Key Questions for Logistics Service Providers to Answer When Negotiating Contracts

Freight Forwarders and Third Party Logistics Providers play an important role in the supply chain – and the job is quite complex. Often there are more questions than answers particularly as it relates to negotiating contracts.

?As a non-asset logistics provider, is your role properly classified? Are you assuming liability for care and if so how much?

?Is the coverage consistent with that of the carrier? Do you have a nuanced understanding of your insurance program and that of the underlying carriers? Can you explain it to your attorney so they can revise contract terms as needed? ?

?For example, what about indemnity clauses in an agreement? There are perfect world scenarios, and often, life’s not perfect.

?This requires a nuanced understanding of your insurance program and that of the underlying carriers. It’s important to know if you have contingent coverage that will respond to a claim being made against you when the carrier’s insurance fails to respond to a loss. ?

?Also, it’s important to know if you have your own separate coverage for liabilities incurred as a forwarder, and if so, will that coverage respond to any liability you assume under a contract? Does the contractual liability need to be approved by underwriters?

?These are all key questions that come up when negotiating and operating under MSAs and Shipper Contracts.

?It’s a complicated topic and requires expert guidance.

?We cover these scenarios and much more in our webinar called “MSA & Shipper Contracts. Strengthen Your Position and Profitability.”

Check out the replay here: ?https://ow.ly/PmJC50FALOd