Transportation Intermediaries Association Introduces Model Broker-Carrier Contract; Fair and Balanced Contract Brings Industry-Leading Benefits and Support to Both Parties

ALEXANDRIA, Va.--June 5, 2006--The Transportation Intermediaries Association (TIA), the leading trade association of third party logistics companies, has unveiled a Model Broker-Carrier Contract to promote best practices between brokers and carriers. The Model Contract is available on TIA's website (www.tianet.org) beginning today.

After previously helping to successfully create and execute the NITL/TIA Shipper-3PL Contract, which became an industry standard contract, TIA formed a committee comprised of an equal number of asset-based and non-asset-based TIA members to develop the TIA Model Broker-Carrier Contract.

"Our sole objective for the TIA Model Broker-Carrier Contract was to create a fair and balanced template contract that would raise the standard and suit the best interests of both brokers and carriers," said Robert Voltmann, TIA's president and CEO. "Carriers and brokers can both safely sign the TIA Model Broker-Carrier Contract without fear of hidden provisions. We believe, therefore, that the TIA Model Broker-Carrier Contract will make both parties more efficient."

"As president of a carrier, having a standardized contract will create efficiencies and save me a great deal of time," said Rick Staller, President of Bee Trucking, Inc. and Chairman of the TIA Motor Carrier Conference. "This contract covers two of the big issues for carriers: it obligates brokers to pay even if they don't collect from the shipper and allows for recourse if the broker doesn't pay within an agreed time frame. As such, the TIA Model Broker-Carrier Contract offers better protection to the carrier than any previous contract."

The TIA Model Broker-Carrier Contract provides these key benefits for both carriers and brokers:

-- Broker Must Pay: Provides for carrier to receive payment from broker, regardless if broker collects payment from its customer.

-- Recourse to the Shipper: Provides the carrier with recourse to the shipper for payment should the broker not pay the carrier.

-- Recognition: Provides carriers with a recognized document for working with brokers.

-- Ease of Use: The contract is easily accessible on the TIA website in both an interactive PDF format and a text format.

-- Provides for Payment to Performing Carriers: Provides for a prohibition against unauthorized re-brokering of the load. The model also provides for payment directly to the performing carrier should the broker find out that the load has been re-brokered without permission and before payment has been made.

-- Dispute Resolution: Provides for arbitrating disputes with the choice of arbitration forum open to the parties to negotiate.

"This model contract was developed by an active committee of carriers and brokers, which has helped to make it fair and balanced," said Alec Gizzi, the Chair of the Broker-Carrier Contract Committee and President of JBS Logistics, Inc.

TIA is the first organization to provide a Model Broker-Carrier Contract for the industry, spending more than a year analyzing the best practices and contracts throughout the industry.

"We wanted this contract to equally represent both parties, so we elicited feedback from every major industry organization. We have incorporated many of the suggestions we received, such as the Recourse and Broker Must Pay clauses," said Voltmann. "We are confident that this contract will become the industry standard."

The TIA will continue to assess and develop new opportunities for improvement within the carrier and broker industries, working with other organizations to establish best practices.

About the Transportation Intermediaries Association (TIA)

TIA is the premier professional and educational organization of the $100 billion third party logistics industry. TIA is the only organization exclusively representing transportation intermediaries of all disciplines doing business in domestic and international commerce. TIA is the voice of transportation intermediaries to shippers, carriers, government officials, and international organizations. TIA members are committed to the highest level of ethics within the industry. TIA is the U.S. member of the International Federation of Freight Forwarder Associations. TIA conducts an annual convention and trade show; an annual marketing conference with leading shippers and carriers; and, provides education, research, and services to help their members succeed. Learn more about TIA and its Model Broker-Carrier Contract at www.tianet.org.