FreightAI

Terms of Service

Effective Date: March 22, 2026

Last Updated: March 22, 2026

Welcome to FreightAI ("we," "our," or "the Platform"). By accessing or using FreightAI at freightai.systems, you agree to be bound by these Terms of Service ("Terms"). If you do not agree to these Terms, do not use the Platform.

1. Overview of Services

FreightAI is an AI-powered freight brokerage platform that connects shippers with motor carriers for the transportation of goods across the United States. Our services include AI-generated freight quotes, automated carrier matching, real-time shipment tracking, document management, payment processing, and market intelligence data products.

FreightAI operates as a licensed freight broker. We do not own, operate, or control any motor vehicles or employ any drivers. All transportation services are provided by independent motor carriers.

2. Eligibility and Account Registration

You must be at least 18 years of age and have the legal authority to enter into binding contracts to use the Platform. When registering an account, you agree to provide accurate, current, and complete information. You are responsible for maintaining the confidentiality of your account credentials and for all activity that occurs under your account.

Carrier accounts require valid USDOT and MC numbers, active operating authority, and adequate insurance coverage as verified through FMCSA, Highway, and Carrier411 databases. Email verification is required for all new accounts before access is granted.

3. User Roles and Responsibilities

Shippers

Shippers are responsible for providing accurate shipment information including origin, destination, weight, dimensions, freight type, and any special handling requirements. Shippers agree to have freight ready for pickup at the scheduled time and to pay all charges associated with their shipments, including any applicable expedite service fees.

Carriers & Owner-Operators

Carriers and owner-operators must maintain active operating authority, valid insurance, and compliance with all applicable FMCSA regulations throughout their use of the Platform. Carriers agree to transport freight in accordance with the rate confirmation and to provide real-time status updates during transit. Owner-operators (carriers who also drive) receive a combined dashboard experience.

Drivers

Drivers must hold a valid Commercial Driver's License (CDL) and comply with all Hours of Service (HOS) regulations. Drivers agree to follow delivery instructions, maintain communication through the Platform, and provide proof of delivery upon completion.

Warehouses

Warehouse operators are responsible for maintaining accurate dock availability, processing deliveries in a timely manner, and providing accurate receiving documentation.

4. Pricing, Fees, and Payment Terms

4.1 Brokerage Fee

FreightAI charges a flat brokerage fee of 3.75% on each transaction. This fee is included in the total rate quoted to shippers. Carriers receive the remaining balance after the brokerage fee is deducted. All rates are quoted in US Dollars.

4.2 Expedite Service Fee

Shipments requiring expedited handling are subject to an additional Expedite Service Fee, which is separate from the standard 3.75% brokerage fee. Expedite fees are calculated based on the urgency of the shipment:

  • Standard (3+ days before pickup): No expedite fee — standard 3.75% brokerage fee only
  • Priority (1-2 days before pickup): Additional 2% expedite service fee (5.75% total)
  • Same-Day: Additional 4.25% expedite service fee (8% total)

Expedite fees are disclosed at the time of quoting and are clearly itemized on all rate confirmations and invoices.

4.3 Quick Pay

Carriers may opt into Quick Pay for accelerated payment processing (1-2 business days instead of standard ACH timing). Quick Pay incurs an additional fee of 1.5% of the carrier payout amount. When Quick Pay is active, the total deduction from the carrier's gross rate is 5.25% (3.75% brokerage fee + 1.5% Quick Pay fee). Quick Pay can be enabled or disabled at any time from the carrier settings page.

4.4 Payment Methods and Processing

Payment processing is handled through Stripe Connect. Carriers may choose from three payment methods:

  • Stripe Connect (Direct Deposit): Payments are transferred directly to the carrier's bank account via Stripe Connect Express. Standard payouts arrive in 2-3 business days. Instant payouts to a debit card are available at a fee of 1.5% of the payout amount.
  • Factoring Company: Carriers may designate a factoring company to receive payment on their behalf. FreightAI will remit payment to the designated factoring company. The 3.75% brokerage fee is deducted before payment to the factoring company.
  • Direct Deposit (ACH): Standard ACH transfer to the carrier's bank account on file.

4.5 Shipper Payment Requirements

Shipper payment requirements vary based on booking timing:

  • 3+ days before pickup: ACH payment accepted (0.8% processing fee, capped at $5)
  • 1-2 days before pickup: ACH payment with credit card on file as backup
  • Same-day booking: Credit card payment required (2.9% + $0.30 processing fee)

All payment processing fees are borne by the party initiating the transaction and are separate from the FreightAI brokerage fee.

4.6 Standard Carrier Payment Timeline

Standard carrier payments are processed via ACH within 2-3 business days after Proof of Delivery (POD) confirmation. Carriers using Quick Pay receive payment within 1-2 business days. Stripe payout fees may apply (ACH: up to $5 cap; Instant: 2.9% + $0.30).

4.7 Enterprise Shipper Payment Terms

Enterprise shippers may be eligible for Net 15 or Net 30 invoicing terms, subject to credit approval. These terms apply to shipper invoicing only and do not affect carrier payout timing — carriers are still paid within 2-3 business days of POD confirmation regardless of shipper invoicing terms. Enterprise payment terms require: (a) a completed credit application, (b) satisfactory credit check results, (c) a pre-funded deposit equal to two weeks of estimated freight spend, and (d) a signed Enterprise Service Agreement. Credit limits are set per shipper and reviewed quarterly.

