A carrier agreement is essentially a requirement by the United States that is important if you want to transport household goods across the country. A Carrier Agreement can be thought of as a contract for household goods which allows motor carriers to transport household goods to customer across the country. A carrier agreement is essentially entered into by a household goods shipper and a motor carrier company.
Why is a carrier agreement important and how does it take place?
Consider a situation in which you want to purchase household goods from a certain retailer and contact carrier companies and let them know about the approximate weight of the goods, where they are to be picked up from, and where are they supposed to be dropped off at, and how much would you be willing to pay them for their services. The carrier can then either agree or disagree to your price, you both can come to a mutual agreement and meet down the middle at a final price. The carrier can then purchase your goods and arrive at your doorstep, but you can say that you have changed your mind and do not want to purchase the goods anymore. The carrier in this case would be stuck with a truck full of furniture that he/she has no interest in.
A carrier agreement saves both of these parties the embarrassment and is entered into by the household goods shipper and the motor carrier. The household goods shipper, upon hearing interest from a potential customer or upon receiving an online payment for their goods seeks a motor carrier and offers them a certain amount of money to carry goods from point A to point B. If the carrier agrees at the states price, the carrier agreement takes place.
A sample carrier agreement features the following pieces of information: the carrier’s name address and MC number; the customer’s name and address; the date of the carrier agreement; the total invoice; information about the total liability and insurance.
Why is a carrier agreement important?
A carrier agreement is important because it then gives the carrier a sort of assurance that they will be paid for their services. If a carrier agreement is not performed, you cannot haul household good shipments and cannot transport them to the customers. Other than being a legal requirement by the Government of the United States, they are also a necessity for sellers of household goods. Also, carriers need to know with certainty the amount of money that they will be paid and the amount and type of liability they will be exposed to.
Different types of household goods carriers
Essentially there are two types of household goods carriers in all carrier agreements: private carriers and common carriers. Private carriers operate under special agreements and transport the goods on the shipper’s vehicle itself and do not have any extra charges. However, common carriers are actually businesses that specialize and are experienced in shipping household goods. These carriers can be on the road, use railways or airways for their transportation purposes. Irrespective of the carrier you choose both of them perform the same core job at the end of the day.
Difference between the household goods shipper and household goods carrier?
It is important that one does not confuse themselves between the two, as both of them are two separate entities. A household goods shipper is essentially a company that makes and sells household goods. The household goods carrier is the party that only ships the goods to the customers.
A carrier agreement is important for all parties involved in a household goods shipping transaction: the household goods shipper, the motor carrier, and the customers themselves. This is because a carrier agreement benefits all parties involved and assures each of them something or the other: the household goods shipper is assured that their goods will be shipped to the same location; the motor carrier is assured that they will receive a certain payment for their services; the customer is assured that they will receive their goods at a certain date and that they will be safe from any damages.