CARRIER AGREEMENT
Motor Carrier Terms | Version 2.0
Approved Transport Group LLC | DBA Approved Auto Transport
USDOT# 9677802 | MC# 45556873 | Grasonville, Maryland
Section 1 — Parties and Broker Role
This Carrier Agreement is entered into between Approved Transport Group LLC, a licensed property broker registered with the FMCSA, and the above-named carrier. Broker arranges motor vehicle transport on behalf of shippers but does not take possession, custody, or control of vehicles at any time. Carrier is an independent contractor and is solely responsible for the safe transport and delivery of all vehicles accepted under this Agreement.
Section 2 — Carrier Qualifications and Compliance
Carrier represents and warrants that at all times: (a) Carrier holds active FMCSA operating authority as a motor carrier of property. (b) Carrier maintains all required federal and state licenses, permits, and registrations. (c) Carrier is not subject to any FMCSA out-of-service order or safety rating of Unsatisfactory. (d) Carrier will immediately notify Broker in writing of any suspension, revocation, or material change to its operating authority, insurance, or safety rating. (e) Carrier's drivers hold valid commercial driver's licenses appropriate for the equipment operated. (f) Carrier complies with all applicable FMCSA hours-of-service regulations. (g) As of the date of each dispatch, no BASIC category score in FMCSA's Compliance, Safety, Accountability system exceeds current FMCSA intervention thresholds. Carrier shall notify Broker immediately — and prior to accepting any new dispatch — if any BASIC category score crosses an intervention threshold at any time during the term of this Agreement. (h) Carrier is the actual operating carrier for all accepted shipments and that its drivers and equipment are under Carrier's direct employment or lease. Any misrepresentation of operating carrier status constitutes fraud, grounds for immediate termination, forfeiture of all payments, and referral to FMCSA.
Section 3 — Insurance Requirements
Carrier shall maintain at minimum: Auto Liability $1,000,000 combined single limit; Cargo Insurance $100,000 per occurrence; General Liability $1,000,000 per occurrence. Carrier shall name Approved Transport Group LLC as an Additional Insured on its cargo and liability policies. Carrier's Certificate of Insurance must be sent directly from Carrier's insurance producer to info@approvedautotransport.com — not forwarded by Carrier. A carrier-emailed PDF is not acceptable. COI must list Approved Transport Group LLC as both Additional Insured and Certificate Holder. Carrier shall provide updated COIs upon renewal and within 24 hours of any material change to coverage. Carrier's cargo deductible shall not exceed $1,000 per occurrence. Any deductible above this amount must be disclosed in writing prior to dispatch and is grounds for Broker to decline the carrier for that shipment.
Section 4 — Dispatch and Acceptance
Carrier accepts a load by confirming electronically or in writing — including email, text message, platform acceptance, or signed rate confirmation. Verbal-only confirmation is not sufficient for dispatch and does not constitute binding acceptance under this Agreement. Each shipment dispatched constitutes a separate agreement incorporating these terms. Carrier shall not broker, re-broker, co-broker, or assign any shipment to another carrier without prior written consent — violation is grounds for immediate termination, forfeiture of payment for the affected shipment, and referral to FMCSA. Carrier shall contact the shipper at least 2 hours prior to pickup to confirm arrival window. Carrier shall not substitute equipment without prior Broker approval.
Section 5 — Bill of Lading and Vehicle Condition
Carrier shall complete a thorough vehicle condition inspection at pickup and document all pre-existing damage on the BOL before taking possession. Carrier shall obtain a signature at pickup and at delivery. Any damage not noted on the pickup BOL and present at delivery is presumed to have occurred in Carrier's care and custody. Carrier shall provide Broker with a copy of the completed BOL within 48 hours of delivery upon request. Carrier shall not release a vehicle at delivery until the consignee has completed their inspection and signed the BOL.
Section 6 — Damage Claims
Carrier is solely liable for damage occurring while in Carrier's care, custody, and control. Carrier shall report any damage, accident, or incident to Broker within 2 hours of occurrence. Carrier shall cooperate fully in processing any damage claim including providing insurance information, driver statements, photographs, and BOL copies within 5 business days. Carrier shall not make any admission of liability or settlement offer without prior written consent from Broker. Carrier's failure to cooperate is grounds for immediate payment withholding and termination. Broker reserves the right to deduct damage amounts from Carrier payment when Carrier's insurer has denied, delayed, or failed to respond to a claim within 30 days of submission, or when Carrier has failed to cooperate within the required timeframe. Carrier's assertion that a claim is disputed does not constitute a bar to Broker's right of deduction under this section.
Section 7 — Payment Terms
COD: Carrier collects payment directly from consignee at delivery — cash, certified check, or money order only. In COD transactions, Carrier acknowledges that Broker's fee is separate from and in addition to any amount collected at delivery. Collection of COD funds by Carrier does not constitute settlement of any broker fee obligation owed to or arranged by Broker. Broker-Pay: Carrier submits invoice with BOL confirmation within 5 business days of delivery; Broker remits payment within the agreed timeframe not to exceed 30 days. Same-Day Pay: Carrier submits delivery confirmation and BOL before end of business on delivery date; contingent on clean delivery with no reported damage. Broker reserves the right to withhold payment pending resolution of any open damage claim. No additional charges, fuel surcharges, or detention fees are authorized without prior written approval. Disputed invoices must be submitted in writing within 10 business days of delivery.
