Embeth is a senior lawyer at Sprintlaw. Having previously practised at a commercial litigation firm, Embeth has a deep understanding of commercial law and how to identify the legal needs of businesses.
What Should You Include In A Freight Forwarding Agreement?
- 1. Scope Of Services
- 2. Documentation Responsibilities
- 3. Fees, Surcharges, And Payment Terms
- 4. Liability For Loss, Damage, Or Delay
- 5. Insurance (Cargo Insurance And Who Must Arrange It)
- 6. Dangerous Goods, Controlled Goods, And Special Handling
- 7. Security Interests And Credit Risk
- 8. Dispute Resolution, Governing Law, And Jurisdiction
- Key Takeaways
Importing or exporting goods can be a huge growth lever for a New Zealand business - whether you’re bringing in stock to sell online, shipping manufactured products overseas, or moving parts and equipment for a project.
But once you’re dealing with international shipping, multiple parties, and tight timelines, things can get complicated quickly. That’s where a freight forwarder often comes in, and that’s also where the freight forwarding agreement becomes one of your most important legal documents.
This guide is updated to reflect current, practical expectations in the market (including the continued regulatory focus on border processes, documentation, and biosecurity). We’ll walk you through what freight forwarding agreements are, how they fit into importing and exporting, and what you should lock in so you’re protected from day one.
What Is A Freight Forwarding Agreement (And What Does A Freight Forwarder Actually Do)?
A freight forwarder is a logistics specialist who helps organise the movement of goods from one place to another - typically across borders - by coordinating transport and documents.
A common misconception is that a freight forwarder is always the same as the carrier. In reality, a freight forwarder may:
- Book sea freight, air freight, road transport, or rail through carriers
- Arrange consolidation (grouping goods with other shipments)
- Coordinate warehousing and packing services
- Help with shipping documentation
- Coordinate customs clearance (sometimes directly, sometimes through a customs broker)
- Arrange cargo insurance (depending on what you’ve agreed)
A freight forwarding agreement sets out the rules of engagement between you and the freight forwarder, including:
- What services they will (and won’t) provide
- Who is responsible for what documents and approvals
- How fees, surcharges, and payment timing work
- Liability (especially for loss, damage, delay, and consequential loss)
- Insurance responsibilities
- Dispute resolution and governing law (important when parties are in different countries)
If you’re relying on a forwarder for ongoing shipments, having a proper Freight Forwarding Agreement in place can save you a lot of stress later - especially when something goes wrong (and in shipping, it’s usually “when”, not “if”).
Freight Forwarder vs Carrier vs Customs Broker
These roles often overlap in practice, so it helps to be clear on who is doing what:
- Carrier: physically transports goods (e.g. shipping line, airline, trucking company).
- Freight forwarder: organises the movement of goods and may contract with carriers on your behalf (or as principal, depending on the arrangement).
- Customs broker: handles customs entry/clearance processes and interacts with NZ Customs.
Why does this matter? Because your legal rights (and who you can realistically claim against) can depend on whether the forwarder is acting as your agent or acting as a contracting party in their own right.
Why Your Import/Export Paperwork And Contracts Matter More Than You Think
When you import or export goods, the “paper trail” is not just admin - it’s how you prove what was agreed, what was shipped, who was responsible, and what happens if things don’t go to plan.
In a typical shipment, you might have:
- A sales contract with your overseas buyer (if exporting)
- A purchase contract with your overseas supplier (if importing)
- Incoterms (e.g. EXW, FOB, CIF, DDP) to allocate responsibilities
- A freight forwarding agreement or logistics terms
- A bill of lading or air waybill
- Commercial invoices and packing lists
- Certificates (origin, fumigation, compliance, product safety)
- Insurance certificates (if insured)
If those documents don’t line up, you can end up paying unexpected costs, losing time at the border, or finding out too late that the risk of loss had already passed to you.
A Quick Note On Incoterms
Incoterms aren’t laws, but they are widely used international trade terms that allocate responsibilities (like who arranges freight, who pays insurance, and when risk transfers). Incoterms are often referenced in invoices and shipping documents, but they don’t replace a proper contract.
For example, you might be told “it’s CIF Auckland” - but your business still needs clarity on:
- What insurance is actually arranged (and how to claim)
- What happens if the goods are delayed
- Who pays port charges, storage, or demurrage
- What quality standards the goods must meet
This is where your supply and logistics contracts do the heavy lifting. If you’re buying stock or materials from a manufacturer or wholesaler, a tailored Supply Agreement can be the difference between a clean resolution and an expensive dispute.
What Laws And Compliance Issues Apply To Importing And Exporting In NZ?
Most business owners don’t need to memorise legislation - but you do need to know what legal “buckets” apply so you can manage risk properly.
Depending on what you’re shipping, where it’s coming from, and how you sell it, you may need to consider the following New Zealand legal areas.
