FLS - Revised Carrier Contract

AccountsReceivable@DRC

AccountsReceivable@DRC

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Mar 25, 2008
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We just completed and signed our 'carrier agreement' with FLS back in the Spring. I start getting emails from agents that they need it redone as they have made 'some changes' to their contract.

First request came in last Friday...of a long weekend...I told them there was NO WAY this contract was being reviewed and signed that day - more like the following week....

After asking the agent today what changes were made to the contract from the one we just signed 4 months ago - to the one they need redone all over again. Reply..."some wording".

Just a heads up to you all - there were MAJOR changes to their contract. And of course none in favor of the carrier. Take your time and read it all over. Don't compare your previous copy to the new one. I started doing that and noticed so many additional subsections that weren't included in our previously signed one.

Treat this as a NEW CONTRACT and don't be afraid to cross things out that you don't agree with.
 
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If any of you would email a copy I would be very grateful / I have him as a competitor with a major corporation and don't think they would be too happy to hear that one of their brokers is using shady tactics to screw carriers / This could damage their reputation and no way will they accept this kind of garbage / email to route117@hotmail.com
 
You definitely need to read it over....I crossed off quite a bit in terms of payment, claims and what the carrier is responsible for. These contracts are getting a bit much...and I agree chica123 - way too time consuming to read. And the agents bug and bug for it - as you noted - so dispatch or 'anyone' in the organization just initials, signs and sends it back. Don't do that in this case....you just might be sorry you didn't take that extra 10 minutes to review and cross out!
 
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The contract from 4 months ago had alot of questionables, mostly on claims and right to deduct from your payment should you have a claim. We have a situation right now that driver got a clean bill of lading, but receiver was upset due to the poor packaging which he said wasn't the drivers fault. Receiver made claim to Shipper, who made claim to FLS which came back to us. I had scratched that part of the contract out about deducting damages from payment. We will see how this plays out. Strange that the claim is for exactly $100 more than our freight bill was. Is the $100 fls's brokerage fee??
 
Not that I'm a fan of FLS ... but if you ever really looked at a Ryder, Transplace, and some other big 3PL contracts you wouldn't like them either. I agree that you have to redline the contracts and just work something out in most cases.

My guess is that FLS has come up with some liability issue and is lawyering up ... or they are for sale, in which case they are also 'lawyering up'.
 
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Excellent read....and also scary that an "inhouse" transportation contract could trump the law....A perfect example of having to watch what you sign for....perfect example....

Thanks bull958 for your timely post. Great addition to this thread.
 
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The email has the typical confidentiality disclaimer. People might be opening themselves to a bit of risk by forwarding it on G-Roch and Neat-Lion
 
Wouldn't it be great if everyone has the same 'terms'. Oh wait, that would require some for of regulation.

Our terms are a 1 pager, in plain English rather then legalese, and I don't usually get too upset when a supplier crosses out one (or more clauses). Of course I only actually 'break out' the terms once or twice a year when it's obvious a carrier we were trying out for the first time never intended to deliver our shipment at the agreed date or in the condition it was picked up.

Less than .002% of the time.

Call me lucky. I prefer Mike.

Keep well,
Mike
 
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By its very nature, a "contract" will always favour the party who requests that you become a party to it. In a perfect world, we would all be agreeable to sign a 1 page, plain English version as suggested by Mike Jr. Unfortunately, for someone trying to "wiggle out" of their contractual obligations, the 1 page, plain English model would likely provide them with the means to do so once the matter was brought before the courts. If the business that results from entering into any contract is substantial, spend the bucks and have your lawyer review it and make amendments as required. You can be assured that the party presenting the contract for you to sign, has done exactly that!
 
chica123 said:
The email has the typical confidentiality disclaimer. People might be opening themselves to a bit of risk by forwarding it on G-Roch and Neat-Lion
Click to expand...

yeah I figured as much, no worries, it's probably very similar to a lot of other big contracts.

ours is only a 2 pager, simple & straight forward.
 
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AccountsReceivable@DRC said:
You definitely need to read it over....I crossed off quite a bit in terms of payment, claims and what the carrier is responsible for. These contracts are getting a bit much...and I agree chica123 - way too time consuming to read. And the agents bug and bug for it - as you noted - so dispatch or 'anyone' in the organization just initials, signs and sends it back. Don't do that in this case....you just might be sorry you didn't take that extra 10 minutes to review and cross out!
Click to expand...
I just signed the contract. Glad I took the time to read it first!
Let's just say I did a LOT of crossing out and re-writing. Wow...........my favourite (and immediately crossed out) parts were ".....Broker shall have the right to inspect Carrier's records and books, during regular business hours, upon ten (10) days prior written notice." AND "The terms and conditions of this contract shall govern and supersede any contract terms and conditions that may be prescribed by Canadian and provincial laws or regulations, as well as any bills of lading, delivery receipts, Carrier confirmation forms or other shipping documents."
Isn't there some kind of law somewhere that states that totally one-sided contracts are void, anyway?

Just to be fair, FLS isn't the only broker with ridiculous contracts.
 
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The only contracts of any kind that are fair to both are the ones that both parties write. Any time only one of the parties has a say in the content of the agreement you can be assured that it will be extremly one sided in favour of the one who wrote it.
Only adivice is, read it, read it again and dont be shy about crossing off anything that you dont agree with.
And no, there is no law that states that one sided contracts are void, except the law of common sense that says dont sign it if you dont think it is in your best interest to do so.
 
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"The terms and conditions of this contract shall govern and supersede any contract terms and conditions that may be prescribed by Canadian and provincial laws or regulations, as well as any bills of lading, delivery receipts, Carrier confirmation forms or other shipping documents."

Is this even legal?
 
Yes should be legal, if you agree to terms, the government can't change it by their law, it's a deal you struck up with your customer/supplier
 
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Out of pure curiosity....... has anyone who modified the new FLS contract actually been "renewed" in their system? I made some modifications and omissions and I am being told that it may not be accepted with the changes. Even someone I talked to who works at FLS admitted that some of the modifications I made are reasonable.
Has anyone followed up to make sure they have been set up in FLS' system?
 
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