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A Freight Forwarding Agreement is a legal contract between a business and a freight forwarder who manages the shipping and logistics of goods across the Philippines and internationally. It spells out how the forwarder will handle cargo transportation, customs clearance, warehousing, and related services on behalf of their client.

Under Philippine maritime and trade laws, these agreements must clearly outline liability limits, insurance requirements, and service fees. They're especially important for businesses moving goods through major ports like Manila and Cebu, as they establish the forwarder's responsibilities for documentation, permits, and compliance with Bureau of Customs regulations.

Use a Freight Forwarding Agreement when you need to ship products regularly through Philippine ports and want professional help managing the logistics. This agreement becomes essential once your business starts handling frequent shipments, dealing with customs requirements, or moving goods internationally through major hubs like Manila or Subic Bay.

The agreement is particularly valuable when coordinating complex supply chains, managing time-sensitive deliveries, or navigating strict Bureau of Customs requirements. Companies expanding their distribution networks or starting import/export operations need this document to establish clear responsibilities, protect against liability issues, and ensure compliance with Philippine shipping regulations.

• Standard Single-Shipment Agreement: Covers one-time or occasional freight movements, with specific dates and cargo details
• Annual Service Contract: Establishes long-term rates and terms for regular shipments throughout the year
• Multi-Modal Agreement: Coordinates different transportation methods across sea, air, and land within the Philippines
• Customs Brokerage Integration: Combines forwarding services with dedicated customs clearance handling
• Door-to-Door Service Agreement: Covers complete logistics from pickup to final delivery, including warehousing and distribution

• Freight Forwarders: Licensed logistics companies that handle cargo movement, customs clearance, and documentation across Philippine ports
• Importers/Exporters: Businesses shipping goods internationally who need professional logistics support
• Legal Teams: Corporate lawyers who draft and review agreements to ensure compliance with Philippine maritime laws
• Customs Brokers: Licensed professionals who coordinate with forwarders on customs requirements and clearances
• Company Directors: Business leaders who sign and authorize these agreements on behalf of their organizations

• Shipping Details: Gather specific information about cargo types, volumes, routes, and delivery timeframes
• Service Scope: Define which services you need - transportation, warehousing, customs clearance, or door-to-door delivery
• Company Information: Prepare complete business details, tax identification, and customs registration numbers
• Insurance Requirements: Determine coverage needs and liability limits based on cargo value
• Payment Terms: Outline rates, additional fees, payment schedules, and currency preferences
• Compliance Check: Review Bureau of Customs requirements and Philippine maritime regulations

• Party Details: Complete legal names, addresses, and contact information of both forwarder and client
• Service Scope: Detailed description of logistics services, routes, and handling requirements
• Liability Terms: Clear limits of liability and insurance requirements under Philippine maritime laws
• Payment Structure: Comprehensive fee schedule, payment terms, and additional charge conditions
• Duration Clause: Contract period, renewal terms, and termination conditions
• Compliance Section: References to relevant Philippine customs and shipping regulations
• Dispute Resolution: Jurisdiction choice and arbitration procedures under local law

A Freight Forwarding Agreement differs significantly from an Agency Agreement, though both involve representation of business interests. Here's how they compare:

• Scope of Services: Freight forwarding specifically covers logistics, shipping, and customs clearance, while agency agreements can cover any type of business representation
• Liability Structure: Freight forwarders assume specific cargo-related risks and insurance requirements under Philippine maritime laws, whereas agents typically have broader but less specialized liability terms
• Regulatory Framework: Freight forwarding must comply with Bureau of Customs and maritime regulations, while agency agreements follow general commercial law principles
• Duration and Terms: Freight forwarding often involves specific shipments or fixed periods, but agency agreements typically establish ongoing business relationships