This Dispatch Service Agreement (the "Agreement") is entered into between JX Logistic ("Dispatcher") and the motor carrier identified on the signature page ("Carrier"). By signing, Carrier engages Dispatcher to provide the services described below on the terms set out in this Agreement.
1. Scope of Services
- Source and book freight on Carrier's behalf using its operating authority.
- Negotiate rates with brokers and shippers.
- Vet brokers, including credit and authority checks.
- Coordinate rate confirmations, BOLs, and supporting paperwork.
- Provide ongoing dispatch support during agreed hours.
2. Independent Contractor Relationship
Dispatcher acts as Carrier's authorized agent for the limited purpose of booking loads. Dispatcher is not a motor carrier, broker, or freight forwarder. Carrier retains sole control over its drivers, equipment, and operations.
3. Carrier Documentation
Prior to dispatch, Carrier shall provide:
- Active operating authority (MC/DOT or CVOR).
- Certificate of insurance naming required coverages and limits.
- W-9 / W-8BEN or equivalent tax documentation.
- Voided cheque or direct deposit form for settlement reconciliation.
- Signed Limited Power of Attorney where required by brokers.
4. Fees
Carrier agrees to pay Dispatcher a service fee equal to eight percent (8%) of gross line-haul revenue, calculated on each load booked by Dispatcher. Fuel surcharges, accessorials, and detention paid directly to Carrier are excluded unless otherwise agreed in writing.
5. Invoicing and Payment
Dispatcher will invoice Carrier weekly for services rendered. Invoices are due on receipt. Amounts unpaid after seven (7) days may incur a 1.5% monthly service charge and are grounds for suspension of service.
6. Carrier Responsibilities
- Operate in compliance with all applicable safety and hours-of-service rules.
- Maintain insurance coverage at all times during the term.
- Promptly communicate load status, delays, and issues to Dispatcher.
- Honor booked loads and all broker/shipper requirements.
7. Non-Circumvention
For the duration of this Agreement and twelve (12) months thereafter, Carrier agrees not to directly solicit business from brokers, shippers, or consignees first introduced by Dispatcher without Dispatcher's written consent.
8. Indemnification
Carrier shall defend, indemnify, and hold harmless Dispatcher and its personnel from any claims, damages, or losses arising out of Carrier's transportation services, equipment, employees, or contractors.
9. Limitation of Liability
Dispatcher's aggregate liability under this Agreement shall not exceed the total service fees paid by Carrier in the three (3) months preceding the event giving rise to the claim. Dispatcher is not liable for cargo loss, damage, detention, or chargebacks.
10. Term and Termination
This Agreement begins on the date signed and continues month to month. Either party may terminate with seven (7) days' written notice. Outstanding fees survive termination.
11. Governing Law
This Agreement is governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein.
12. Entire Agreement
This Agreement, together with the signed signature page and any written amendments, constitutes the entire agreement between the parties and supersedes any prior understandings.
This document is a summary template and not legal advice. The binding agreement is the version signed by both parties.