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What should your broker-shipper agreement say about the number of shipments you will broker for the client?

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Final answer:

A broker-shipper agreement should detail the number or conditions related to the number of shipments to be brokered, which can vary between exclusive and non-exclusive agreements. The agreement addresses performance, payment terms, and contingencies, ensuring clarity and risk mitigation.

Step-by-step explanation:

Your broker-shipper agreement should specify the number of shipments you will broker for the client, although detailing the exact number can vary depending on the agreement type. It may include a minimum number of shipments to be brokered or terms about exclusivity or non-exclusivity of services. This ensures clear expectations and obligations for both parties involved.

For a non-exclusive agreement, the number of shipments might not be as rigid, giving leeway for the shipper to engage with other brokers. However, an exclusive agreement may detail minimum load requirements to secure a committed working relationship. Additionally, the agreement may specify conditions for increasing or decreasing shipment numbers to reflect changes in demand or capacity.

It is also prudent to include clauses that address performance expectations, terms of payment, and what happens if either party cannot fulfill their obligations (such as a shortfall in shipment numbers). These aspects help mitigate risk and provide a framework for resolving disputes and adjusting commitments as necessary.

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