehicles, or from the death of or injury to any person, unless
arising from Broker’s grossly negligent or wrongful act. The obligations of Carrier under
this Section shall survive termination or expiration of this Agreement.
(B) Except for any applicable Federal excise tax levied upon the transportation of cargo for
Broker, Carrier shall pay any and all taxes, together with penalties, fines or interest
thereon, imposed or levied by any Federal, state or local taxing authority having
jurisdiction over the operation, use, maintenance or ownership of the vehicles and Carrier
shall indemnify and hold harmless Broker from any and all taxes the payment of which is
the responsibility of Carrier.
SECTION 5 – INSURANCE
(A) During the term of this Agreement and at any other time when Carrier performs Services
for Broker, Carrier's insurance certificates shall specify Foodmaster Logistics, LLC as a
certificate holder. Carrier shall maintain a policy or policies of insurance with coverage as
follows:
(i) Cargo liability insurance with minimum limits of $100,000 per occurrence,
which policy or policies shall name Broker, its officers, directors and employees
as certificate holder;
(ii) Automobile liability insurance covering its owned, hired and non-owned
automobiles with minimum limits of $1,000,000 per occurrence which policy or
policies shall name Broker, its officers, directors and employees as certificate
holders,
(iii) Comprehensive general liability insurance, including contractual liability
coverage, with minimum limits of $1,000,000 per occurrence; and
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(iv) Workers Compensation and Employer's Liability insurance in such amounts as
may be required by applicable statutes.
(v) Carrier shall meet the insurance requirements of the project site it services, if
such insurance requirements exceed the minimum allowed in Section 5(A)(i)-
(iv) above.
(B) Carrier warrants to Broker that Carrier has not done and will not do anything that would
cause the insurance policy or policies carried by Carrier to be suspended, impaired,
canceled, or otherwise adversely affected. Each policy shall require that Broker be given
not less than thirty (30) days prior written notice by the insurer of any cancellation,
renewal or material change in Carrier's policy or policies of insurance.
(C) Carrier shall supply to Broker certificates of insurance evidencing the coverage required
herein and copies of the applicable policies immediately upon execution of this
Agreement by Carrier and prior to providing any Services. Such certificates shall be
attached as evidence of documents.
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undercharge claims not filed by Carrier within 270 days of the ship date specified on the
Bill of Lading are waived.
(D) All invoices not submitted to Broker within 270 days of the ship date specified on the Bill
Of Lading are waived.
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(v) In the event Carrier is audited by the Department of Transportation, Carrier
shall notify Broker and, if there is a change in the safety rating from
Satisfactory, Broker shall have the option to cancel the contract.
(B) Upon the occurrence of an Event of Default, the non-defaulting party's exercise of the
right to terminate this Agreement shall not be deemed an election of remedies and the
non-defaulting party shall have such further remedies against the defaulting party as may
be available to it at law or in equity.
SECTION 10 - MISCELLANEOUS
(A) If, by any reason of Force Majeure, either party is rendered unable, in whole or in part, to
perform any of its obligations herein, such obligations shall be suspended insofar as it is
affected by Force Majeure. As used herein, Force Majeure shall mean acts of God, public
enemy, war, floods, storms or other acts of the elements, accidental fires, strikes,
lockouts or other labor acts or regulations, or any other circumstances or conditions
beyond the reasonable control of said party and without the fault or neglect of such
party.
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(C) No consent or waiver, express or implied, by either party to or of any breach of default
by the other party in the performance of any of its obligations shall be deemed or
construed to be a consent or waiver to or of any other breach or default by such party.
Failure on the part of either party to complain of any act or failure to act of the other
party or to declare the other party in default, irrespective of how long such failure
continues, shall not constitute a waiver of the rights of such party.
(D) In the event of any conflict between any term or provision of this Agreement and any
term or provision in any attached documents, the term or provision in this Agreement
shall govern to the extent of the conflict.
(E) All documents described in this Agreement shall be deemed to be incorporated and made
a part of this Agreement.
(F) This Agreement shall not be assigned, delegated or transferred in whole or in part by
either party, nor shall either party assign any monies due or to become due to it pursuant
to this Agreement without the prior written consent of the other party; except that Broker
may assign its rights hereunder to a wholly-owned subsidiary of Broker without the
Carrier's consent, provided that Broker shall remain primarily liable for the performance of
this Agreement notwithstanding such assignment.
(G) This Agreement is entered into in Arizona and shall be governed by and construed
according to the laws of Arizona.
(H) This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which shall constitute one and the same agreement.
(I) Section headings contained in this Agreement are for ease of reference only and shall not
affect the interpretation or meaning of this Agreement.
(J) This Agreement shall inure to the benefit of and be binding upon the parties and their
respective heirs, administrators, successors, assigns and legal representatives.
(K) If any one or more of the provisions contained in this Agreement shall, for any reason, be
held invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement, but it shall be
construed as if such invalid, illegal or unenforceable provision had never been contained
in it.
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(L) All notices, requests, consents, approvals and other communications required in this
Agreement shall be in writing and shall be deemed to have been duly given if hand-
delivered, sent by facsimile, sent by email, sent by overnight service or sent by United
States Certified or Registered mail, return receipt requested, to the following addresses:
If to Carrier. ___________________________________
___________________________________
___________________________________
___________________________________
Attention:
Notices shall be effective (i) if sent by overnight service, the day after tender to the
overnight service for delivery; (ii) if sent by United States mail, upon receipt or three days
following deposit in the mail, whichever is first to occur, (iii) if sent by email or facsimile,
the day following dispatch of the facsimile; or (iv) if hand-delivered, upon receipt.
(M) This Agreement, together with any attached documents, constitutes the entire agreement
between Broker and Carrier and supersedes all prior written or oral agreements,
understandings, representations, negotiations, and correspondence between them. This
Agreement shall not be supplemented, amended or modified by any course of dealing,
course of performance or usage of trade and may only be supplemented, amended or
modified by a written instrument duly executed by authorized representatives of both
parties.
(N) Time is of the essence of all purposes in this Agreement.
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SECTION 11 - VALIDITY OF AGREEMENT
This Agreement shall not be valid nor binding upon Broker unless it shall have been executed by
an officer of Broker.
IN WITNESS THEREOF, the parties have made and executed this Agreement as of the day and
year first above written.
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