Section 8 — Customer Contact, Confidentiality, and Non-Solicitation
Carrier shall not discuss broker fees, margins, or pricing with shippers or consignees. Carrier shall not solicit Broker's customers for direct transport business — including by accepting direct bookings from any shipper or consignee introduced to Carrier through Broker, whether solicited or unsolicited — during this Agreement and for 12 months following termination. Carrier shall not disclose Broker's shipper information, pricing, or operational details to any third party. All customer complaints and claims shall be directed to Broker. Upon termination of this Agreement for any reason, Carrier shall immediately destroy or return all shipper and consignee contact information obtained through Broker and shall not retain, use, transfer, or disclose such information for any purpose.
Section 9 — Performance Standards
Carrier shall maintain an on-time pickup rate of no less than 90% of confirmed pickup windows. Carrier shall respond to Broker communications within 2 hours during business hours and within 4 hours at all other times while a shipment is active. Carrier shall provide location updates upon request within 1 hour. Repeated failure to meet performance standards is grounds for removal from Broker's active carrier network at Broker's sole discretion.
Section 10 — Prohibited Conduct
Carrier shall not: (a) Re-broker any shipment without prior written consent from Broker. (b) Abandon a vehicle in transit without immediately notifying Broker. (c) Deliver to an address other than stated on the rate confirmation without written authorization. (d) Operate out of compliance with any applicable FMCSA regulation. (e) Misrepresent equipment type, capacity, or condition. (f) Collect payment in excess of the amount stated on the rate confirmation. (g) Contact or negotiate directly with Broker's shippers or consignees regarding pricing, routing, or future shipments. Violation of any item constitutes material breach and grounds for immediate termination and forfeiture of payment for the affected shipment.
Section 11 — Independent Contractor Status
Carrier is an independent contractor. Nothing in this Agreement creates an employment, agency, partnership, or joint venture relationship. Carrier is solely responsible for its employees, drivers, taxes, benefits, and compliance obligations. Broker has no right to control the manner or means by which Carrier performs transportation services, only the result.
Section 12 — Indemnification
Carrier shall indemnify, defend, and hold harmless Approved Transport Group LLC and its members, officers, and agents from any claims, losses, damages, fines, penalties, and expenses including reasonable attorney's fees arising out of or related to: Carrier's performance or non-performance under this Agreement; damage to or loss of vehicles in Carrier's custody; violation of any applicable law or regulation; bodily injury or property damage caused by Carrier or its agents; Carrier's re-brokering of any shipment without authorization; or any misrepresentation of Carrier's operating authority, identity, or insurance status. The foregoing indemnification obligations apply to the fullest extent permitted by applicable law. Nothing in this Section shall require Carrier to indemnify Broker for Broker's own gross negligence or willful misconduct.
Section 13 — Carrier Network Status and Dispatch Discretion
Carrier's inclusion in Broker's active carrier network does not entitle Carrier to any minimum volume of shipments, any guaranteed dispatch frequency, or any continued business relationship. Broker retains sole and absolute discretion to dispatch or decline to dispatch any carrier at any time and for any reason. Pre-dispatch suspension: If Carrier's FMCSA authority lapses, insurance drops, or any BASIC category score crosses an intervention threshold prior to dispatch of an assigned load, Broker may immediately withdraw that dispatch assignment without liability. Post-dispatch, pre-pickup suspension: If Broker receives notification of a BASIC threshold crossing, authority lapse, or insurance change after a load has been dispatched but prior to Carrier taking physical possession of the vehicle, Broker may immediately reassign the shipment to another carrier. In-transit loads: If a threshold crossing or compliance issue is identified after Carrier has taken physical possession of a vehicle, Broker will allow Carrier to complete delivery in the ordinary course. Broker reserves the right to suspend all future dispatches to Carrier upon completion of any in-transit load pending review, and to remove Carrier from its active network at Broker's sole discretion following that review. Broker's decision to suspend or remove a carrier from its active network is not a termination of this Agreement and does not give rise to any claim by Carrier for lost business, lost revenue, or breach of contract.
Section 14 — Termination
Either party may terminate this Agreement with 30 days written notice. Broker may terminate immediately upon Carrier's material breach, loss of operating authority, lapse of required insurance, FMCSA out-of-service order, BASIC score crossing an automatic disqualification threshold, or any prohibited conduct under Section 10. Termination does not relieve either party of obligations for shipments in progress at the time of termination.
Section 15 — Force Majeure
Neither party shall be in breach of this Agreement for failure or delay in performance caused directly by events beyond that party's reasonable control, including but not limited to: acts of God, natural disasters, severe weather events, government orders, labor strikes, fuel shortages, or road closures. The affected party shall notify the other party as soon as practicable. Force majeure does not excuse payment obligations for services already rendered, and does not apply to obligations arising from a party's own negligence, misconduct, or failure to maintain required compliance.
Section 16 — Dispute Resolution and Arbitration
This Agreement shall be governed by the laws of the State of Maryland and applicable federal transportation law. For disputes with a value of $25,000 or less, the parties agree to resolve the matter through binding arbitration under the Commercial Arbitration Rules of the American Arbitration Association before resorting to litigation. The arbitration shall be conducted in Maryland. The prevailing party in any arbitration or litigation shall be entitled to recover reasonable attorney's fees and costs. For disputes exceeding $25,000, the parties consent to the jurisdiction of a court of competent jurisdiction in Maryland.
Section 17 — Entire Agreement
This Agreement, together with any rate confirmation issued by Broker, constitutes the complete agreement between the parties for each shipment. It supersedes any prior oral or written agreements. Amendments must be in writing and signed by both parties. Carrier's acceptance of any rate confirmation constitutes renewed acknowledgment and acceptance of all terms in this Agreement as they exist at the time of that dispatch.