The increasing activity of freight forwarders and the richness and diversity of their work is a remarkable fact of the modern freight industry. global freight forwarding This is due to the container revolution, the rise of multimodal transport, chronic overcapacity in the international maritime market, and the rapid and unprecedented development of the global logistics industry. Freight forwarders are gradually adapting to the new global logistics rules, and its importance has also been highlighted.

Despite their considerable profits, freight forwarders face a dilemma - as "general contractor" or "agent," sometimes they even jokingly use the term "carrier."

Dual role of freight forwarder

Traditionally, freight forwarding enterprises usually act as an agency system to arrange the transportation of their customers' shippers' goods. global logistics services Arranges shipping as an agency, pays freight, insurance, packaging, customs duties, etc., and then receives a fee for services, usually calculated as a percentage of total expenditure. All costs are disclosed to their customer, the shipper.

Sometimes the freight forwarder arranges the transport in his own name as the main contractor. global logistics tracking The shipper pays it a fixed freight. The freight forwarder then arranges for the carrier to earn the difference between the two at a lower freight rate. Freight forwarders often pack several shippers' goods into the same container to save costs for both the freight forwarder and the shipper. In this case, the freight forwarder's liability to the shipper is equivalent to that of the carrier.

As an agent or contract subject, freight forwarders often try their best to subcontract their responsibilities. This often leads to confusion in the setting of standard trading terms, which can easily lead to confusion between two different roles and responsibilities - agent and contract subject.

Agent or general contractor or double agent?

Whether a freight forwarder is an agent or a contractor, or even a dual role, depends on the circumstances and the specific laws that apply. We should fully investigate communications between forwarders and owners, including but not limited to contracts, telephone calls, letters and telegrams, all bills of lading issued, previous transactions, etc. Bills of lading and bills of lading between forwarder and sub-carrier are equally important.

The mere fact that the freight forwarder issued the "bill of lading" is not sufficient to prove that the freight forwarder is the carrier. Perhaps the freight forwarder has issued the bill of lading and the ocean carrier has also issued the ocean bill of lading; However, the contract between the shipper and the freight forwarder clearly states that the latter acts only as an agent. In turn, the freight forwarder may charge the shipper's commission or the carrier's brokerage fee instead of earning the difference between the freight charges.