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The Importance of Carrier Contracts and Agreements

“Get it in writing” is a common phrase in business. This means that whatever transactions you do, it’s important to have the agreed terms between you and the second party detailed in writing. The reason is to avoid future conflict or disagreement.

In the trucking business, an agreement form known as customer carrier packet is used to fortify the agreed terms and conditions between both parties. Everyone has good intentions, but this form secures freight delivery terms and minimizes future conflict or disagreement.

carrier contracts

What’s inside a customer carrier packet?

Customer carrier packets contain information about the owner, liability insurance, conditions, broker bonds, transportation licensing, and expectations to ensure the safety of the shipment and goods. A customer carrier packet also states the shipper’s responsibility while transporting. Below are important reasons behind signing a customer carrier packet.

Responsibilities

Through a formal customer carrier packet agreement, truck drivers and freight agents will be aware of their rights, responsibilities, limitations, and duties while transporting a load. Knowing these parameters can help them avoid any discrepancies.

Clarity

An agreement signed by two parties is proof that a particular negotiation took place. In cases where one party does wrong or goes outside of consented terms, agreements can clarify specified actions or support taking action to rectify a situation.

What is Bill of Lading?

Another vital document is a bill of lading. It’s a contract between the carrier and the shipper or the cargo owner for the purpose of carrying out the transportation of the cargo goods.

A bill of lading is issued by the carrier to the shipper in exchange for the receipt of the transport goods. The issuance proves that the carrier has received the products from the shipper.

For shippers, filling out the form will give them ideas of the time and effort they should exert in delivering goods. Plus, they’ll also understand the process of how the load should be delivered.