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What is a trailer interchange agreement?

How does a trailer interchange agreement work? Why would it be needed?

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Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“A trailer interchange agreement is when a shipment of goods or merchandise is being transferred from one trucker to another in order to complete the delivery. The agreement simplifies the process of transfer by stating the:
  • Location
  • Company names
  • Fees
In most cases, you will need trailer interchange insurance, which is a type of
liability coverage
.
When items are hauled long distances, there is a good chance that the truckers would need to hand off the trailer more than once in order to get to the destination within the required time limit. This can happen for a few reasons.
Delivery trucks are also part of a fleet that only works within a certain region of the country. For example, let’s say a trucker picks up a shipment from New Orleans, which is in the Southeastern region, and it has to be delivered to Wyoming, which is in the West region.
If the trucker is contracted only for regional deliveries as opposed to national deliveries, there would be two switch-offs and trailer exchange agreements to get the shipment from region to region.
Although this type of agreement isn’t a necessity for all drivers, it certainly emphasizes safety for all truckers.
Safe driving!”
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