Customs, Duties, And Border Requirements
Importing into New Zealand usually involves engaging with NZ Customs processes, including correct declarations, valuation, tariff classification, and payment of any applicable duties and GST.
If the paperwork is wrong (even accidentally), the shipment can be delayed and costs can stack up quickly. Your freight forwarding agreement should clearly state who is responsible for preparing and submitting key documents, and what happens if information you provide turns out to be incorrect.
Biosecurity And Quarantine Controls
Biosecurity is a major focus at the NZ border, particularly for:
- Food and beverages
- Plant products, timber, and packaging materials
- Used machinery or equipment
- Outdoor items (camping gear, bikes, sports equipment)
Even if the goods themselves are fine, packaging (like pallets) can cause issues if it’s not compliant. It’s common to see disputes where one side says, “that wasn’t my responsibility”. Your contracts should remove that ambiguity.
Consumer Law If You’re Selling Goods In NZ
If you import goods and sell them to customers in New Zealand, you still need to comply with New Zealand consumer law - including:
- The Fair Trading Act 1986 (for misleading claims, advertising accuracy, and representations)
- The Consumer Guarantees Act 1993 (for product quality guarantees, remedies, and refund/repair obligations in consumer sales)
That matters because if the goods arrive defective or non-compliant, your customers can come to you - not your overseas supplier. Your supplier terms and freight forwarder terms should support your ability to recover losses where appropriate.
Privacy And Data Handling (Yes, Even In Logistics)
Logistics often involves personal information: names, phone numbers, delivery addresses, sometimes ID documents for clearance. If you collect or share personal information, you need to handle it in line with the Privacy Act 2020.
For online stores and businesses managing customer deliveries, having a clear Privacy Policy is a practical baseline - and you should also make sure your contracts with service providers explain how data is handled, stored, and shared.
Contract Law And Dispute Risk
At its core, your freight forwarding agreement is a commercial contract governed by contract law principles in New Zealand (including the Contract and Commercial Law Act 2017).
This is why it’s worth getting the details right upfront - not after the shipment is held, damaged, or delivered late and everyone is pointing fingers.
What Should You Include In A Freight Forwarding Agreement?
A solid freight forwarding agreement isn’t just “terms and conditions”. It’s a risk management tool that sets expectations, allocates responsibility, and gives you a clear pathway if something goes wrong.
Below are common clauses and commercial points you should consider.
1. Scope Of Services
Start with clarity. What exactly is the forwarder doing?
- Booking international freight
- Arranging pickup and delivery (door-to-port, port-to-door, door-to-door)
- Warehousing and storage
- Packing, labelling, palletising
- Customs clearance (or arranging customs brokerage)
- Insurance placement
If something is not included, say so explicitly. A lot of disputes start with assumptions like “I thought that was included”.
2. Documentation Responsibilities
International trade runs on documents. Your agreement should cover:
- What information you must provide (and by when)
- What the forwarder prepares
- Who checks accuracy
- What happens if there are errors or missing documents
This is particularly important if your goods require permits, certifications, or special handling.
3. Fees, Surcharges, And Payment Terms
Freight pricing can be more complex than a single “shipping fee”. You’ll often see additional charges like:
- Fuel surcharges
- Peak season surcharges
- Port service charges
- Terminal handling charges
- Storage, demurrage, and detention
- Re-delivery or re-direction fees
Your agreement should explain:
- How pricing is calculated and when it can change
- Whether quotes are binding or indicative
- Payment deadlines and interest on late payments
- When the forwarder can withhold release of goods due to non-payment (a lien)
Many businesses align their logistics arrangements with their broader Terms of Trade so that credit terms, payment timing, and debt recovery processes are consistent across operations.
4. Liability For Loss, Damage, Or Delay
This is usually the most important (and most misunderstood) part of freight forwarding agreements.
Key questions to address include:
- Is the forwarder acting as your agent, or as principal?
- Are there liability caps (e.g. per kg, per package, per shipment)?
- Are certain types of losses excluded (like “consequential loss”)?
- What time limits apply to notifying claims?
- What evidence is required to support a claim?
From a business owner’s perspective, this is where you want to be very careful. If your forwarder’s liability is limited to a small amount, you may be relying heavily on insurance to cover the real financial impact of a damaged shipment.
5. Insurance (Cargo Insurance And Who Must Arrange It)
Some businesses assume cargo is “automatically insured”. Often, it isn’t - or the default coverage is limited and doesn’t reflect the true value of your goods.
Your agreement should clearly state:
- Whether the forwarder arranges insurance, and on what terms
- Whether you must arrange your own insurance
- What happens if you decline insurance
- Who is responsible for claims handling and documentation
A practical approach is to treat insurance as a separate decision each time you ship - but documented clearly so there’s no dispute later.
6. Dangerous Goods, Controlled Goods, And Special Handling
If you import/export hazardous materials, batteries, chemicals, cosmetics, food, or regulated goods, you may face extra rules and additional costs.
