¶¶Òõ¶ÌÊÓƵ

A Freight Forwarding Agreement spells out the terms between a company that needs to ship goods and a freight forwarder who handles the logistics. It covers how the forwarder will arrange transportation, handle customs paperwork, and manage the movement of cargo across borders or between locations.

These agreements protect both parties by clearly defining responsibilities, insurance requirements, and liability limits under U.S. shipping regulations. Good freight forwarding contracts include specific details about tracking services, storage arrangements, delivery timelines, and payment terms - helping businesses move their products safely while staying compliant with federal transportation laws.

Use a Freight Forwarding Agreement when your business needs to move goods internationally or across complex supply chains. This contract becomes essential once you're shipping enough volume that managing logistics in-house isn't practical, or when you need specialized expertise for customs clearance and international shipping regulations.

The agreement is particularly important before starting regular shipments with a new freight partner, expanding into new markets, or handling high-value or sensitive cargo. Having it in place protects your business from liability issues, unexpected costs, and customs delays while ensuring clear communication about tracking, storage, and delivery expectations.

• Basic Single-Shipment Agreements: Cover one-time or occasional shipping needs with standard liability terms and basic service requirements
• Comprehensive Multi-Year Contracts: Include volume commitments, detailed performance metrics, and preferred pricing for regular shippers
• Specialized Cargo Agreements: Feature extra provisions for dangerous goods, temperature-controlled items, or high-value shipments
• Full-Service Logistics Contracts: Combine freight forwarding with warehousing, distribution, and supply chain management
• Industry-Specific Forms: Tailored for sectors like pharmaceuticals, retail, or manufacturing with unique compliance requirements

• Freight Forwarders: Licensed logistics companies that arrange transportation, handle customs clearance, and manage shipping documentation
• Shipping Companies: Businesses needing to move goods domestically or internationally, from small exporters to large manufacturers
• Corporate Legal Teams: Draft and review agreements to ensure compliance with transportation laws and protect company interests
• Customs Brokers: Often work alongside forwarders to handle specific import/export requirements and documentation
• Insurance Providers: Offer cargo coverage and verify liability terms within the agreement

• Shipping Details: Gather specifics about cargo types, volumes, routes, and frequency of shipments
• Service Requirements: List needed services like customs clearance, warehousing, or special handling
• Insurance Coverage: Determine liability limits and required cargo insurance levels
• Timeline Expectations: Define delivery schedules, transit times, and any time-sensitive requirements
• Cost Structure: Outline rates, additional fees, payment terms, and billing procedures
• Documentation Process: Specify required shipping documents, tracking systems, and reporting methods

• Service Description: Detailed scope of freight forwarding services, routes, and handling requirements
• Liability Terms: Clear limits of liability, insurance requirements, and damage claim procedures
• Payment Terms: Rates, fees, payment schedules, and conditions for rate adjustments
• Performance Standards: Delivery timeframes, service levels, and quality metrics
• Force Majeure: Circumstances excusing performance delays or failures
• Compliance Clauses: References to relevant shipping regulations and customs requirements
• Termination Rights: Conditions for ending the agreement and wind-down procedures

A Freight Forwarding Agreement differs significantly from an Agency Agreement, though both involve third-party services. While freight forwarding deals specifically with shipping logistics and cargo handling, an Agency Agreement creates a broader representative relationship where one party acts on behalf of another.

• Scope of Authority: Freight forwarders have limited authority focused on shipping logistics, while agents often have broader powers to make business decisions and bind their principals
• Service Focus: Freight forwarding centers on transportation, customs, and cargo handling, while agency relationships can cover sales, marketing, or general business representation
• Liability Structure: Freight forwarders typically have specific cargo-related liability limits, while agents face different liability standards based on their fiduciary duties
• Regulatory Framework: Freight forwarding must comply with transportation and customs laws, while agency agreements follow general contract and commercial representation laws