5. Carrier Verification and Compliance

FreightAI performs triple-layer carrier verification through FMCSA SAFER, Highway, and Carrier411 databases. This verification includes operating authority status, insurance coverage, safety ratings, and compliance history. Carriers with unsatisfactory safety ratings, revoked authority, or inadequate insurance will be removed from the Platform.

While we make reasonable efforts to verify carrier credentials, FreightAI does not guarantee the accuracy of third-party verification data and is not liable for actions taken by carriers outside the Platform.

6. Double-Brokering Prohibition

Double-brokering is strictly prohibited on the FreightAI platform. Carriers who accept loads through FreightAI must transport the freight using their own equipment and drivers. Re-brokering, re-tendering, or assigning loads to third-party carriers without explicit written consent from FreightAI and the shipper is a violation of these Terms and will result in immediate account termination, forfeiture of pending payments, and potential legal action. FreightAI employs carrier identity verification, GPS tracking, and load monitoring to detect and prevent double-brokering.

7. Proof of Delivery and Payment Release

Carrier payment is not released until Proof of Delivery (POD) has been uploaded and verified through the Platform. POD verification is automated through our document scanning system. If automated verification fails, manual review will be completed within 2 business hours during business hours (Monday-Friday, 8 AM - 6 PM ET). Carriers are responsible for uploading clear, legible POD documentation promptly upon delivery completion.

8. Referral Program

FreightAI offers a carrier referral program. Carriers may earn referral credits by inviting other carriers to join the Platform. Referral credits are applied to the referring carrier's account after the referred carrier completes their first load. Referral program terms, credit amounts, and eligibility requirements are subject to change. Abuse of the referral program, including self-referrals or fraudulent referrals, will result in forfeiture of credits and potential account suspension.

9. Market Intelligence and Data Products

FreightAI may offer market intelligence products including lane rate reports, carrier performance benchmarking, and seasonal demand forecasting. By using the Platform, you consent to the aggregation and anonymization of transaction data for the purpose of generating market intelligence products. No individually identifiable business data will be disclosed without explicit consent. Users may opt out of data contribution for market intelligence products through their account settings, though this may limit access to certain features.

10. Limitation of Liability

FreightAI acts as a freight broker and intermediary. We are not a motor carrier and do not assume liability for loss, damage, or delay of freight during transportation. Cargo claims should be filed directly with the responsible carrier in accordance with the Carmack Amendment (49 U.S.C. § 14706).

To the maximum extent permitted by law, FreightAI's total liability for any claim arising from use of the Platform shall not exceed the brokerage fees paid by you in the twelve (12) months preceding the claim.

11. Insurance Requirements

FreightAI maintains Errors & Omissions (E&O) insurance and contingent cargo insurance as part of our broker obligations. Carriers are required to maintain the following minimum insurance coverage:

  • General Liability: $1,000,000 per occurrence
  • Auto Liability: $1,000,000 per occurrence (or as required by FMCSA for your operating authority class)
  • Cargo Insurance: $100,000 minimum (higher limits may be required for high-value freight)
  • Workers' Compensation: As required by applicable state law

Carriers must upload proof of insurance during onboarding and maintain current certificates on file. FreightAI monitors insurance expiration dates and will suspend carrier accounts with lapsed coverage.

12. Intellectual Property

All content, software, algorithms, and technology on the Platform are owned by FreightAI and protected by intellectual property laws. You may not copy, modify, distribute, or reverse-engineer any part of the Platform without prior written consent.

13. Prohibited Conduct

You agree not to: (a) provide false or misleading information; (b) use the Platform for any unlawful purpose; (c) attempt to circumvent the Platform to arrange direct transactions; (d) engage in double-brokering without disclosure; (e) interfere with the Platform's operation or security; (f) use automated tools to scrape data from the Platform; (g) manipulate ratings or reviews; or (h) share account credentials with unauthorized parties.

14. Termination

We may suspend or terminate your account at any time for violation of these Terms, fraudulent activity, or at our discretion. You may close your account at any time by contacting us. Termination does not relieve you of obligations incurred prior to termination, including outstanding payments.

15. Dispute Resolution

Shipment-related disputes should first be filed through the Platform's built-in dispute resolution system. All disputes are reviewed and resolved by FreightAI administrators. For disputes not resolved through the Platform, parties shall engage in good-faith negotiation. If unresolved, disputes shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association. Class action waivers apply to the fullest extent permitted by law.

16. Changes to Terms

We reserve the right to modify these Terms at any time. Material changes will be communicated via email or Platform notification at least 30 days before taking effect. Continued use of the Platform after changes take effect constitutes acceptance of the updated Terms.

17. Governing Law

These Terms are governed by the laws of the United States and applicable state law, without regard to conflict of law principles. Federal transportation regulations, including those administered by FMCSA, apply to all brokerage activities conducted through the Platform.

18. Contact

For questions about these Terms, contact us at:

FreightAI
Email: [email protected]
Website: freightai.systems