Recently decided that I could be more profitable if I went independent , so I set out to find direct customers. What I need now is to find out how to structure a contract for services , if one of the more experienced independents is willing to divulge this information , it would be much appreciated. Thanks in advance , Ontime

 

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PM Gman.

He's been an O/O for several companies and is now independant.
That man should write a book.

 

It depends on the type of agreement and relationship you want. Unless you have a long term relationship with a shipper, all you really need is a confirmation order. It should cover the shipper name, address, pickup and deliver information, rate and payment information. The payment information should include when the payment will be made and what will happen if the shipper doesn't pay as agreed. It should also include your responsibilities. I prefer simple contracts that don't require a lawyer to understand. Everything could be done on one sheet of paper.

If you want a more comprehensive contract, you can include things such as detention time, how and when claims should be filed, rates, fuel surcharge, etc., My guess is that most shippers will not want to sign a long term agreement with you unless you can prove a certain amount of capacity. Having one truck makes it difficult to commit to a certain level of service, especially for a larger shipper.

I have a couple of shippers with whom I do business and have never had a written agreement with them. We make a verbal agreement and that is the way it has always been. When I hauled cars I had some dealers whith whom I did business and never had a written agreement with them. We all do what we agreed to do. They call me, tell me what they have and where it goes, and I give them a rate. I don't necessarily recommend that approach, but in my case it has served me well. There are other shippers whom I would not want to haul anything without a written agreement. If you can get them to sign a long term agreement with them you may need to commit to a fixed rate for their freight. That may or may not be in your best interest. If they want a fixed rate and time frame then they should be willing to agree to a minimum number of loads. If you don't know a shipper, it is best to cover any agreement in writing. Even if you do know them, it is usually best to have everything in writing. That way there are no misunderstandings.

 

I appreciate it, shadowsknight.

 

Thank you Gman for the info , just trying to move in a different direction. Hopefully I can turn this into a long term contract. Wish me luck.

 

Good luck, OnTime. Keep us posted.