Got Contract? New Model Can Help
Document Aims to Simplify Your Dealmaking - For Free.
If you've been having trouble coming to terms with your freight customers, you might want to look into the new carrier/shipper model contract announced last month. Based on agreements already being used in the industry, it's written clearly - and it doesn't cost anything.
The model is the result of a joint effort by American Trucking Assns. - representing trucking companies, and the National Industrial Transportation League - representing shippers. It provides a simplified base for negotiation.
And for good measure, the U.S. Department of Justice - in writing - says the model does not violate antitrust law, and that DOJ's Antitrust Division does not intend to challenge its distribution.
A fill-in-the-blanks document, the model provides all or most of the necessary boilerplate contract language. You just work your way through it with the customer and negotiate what goes into the blank spaces allowed - items such as length of the agreement, rates, pay schedule, late charges, levels of carrier insurance, liability limits, and so on.
Each sector of the model includes commentary from its authors to help all parties further understand the provisions.
Loading and unloading arrangements are covered, along with tractor and/or trailer detention, tarping and other areas where you can spell out how much to charge for them.
Example: The commentary advises that when a carrier's personnel has to load or unload, or use a lumper at a shipper's or consignee's direction, there should be reasonable payment or reimbursement to the carrier. You and your customer will have to negotiate what "reasonable" is.
More and more fleets are charging shippers for detention time, especially under new hours of services rules. And they're getting paid - but only when they are able to fully document delays.
Keep this in mind: You can only enforce a contract with good systems and recordkeeping.
A couple of items in the model stand out in particular: freight documentation and fuel surcharges.
There's a sample Uniform Freight Documentation form included with the contract package. The form aims to cut down on confusion between bills of lading and carrier/contract terms, serving as proof of delivery. It "should essentially serve as a receipt," according to the authors. Good idea.
Then there's the Fuel Surcharge Program form, which offers a platform for developing a formula for the shipper to share your fuel cost burden. Also included: a program to provide for rebates to the shipper if the fuel price falls below the specified level.
The model contract is available free online from either ATA (www.trucking.org) or NITL (www.nitl.org). Hopefully it will help get you through what can be a trying time, and both you and your customer can part feeling like you got a fair deal.
Doug Condra
President
