Freight Forwarding Agreement
A Freight Forwarding Agreement is a contract between a shipper (often an exporter or importer) and a freight forwarder, who is responsible for arranging the transportation, logistics, and sometimes customs clearance of goods from one location to another - domestically or internationally. It is important because it clearly defines the roles, responsibilities, liabilities, and payment terms related to the handling, storage, and shipment of goods. This helps minimise disputes, ensures legal compliance (especially for international trade), and allocates risk appropriately between parties involved in the supply chain.
Free Freight Forwarding Agreement Template
Use this free template as a starting point for a freight forwarding arrangement. Copy and customise it to suit your shipment, jurisdictions, and trading terms.
FREIGHT FORWARDING AGREEMENT
Date: [Date of agreement]
Client (Shipper): [Full legal name], a company incorporated in [Jurisdiction] with registered address at [Address] ("Client")
Forwarder: [Full legal name], a company incorporated in [Jurisdiction] with registered address at [Address] ("Forwarder")
1. Scope of Services
The Forwarder shall arrange the following services on behalf of the Client:
- Transportation of goods from [Origin] to [Destination] by [Sea / Air / Road / Rail / Multimodal]
- Customs clearance and documentation
- Cargo handling, warehousing, and consolidation as required
- [Insurance arrangement / Other services]
The Forwarder acts as the Client's agent in arranging transport and may subcontract carriage to third-party carriers on standard industry terms.
2. Cargo Description
- Description of goods: [Description]
- Quantity / weight / volume: [Details]
- Packaging: [Type]
- Estimated value: [Currency and amount]
- Special handling: [Hazardous / Temperature-controlled / Fragile / None]
3. Fees and Payment Terms
- Total service fee: [Currency and amount], detailed in the attached quotation dated [Date]
- Payment terms: [Net 30 / On collection / Other]
- Currency: [Currency]
- Payment method: [Bank transfer / Other]
Additional charges (demurrage, extended storage, customs penalties, etc.) shall be invoiced separately at cost plus [X]% handling fee.
4. Documentation and Compliance
The Client shall provide accurate and timely:
- Commercial invoice and packing list
- Export and import licences as required
- Certificates of origin and other regulatory documents
- HS codes and accurate goods description
The Client warrants that the goods are not prohibited, dangerous, or restricted unless expressly declared in writing.
5. Liability and Insurance
- The Forwarder's liability for loss, damage, or delay is limited to [Amount] per shipment or as set out in the applicable trading conditions incorporated by reference (e.g. BIFA, FIATA).
- The Client is responsible for arranging cargo insurance unless expressly agreed otherwise in writing.
- The Forwarder is not liable for loss caused by force majeure, inherent defects in the goods, or events outside its reasonable control.
6. Delivery Terms (Incoterms)
Delivery shall be on [EXW / FCA / FOB / CIF / DAP / DDP / Other] terms in accordance with Incoterms® 2020.
7. Term and Termination
- This Agreement applies to shipments accepted during the period from [Start date] to [End date], or until terminated by either party with [30] days' written notice.
- Termination shall not affect obligations relating to shipments already in transit or undischarged liabilities.
8. Confidentiality
Each party shall keep confidential all non-public information received from the other in connection with this Agreement and shall use it only for the purpose of performing this Agreement.
9. Governing Law and Jurisdiction
This Agreement is governed by the laws of [Jurisdiction]. Disputes shall be resolved by the courts of [Jurisdiction], without prejudice to any arbitration clause separately agreed.
Signatures:
For and on behalf of the Client: _ Date: _
Name: _ Position: _
For and on behalf of the Forwarder: _ Date: _
Name: _ Position: _
This is a basic template provided for informational purposes. For a professionally generated and legally tailored document, use Bind's contract automation platform.
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