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What is Transportation Services Agreement?
Transportation Services Agreement A Transportation Services Agreement outlines terms for transportation services, specifying service types, routes, pricing, service levels, and responsibilities of transportation service providers.
Sample template:
TRANSPORTATION SERVICES AGREEMENT
This Transportation Services Agreement (the "Agreement") is made and entered into as of the date of execution (the "Effective Date") by and between Liberty Logistics Solutions Inc, a corporation organized and existing under the laws of the United States, having its principal place of business at [address] (the "Provider"), and [Customer Name], a corporation organized and existing under the laws of [Customer State], having its principal place of business at [address] (the "Customer").
1. Services
1.1. Transportation Services
The Provider shall provide transportation services (the "Services") to the Customer as specified in the service addendum(s), which may include ground, air, and ocean freight transportation for the Customer's goods and materials (the "Goods"). The Agreement, including its addendum(s), shall be in writing and signed by both parties.
2. Routes and Schedules
2.1. Routing of Goods
The Provider shall transport the Goods over such routes and according to such schedules as the Provider shall determine in its sole discretion unless directed otherwise in writing by the Customer.
3. Pricing
3.1. Service Rates
The Customer shall pay the Provider for the Services at the rates and charges set forth in the relevant service addendum(s). The Provider may, in its sole discretion, adjust such rates and charges upon thirty (30) days written notice to the Customer.
4. Service Levels and Performance
4.1. Service Standards
The Provider shall perform the Services in accordance with the service levels and performance standards described in any agreed-upon service addendum(s). In the event of any conflict between the terms of this Agreement and any service addendum(s), the terms of the relevant service addendum(s) shall control.
5. Provider Responsibilities
5.1. Compliance with Laws
The Provider shall comply with all applicable federal, state, and local laws, rules, regulations, and ordinances related to the provision of the Services (the "Laws"). The Provider shall ensure that all of its employees, agents, and subcontractors also comply with the Laws and act in accordance with all applicable industry standards.
5.2. Insurance
The Provider shall maintain, at its expense, all necessary insurance coverage related to the Services, including, without limitation, motor carrier, cargo, and commercial general liability insurance, with policy limits not less than those required under applicable laws or regulations, or as may be specified in any service addendum(s).
6. Customer Responsibilities
6.1. Preparation of Goods
The Customer shall be solely responsible for the proper packaging, marking, and labeling of the Goods for shipment, so as to facilitate transportation and minimize the likelihood of any loss or damage during transportation.
6.2. Payment
The Customer shall be solely responsible for the payment of all fees, rates, and charges for the Services, as set forth in the relevant service addendum(s), as amended from time to time. The Customer shall pay all invoices, without deduction or setoff, within thirty (30) days of receipt of an invoice from the Provider.
7. Term and Termination
7.1. Term
This Agreement shall be effective as of the Effective Date and shall continue for a term of one (1) year, unless earlier terminated by either party as provided herein. This Agreement may be extended for additional one (1) year terms by mutual written agreement of the parties.
7.2. Termination
Either party may terminate this Agreement at any time upon thirty (30) days written notice to the other party in the event the other party breaches any material term or condition of this Agreement which is not cured within said thirty (30) day notice period.
8. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the United States and the state in which the Services are primarily provided, without regard for conflicts of law principles. Any dispute arising out of this Agreement shall be resolved by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
[Provider Signature Block]
[Customer Signature Block]
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Main Sections of a Transportation Services Agreement
In this Transportation Services Agreement, you will see the following sections:
- Services
- Routes and Schedules
- Pricing
- Service Levels and Performance
- Provider Responsibilities
- Customer Responsibilities
- Term and Termination
- Governing Law
About each Section - Analysis and Summary:
- Services : This section explains that the Provider will offer transportation services for the Customer's goods. These services will be detailed in separate written addendums, which both parties must sign. Think of it like a menu of services that the Provider offers, and the Customer chooses what they need.
- Routes and Schedules : The Provider will decide the best routes and schedules for transporting the Customer's goods, unless the Customer provides specific instructions. It's like a delivery driver choosing the fastest route to deliver a package, but the customer can request a specific route if they prefer.
- Pricing : The Customer will pay the Provider for the services based on the rates mentioned in the service addendums. The Provider can change these rates with a 30-day written notice. It's similar to a subscription service where you pay for the services you use, and the company can change the prices with proper notice.
- Service Levels and Performance : The Provider must perform the services according to the agreed-upon service levels and performance standards in the service addendums. If there's a conflict between this Agreement and the addendums, the addendums take precedence. It's like a contract between a homeowner and a contractor, where the contractor must meet specific quality standards for their work.
- Provider Responsibilities : The Provider must follow all laws and regulations related to the transportation services and ensure their employees, agents, and subcontractors do the same. They must also maintain necessary insurance coverage. It's like a restaurant following health and safety regulations and having insurance in case of accidents.
- Customer Responsibilities : The Customer is responsible for properly packaging, marking, and labeling their goods for shipment. They must also pay for the services according to the agreed-upon rates in the service addendums. It's like a customer preparing a package for shipping and paying the shipping fees.
- Term and Termination : The Agreement lasts for one year and can be extended by mutual agreement. Either party can terminate the Agreement with a 30-day written notice if the other party breaches any material term or condition and doesn't fix it within that notice period. It's like a gym membership that lasts for a year and can be canceled if either party doesn't follow the rules.
- Governing Law : The Agreement is governed by the laws of the United States and the state where the services are primarily provided. Any disputes will be resolved through binding arbitration. It's like agreeing to follow the rules of a specific country and state and using a neutral third party to resolve any disagreements.
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