Freight Forwarding Agreement Template for England and Wales

A Freight Forwarding Agreement sets out the terms between a freight forwarder and their client for managing cargo shipments. These contracts are essential for UK businesses moving goods internationally, as they spell out how the forwarder will handle transport logistics, customs clearance, and documentation.

The agreement covers key responsibilities like cargo insurance, delivery timeframes, and liability limits under British transport laws. It protects both parties by clearly defining who's responsible when things go wrong - from shipping delays to damaged goods. Most UK freight forwarders use standardized terms aligned with BIFA (British International Freight Association) guidelines, though specific terms can be negotiated.

Use a Freight Forwarding Agreement when shipping goods internationally through a third-party logistics provider. This is particularly important for UK businesses engaging freight forwarders to handle complex shipping routes, customs documentation, or specialized cargo requiring specific handling conditions.

The agreement becomes essential before starting any new shipping arrangement, especially when dealing with high-value goods, time-sensitive deliveries, or regulated products. Having it in place protects your interests under UK transport laws, clarifies liability limits, and provides clear recourse if shipments are delayed, damaged, or lost. Many British companies implement these agreements when expanding into new markets or changing their supply chain partners.

• Standard BIFA Terms: Based on British International Freight Association templates, covering basic shipping arrangements and liability limits
• Multi-Modal Agreements: Covers combinations of sea, air, and land transport with specific terms for each mode
• Specialist Cargo Agreements: Enhanced provisions for dangerous goods, temperature-controlled items, or high-value shipments
• Customs-Focused Agreements: Detailed terms for customs clearance, documentation, and compliance with UK border requirements
• Project-Specific Contracts: Tailored for one-off large shipments or complex logistics projects with unique requirements

• Freight Forwarders: Companies or agents who arrange international shipments, handle customs documentation, and manage transport logistics
• Exporters/Importers: Businesses shipping goods who need professional logistics support and clear liability terms
• Shipping Companies: Third-party carriers who work with forwarders to physically transport goods
• Customs Agents: Specialists who clear goods through UK borders and ensure compliance with trade regulations
• Legal Teams: In-house or external solicitors who review and adapt agreements to protect their clients' interests
• Insurance Providers: Companies offering cargo insurance and setting coverage requirements

• Shipping Details: Collect specifics about cargo type, volume, routes, and delivery timeframes
• Service Scope: Define which services the forwarder will provide (transport, customs clearance, warehousing)
• Insurance Requirements: Determine coverage needs and liability limits for different cargo types
• Customs Documentation: Gather necessary import/export licenses and compliance certificates
• Payment Terms: Agree on rates, additional charges, and payment schedules
• Risk Assessment: Identify potential shipping challenges and include appropriate protective clauses
• Contact Information: List key personnel and emergency contacts for both parties

• Party Details: Full legal names, addresses, and registration numbers of forwarder and client
• Service Scope: Detailed description of freight forwarding services, routes, and handling requirements
• Liability Terms: Clear limits aligned with BIFA standards and UK transport regulations
• Insurance Requirements: Mandatory coverage levels and claim procedures
• Payment Terms: Rates, additional charges, payment schedules, and late payment consequences
• Force Majeure: Circumstances excusing non-performance under English law
• Dispute Resolution: Jurisdiction, governing law, and arbitration procedures
• Termination Provisions: Notice periods and grounds for contract ending

A Freight Forwarding Agreement differs significantly from a Broker Agreement, though both involve intermediary services. Let's explore the key differences to help you choose the right document for your needs.

• Scope of Services: Freight forwarders actively manage logistics, handle customs clearance, and coordinate physical transport. Brokers typically only connect parties and arrange deals without handling goods.
• Liability Structure: Freight forwarders take on direct responsibility for cargo safety and delivery timing. Brokers usually limit liability to the accuracy of information provided.
• Regulatory Framework: Freight forwarding agreements must comply with BIFA guidelines and UK transport laws. Broker agreements focus on FCA regulations and contract law.
• Insurance Requirements: Freight forwarders need specific cargo and transit insurance. Brokers typically only require professional indemnity coverage.
• Payment Terms: Freight forwarding fees cover actual services and disbursements. Broker fees are usually commission-based.