Tia Model Broker Carrier Agreement
TIA is the leading professional and educational organization in the $100 billion logistics industry. TIA is the only organization that exclusively represents transport agents from all disciplines active in national and international trade. TIA is the voice of transportation agents for shippers, carriers, government officials and international organizations. TIA members are committed to the highest ethical level in the sector. TIA is a member of the International Federation of Freight Forwarder Associations. TIA organizes an annual conference and fair; an annual marketing conference with major shippers and forwarders; and provides education, research and services to help their members succeed. To learn more about TIA and its model brokerage contract, visit www.tianet.org. For example, the contract has the floor, where an organization would agree that the broker “is the only party responsible for paying transportation costs,” and an absolute prohibition for air carriers to pay freight fees by a shipper who has paid a broker. These provisions would remove the airline`s right to collect unpaid transportation costs from a shipper in an agency relationship with its chosen real estate agent. The ATA proposes that air carriers that are contracted on the basis of the TIA model consult with their lawyers on the legal implications of their provisions and understand that they are not required to accept conditions that they deem offensive. The American Trucking Associations have expressed serious concerns about several provisions of the new modeling agreement of the Intermediator Carrier Association to structure the legal relationship between carriers and brokers. ATA believes that, in many cases, the model agreement favours the interests of brokers and their clients over those of the engine erode.
The contract offers these benefits to both thieves and brokers: “As president of a carrier, a standardized contract will create efficiency and save me a lot of time,” says Rick Staller, President of Bee Trucking Inc. and President of the TIA Motor Carrier Conference. This contract covers two of the major problems for thieves: it requires brokers to pay even if they are not behind the sender, and it allows to appeal if the broker does not pay within an agreed time frame. The Association of Transport Intermediaries (TIA), an interprofessional organization of external logistics providers (3PLs), has developed a brokerage-carrier contract to promote best practices between brokers and carriers. The standard contract is available on the TIA website: www.tianet.org. “This model contract was developed by an active committee of carriers and brokers, which helped to make it fair and balanced,” said Alec Gizzi, Chair of the Carrier Brokerage Contracts Committee and President of JBS Logistics, Inc. The AIT will continue to explore and develop new opportunities for improvement within the agency and broker industry, and will work with other organizations to establish best practices. Broker must pay: Provides for the forwarder to get payment from the broker, regardless of whether the real estate agent withdraws the payment from his client. Consider for payment to performing bodies: Sees an unauthorized re-brokerage ban on cargo. The model also provides for payment directly to the exporting institution if the broker discovers that the cargo has been resettled without authorization and prior to payment.
Use of the sender: offers the carrier the use of the sender for payment if the broker does not pay the forwarder. “Our only goal for the TIA Model Broker-Carrier-Carrier Contract was to create a fair and balanced model contract that increases the standard and serves the best interests of both brokers and carriers,” said Robert Voltmann, President and CEO of TIA.