A Best Practices Program of The Transportation Intermediaries Association

AGREEMENT FOR PROPERTY BROKERS AND FREIGHT FORWARDERS

Licensed property brokers and freight forwarders that are members in good standing of the Transportation Intermediaries Association (TIA) are eligible to participate in this program. The following tenets are stipulated by participating property brokers and freight forwarders as constituting best practices to which their respective companies will abide as a condition of participation in TIA’s Platinum Performance Program (P3(sm) Program). Participants are required to attest, through the signature of its designated agent below, to their current and continuing compliance with these tenets upon entering the program as well as once each year as a condition of continued eligibility. As a condition of participation in this program, parties shall be held to the highest standard of compliance with the provisions detailed below. A participant’s failure to abide by all of these best practices provisions, upon complaint, investigation, and finding of non-compliance, shall be grounds for dismissal from the program with the forfeiture of all fees collected.

1. Written contract: Property brokers and freight forwarders shall execute a written contract with each motor carrier with whom they are doing business. This contract shall outline the terms agreed to between the parties for the service(s) to be provided.
2. Insurance: Property brokers and freight forwarders shall verify that a motor carrier with whom they contract has the requisite insurance and operating authority. Property broker and freight forwarder is also responsible for reviewing the carrier’s safety rating. Moreover, freight forwarders shall verify their insurance coverage as required by law. The exercise of due diligence requires that: (1) the shipper be informed of the insurance coverage’s provided by the property broker, freight forwarder, and motor carrier, and (2) property broker and freight forwarder inquire of shipper concerning any unusual characteristics of the load which may require modification of insurance coverage’s.
3. Authority Disclosure: Property brokers and freight forwarders shall fully disclose to the motor carrier under what authority the shipment is being offered, including the MC (motor carrier) number or freight forwarder (FF) number. Property broker authority and freight forward authority are separate legal concepts with different legal responsibilities assigned to each.
4. Service Disclosure: Property brokers and freight forwarders shall fully disclose to the contracted motor carrier the service expectations (transit time, delivery date, method of shipment handling at destination, etc.) and shall specify the maximum penalties for failure to comply on each shipment offered for transportation.
5. Terms of Carriage: Property brokers and freight forwarders shall confirm with the motor carrier the following information on each shipment tendered for transportation prior to shipment pick-up:

   • the total rate agreed to;
   • name of the party to be billed by the carrier (usually the property broker or freight forwarder);
   • size and weight of the shipment;
   • any special loading, unloading, or in-transit services required of the driver;
   • any special delivery requirements of the driver, such as a stipulated appointment time for delivery;
   • notice of the number of pallets required for exchange (if applicable);
   • advance notice of tarpaulins or other protection devices as well as special cargo securement devices required of the carrier in connection with a shipment offered for transportation;
   • advance notice of the size and type of trailer required for shipment offered for transport; and,
   • terms and conditions for dispute resolution as stipulated in the written contract between the parties.
6. Shipping Documents: Property brokers and freight forwarders shall promptly provide, or ensure the provision of, complete and accurate shipping documents for each shipment that the contracted motor carrier is transporting.
7. Payment: Property brokers and freight forwarders shall pay the motor carrier for services rendered within the payment terms stipulated in the contract for payment that is not subject to dispute.
8. Extension of Credit: Property brokers and freight forwarders shall thoroughly investigate the credit worthiness of shippers prior to extending credit terms to them. Such investigation shall include reliance on credit reporting agencies and other resources whose information reasonably can be relied upon to determine a customer’s credit worthiness.
9. Safety Compliance: Property brokers and freight forwarders shall consult with shippers to establish reasonable transit time requirements for shipments so the motor carrier can comply with Federal driver hours-of-service regulations and operate their vehicles within established speed limits. Moreover, property brokers and freight forwarders shall comply with established, legal limits on vehicle size and weight so that motor carrier equipment will not be, knowingly, overloaded in violation of state and/or Federal law.
10. Business Conduct: Property brokers and freight forwarders shall, in the normal course of business, conform to all established Federal, state and local regulations regarding property brokerage.
11. Hazardous Materials: Property brokers and freight forwarders arranging the transport of hazardous materials shipments, in conformance with the law, shall:

    • ensure that the motor carrier contracted for such shipment has the requisite Federal authority and MCS 90 insurance endorsement;
    • fully disclose to the motor carrier any hazardous materials or other restricted commodities in a shipment.
12. Negotiations and Disclosure: Property brokers and freight forwarders shall strive to build their business relationship with motor carriers by negotiating in good faith and disclosing to the motor carrier any special transport characteristics of the shipment being tendered, such as cargo of extraordinary value.
13. Integrity: Property brokers and freight forwarders shall never offer or solicit gifts or other favors in return for preferential treatment in rates, availability of equipment, delivery of shipments, or approval of claims.
14. Cooperation: Property brokers and freight forwarders continually shall:

    • work to maintain timely and effective communications between all parties to a shipment, including the shipper, carrier, consignee, and other involved service providers;
    • communicate professionally with all carrier representatives as a valued business partner;
    • work with the shipper to coordinate prompt filing of loss and damage claims with the carrier;
    • compensate the carrier fairly for unplanned layovers, stop-offs, driver loading and unloading, or unreasonable detention of drivers and/or equipment; and,
    • compensate the carrier fairly in instances where a shipment dispatched to the carrier, in writing, is cancelled after its equipment arrives at the shipper’s facility.
15. Loss/Damage: Property broker/freight forwarder will notify the motor carrier immediately upon learning of cargo loss or damage on a shipment. Property broker/freight forwarder will work with the consignee and motor carrier to mitigate any cargo loss or damage. Property broker/freight forwarder will promptly investigate cargo loss or damage, utilizing a cargo inspection service where necessary.