Your agreement should cover:
- Your obligation to correctly declare goods
- Packaging and labelling standards
- The forwarder’s right to refuse non-compliant cargo
- Indemnities (for example, if incorrect declarations cause fines or losses)
This is one area where “cheap templates” can backfire - a clause that’s too generic may not reflect your real risk profile.
7. Security Interests And Credit Risk
Depending on the commercial arrangement, you might see clauses about liens, retention of documents, or broader security arrangements for unpaid invoices.
In some cases (particularly where ongoing credit is provided or high-value goods are involved), businesses use a General Security Agreement to formalise security over assets. Whether that’s appropriate depends on the relationship and bargaining power - but it’s worth understanding the concept before you sign anything that quietly gives the other party strong enforcement rights.
8. Dispute Resolution, Governing Law, And Jurisdiction
Because freight forwarding often involves overseas parties, it’s important to be clear on:
- Whether New Zealand law applies
- Where disputes must be handled (NZ courts, arbitration, overseas jurisdiction)
- Step-by-step dispute resolution processes (negotiation, mediation, escalation)
This can make a real difference to cost and speed if a dispute arises.
Practical Tips For Importers And Exporters Using Freight Forwarders
Once you’ve got the right agreement framework, the next step is making sure your day-to-day operations match what you’ve signed.
Here are practical steps that help prevent disputes and delays.
1. Confirm Your Supply Chain Contracts Match Your Shipping Terms
Your supplier contract, freight forwarder agreement, and customer terms should not contradict each other.
For example, if you promise a customer delivery by a certain date, but your freight forwarder terms exclude liability for delay and your cargo isn’t insured, you may be carrying a lot of unpriced risk.
When you’re contracting across borders, it can help to have your key commercial terms reviewed under an International contracts lens - especially around payment currency, dispute jurisdiction, and enforcement.
2. Keep A Written Record Of Shipment Instructions
Even with a master agreement in place, each shipment should have clear written instructions, including:
- Pickup location and contact details
- Delivery address and delivery window requirements
- Handling requirements (“fragile”, temperature control, upright-only)
- Declared value and insurance decision
- Commodity description and HS code (if known)
If a dispute arises, this documentation often becomes the key evidence.
3. Understand Who “Owns” The Timeline
Delays happen for all sorts of reasons - port congestion, weather events, customs holds, incomplete documents, or biosecurity inspection requirements.
The goal isn’t to eliminate every delay. It’s to make sure you know:
- What your forwarder is responsible for
- What timeframes are estimates vs commitments
- What costs you might wear if the shipment is held (storage/demurrage)
If you’re new to importing, it’s also useful to get familiar with the process end-to-end so you can anticipate pinch points (for example, clearance and MPI inspection timeframes). A step-by-step overview like this importing guide can help you plan more realistically.
4. If You Sell Online, Align Shipping Risk With Your Customer Terms
If you’re importing goods and shipping them domestically to customers, your customer-facing terms should clearly explain:
- Delivery timeframes (and that they’re estimates if appropriate)
- What happens if goods are lost in transit
- Refunds, replacements, and how claims are handled
It’s common for businesses to roll these rules into broader online Business Terms so customers understand the rules upfront and you have a consistent framework for resolving issues.
5. Don’t Sign A Forwarder’s Standard Terms Without Checking The Risk
Many forwarders operate on standard terms that heavily limit their liability and place significant obligations on you as the customer.
That doesn’t automatically mean the terms are “bad” - but it does mean you should understand what you’re agreeing to, especially around:
- Liability caps that don’t match the value of your goods
- Short claim timeframes (sometimes measured in days)
- Broad indemnities (where you cover their losses even if you weren’t at fault)
- Rights to hold goods if there’s a payment dispute
If the shipment value is material to your business, it’s worth getting legal advice before you commit - it’s much easier to negotiate terms upfront than argue about them later.
Key Takeaways
- A freight forwarding agreement sets the rules for how your goods will be moved, who is responsible for documents and costs, and what happens if there’s loss, damage, or delay.
- Freight forwarders, carriers, and customs brokers play different roles - and your legal rights can change depending on whether your forwarder is acting as agent or principal.
- Importing and exporting in New Zealand often involves compliance around Customs processes, biosecurity requirements, and (if you sell locally) consumer law obligations under the Fair Trading Act 1986 and Consumer Guarantees Act 1993.
- Key clauses to get right include scope of services, documentation responsibilities, pricing and surcharges, liability limits, insurance, liens/security, and dispute resolution.
- Your freight terms should align with your supplier contracts and your customer terms, so you don’t end up absorbing risk you didn’t price into your business.
- Don’t rely on assumptions - confirm insurance, confirm responsibilities, and document shipment instructions in writing every time.
If you’d like help putting the right freight forwarding agreement in place (or reviewing a forwarder’s terms before you sign), you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.


