Detailed explanation of the main contents and key points of the freight forwarding contract and freight-related miscellaneous charges

As a legal document between the freight forwarding company and the cargo owner, the importance of the freight forwarding contract is self-evident. The contract not only stipulates the rights and obligations of both parties during the transportation of goods, but also provides an important guarantee for the safety and smooth transportation of goods.

Main contents of the contract

1. Time and place of contract signing: The freight forwarding contract should clearly stipulate the time and place of signing.
2. Parties to the contract: The contract must list the basic information of the freight forwarding company and the cargo owner, such as name, address and contact information.
3. Goods description: Detailed description of the type, quantity, specification, weight and packaging method of the goods.
4. Mode of Transportation: Identify the mode of transportation (e.g. ocean freight), the means of transportation used, the route or path, and the estimated transportation schedule.
5. Fees Payment: Define the payment method and time limit for all relevant fees (including but not limited to transportation fees, insurance premiums, customs duties, and VAT).
6. Insurance liability: Define the scope and amount of insurance liability during transportation to ensure the safety of the goods.
7. Cargo Bill of Lading: Describes the issuance and transfer rules of the bill of lading, as well as the specific type and format of the bill of lading.
8. Contract termination: Establish the conditions and procedures for contract termination.

Key points for signing a contract

• Both parties need to carefully review the terms of the contract to ensure they understand everything.
• Complete a comprehensive inventory and inspection of the goods before signing the contract to confirm that the items are intact.
• Clear payment details.
• Freight forwarders need to provide detailed transportation plans and route maps to keep cargo owners informed of the logistics status.
• During transportation, the freight forwarder is responsible for regularly updating the cargo owner’s information about the status of the goods.

Contract termination

• The contract can be terminated through consensus and relevant matters such as termination method, timing and compensation can be discussed.
• If a force majeure event occurs and transportation cannot be carried out, the contract is allowed to be terminated.
• When the freight forwarder fails to perform its duties, the cargo owner has the right to terminate the agreement and claim compensation.

Analysis of sea freight and additional charges

In addition to the basic freight, ocean freight costs also include a series of additional fees charged by shipping companies, ports or freight forwarders themselves. These fees lack fixed standards and are relatively flexible. It is worth noting that some fees are charged to both the recipient and the sender, which may result in fees being adjusted arbitrarily between the two.

Common additional charges are as follows:

• Port of Departure Terminal Surcharge (ORC)
• Destination port pick-up fee (DDC)
• Terminal Handling Fee (THC)
• Fuel Surcharge (BAF/FAF)
• Currency Devaluation Surcharge (CAF)
• Documentation Fee (DOC)
• Peak Season Surcharge (PSS)

Due to frequent fluctuations in international ocean freight rates, it is recommended that customers inform the estimated shipping date when making inquiries and request the freight forwarder to predict future freight trends in order to better evaluate supplier quotations. At the same time, avoid lowering prices too much, as reasonable profit margins help maintain good service quality and stability.

Tips

• Compare across multiple freight forwarders to get accurate market trend information.
• Choose partners who are willing to communicate honestly and give practical advice.

To sum up, the formulation and execution of freight forwarding contracts need to be treated with caution, and at the same time have sufficient understanding of the freight structure, so as to effectively manage costs and ensure the efficient operation of the supply chain.