The contracts required in the freight forwarding process

When you use the services of a freight forwarder, a number of contracts will be concluded. These official documents set out the obligations and rights of each party, so that the freight forwarding process runs under the best possible conditions. Find out from this Honexpres article which contracts are required in the freight forwarding process and what you need to pay attention to!

The contracts required in the freight forwarding process

When a client decides to work with a freight forwarder, two contracts need to be concluded:

• a freight forwarding contract between the client and the freight forwarder,
• a transport contract between the freight forwarder and its subcontractors.

Let us look at the two types of contract in turn:

The freight forwarding contract between the client and the freight forwarder

Once you decide to work with a freight forwarder, the first step is to conclude a freight forwarding contract with it. This is the document that will protect your interests. If you are not given the freight forwarding contract to read and sign right from the start, that is a warning sign. Always make sure you begin the forwarding procedures only when you have a solid signed contract!

The sections that should appear in any freight forwarding contract are the following:

– the identification details of the parties;
– the names of the persons representing the companies and their capacity;
– the subject matter of the contract;
– the obligations of the parties in performing the contract;
– the delivery and quality conditions for the goods and/or services;
– the agreed deadlines;
– the methods of payment and of securing payment of the price;
– the payment instruments;
– the clauses protecting the price against inflation and devaluation;
– the contractual risk;
– the way in which any disputes arising in connection with the performance and execution of the contract are to be settled;
– force majeure;
– the signatures of the parties.

Depending on the type of transport and on your goods, the contract may also contain certain specific clauses or even addenda.

The transport contract between the freight forwarder and its subcontractors

After concluding the contract with the client, the freight forwarder must conclude a separate transport contract with its subcontractors. Who are they? They are the ones who will actually carry out the transport, with means of transport that they own or that they have the right to use. As a rule, the subcontractors are the transport operators themselves (road, air, rail, sea, inland waterway).

In principle, the sections of such a transport contract are identical to the sections of the freight forwarding contract. In addition, the transport contract may contain certain special instructions given by the freight forwarder.

Subcontractors are obliged to hold the valid licences and authorisations laid down by law for the mode of transport concerned and to present them to the forwarding company at its request. Subcontractors must also hold liability insurance policies specific to the activity of a transport operator.

The bodies that regulate the contracts required in the freight forwarding process

The standard rules governing the contracts required in the freight forwarding process are:

• the USER rules updated in 2021 for all modes of transport, available here;
• the general conditions recommended and applied by the professional organisations of countries with significant forwarding activity, for example FIATA, which has issued its own rules – FIATA Model Rules for Freight Forwarding Services.

Honexpres – freight forwarding

Honexpres is an experienced freight forwarder. From the moment we sign the contract with you, we take care of absolutely everything so that the transport of your goods goes perfectly. We work only with experienced subcontractors and we check that all their permits are up to date. The satisfaction of our clients matters most. That is why we look after your goods exactly as if they were our own! Ask for a freight forwarding quote for your goods!