A freight forwarding agreement determines the relationship between exporter/importer/other client and freight forwarding company, in which freight forwarding company offers freight forwarding and logistics services to the customer as agreed.
The timing and methods of signing freight forwarding agreement depends on the trade in question and on the amount and extent of services needed by customer. A customer often asks forwarder either for an offer for departure and destination costs of a country in question or asks for freight forwarding and transport offer. Freight forwarding agent replies with an offer and guidance how an offer is accepted and implemented.
If nothing else is agreed, freight forwarding agreement comes into effect by ordering an offer. If a forwarding company has provided to client general provisions of the Nordic Association of Freight Forwarders (PSYM 2015) and announces that service is provided in accordance with these standard terms and conditions, then these will also be part of the freight forwarding agreement. Freight forwarding agreement should always be confirmed in writing to avoid any confusion on both sides.
In the freight forwarding agreement freight forwarding company commits to:
- to carry out the tasks assigned to them
- to make necessary agreements with a third-party in their own name on behalf of the client
- to comply with the general provisions of the Nordic Association of Freight Forwarders
as far as this been agreed, to pay on behalf of a client all the costs in the forwarding invoice such as freight costs, possible taxes and fees etc. for the agreed compensation.
The general contractual obligations of a forwarder in accordance with freight forwarding agreement are:
- responsibility to act and to comply with instructions
- responsibility to check
- loyalty responsibility