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Freight Broker Carrier Agreement Template for United Arab Emirates

A comprehensive agreement governed by UAE law that establishes the legal and operational relationship between a freight broker and a carrier company. This document outlines the terms and conditions for freight transportation services, including responsibilities, liabilities, payment terms, and operational procedures. It ensures compliance with UAE Federal Law No. 18 of 1993 (Commercial Transactions Law) and relevant transport regulations, while addressing specific requirements of the UAE logistics sector, including provisions for both domestic and international freight operations where applicable.

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What is a Freight Broker Carrier Agreement?

This Freight Broker Carrier Agreement is designed for use in the United Arab Emirates logistics sector, establishing a formal relationship between freight brokers and transportation carriers. The document is essential for businesses engaged in freight brokerage and transportation services within the UAE or operating from UAE free zones. It incorporates requirements from UAE Federal Law No. 18 of 1993, UAE Federal Transport Authority regulations, and relevant emirate-specific transport laws. The agreement covers crucial aspects including service scope, operational procedures, liability allocation, insurance requirements, and payment terms, while ensuring compliance with local commercial practices and regulatory requirements. It's particularly relevant for companies managing freight operations across the UAE's diverse economic zones and international logistics corridors.

What sections should be included in a Freight Broker Carrier Agreement?

1. Parties: Identification of the Freight Broker and Carrier, including full legal names, addresses, and registration details

2. Background: Context of the agreement, including the broker's and carrier's business activities and intention to enter into a freight services arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of freight services to be provided by the carrier and brokerage services by the broker

5. Carrier Obligations: Specific responsibilities of the carrier including compliance with laws, maintenance of vehicles, and service standards

6. Broker Obligations: Responsibilities of the broker including payment terms, load information, and communication requirements

7. Operating Procedures: Day-to-day operational procedures including booking process, documentation requirements, and communication protocols

8. Payment Terms: Detailed payment provisions including rates, invoicing procedures, and payment timeframes

9. Insurance and Liability: Insurance requirements and allocation of liability between parties

10. Term and Termination: Duration of agreement and circumstances under which it can be terminated

11. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and applicable law

12. Confidentiality: Protection of confidential information and trade secrets

13. Force Majeure: Provisions for unforeseen circumstances affecting performance

14. General Provisions: Standard legal provisions including notices, amendments, and assignment

What sections are optional to include in a Freight Broker Carrier Agreement?

1. Specialized Cargo Handling: Include when agreement covers transportation of dangerous goods, temperature-controlled cargo, or other special cargo types

2. Cross-Border Operations: Include when services involve international freight operations

3. Performance Metrics: Include when specific KPIs and performance standards are required

4. Technology Integration: Include when parties will use specific software or systems for operations

5. Environmental Compliance: Include when environmental standards or green initiatives are part of the agreement

6. Subcontracting: Include when carrier may need to subcontract services

7. Training Requirements: Include when specific training or certification requirements exist

8. Security Protocols: Include when handling high-value or security-sensitive cargo

What schedules should be included in a Freight Broker Carrier Agreement?

1. Schedule A - Rate Card: Detailed pricing structure including base rates, surcharges, and special service fees

2. Schedule B - Service Locations: List of authorized pickup and delivery locations

3. Schedule C - Operating Procedures Manual: Detailed operational procedures and protocols

4. Schedule D - Insurance Requirements: Specific insurance types and coverage amounts required

5. Schedule E - Performance Standards: Detailed KPIs and measurement criteria

6. Schedule F - Equipment Specifications: Required vehicle and equipment specifications

7. Appendix 1 - Required Documentation: Ƶ and samples of required shipping documents

8. Appendix 2 - Contact Information: List of key contacts and escalation procedures

9. Appendix 3 - Compliance Certificates: Copies of required licenses and certifications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Publisher

Ƶ

Document Type

Broker Agreement

Cost

Free to use

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