Freight Forwarding Agreements And The Import and Export of Goods (2025 Updated)

Importing and exporting stock remains the cornerstone of many businesses involved in manufacturing and distributing goods both nationally and internationally. In 2025, the complexities of global trade have only increased, making well-drafted legal agreements more important than ever.

If you are a freight forwarder or are considering engaging one, a Freight Forwarding Agreement clearly sets out the terms of the arrangement. This includes the services the freight forwarder will provide, payment schedules, and procedures to be followed if something goes amiss during the import/export process. For more guidance on drafting solid business agreements, check out our contract review advice.

What Is Freight Forwarding?

Freight forwarders play a critical intermediary role in international trade. They interface between shippers—those requiring the shipment of goods—and transportation services such as cargo shipping companies and air carriers. While freight forwarders do not physically transport the goods, they act on behalf of the shipper to secure commercially effective deals.

They also provide expert advice on import and export regulations, assist with necessary customs documentation, and arrange for storage, insurance, and other logistics related to the transport of goods. With the increasing digitalisation of the shipping industry in 2025, many forwarders now integrate real-time tracking systems and digital compliance tools, ensuring transparency and efficiency throughout the supply chain. This evolution is echoed in our updated resources on legal requirements for starting a business.

Although engaging a freight forwarder is not strictly mandatory, the complex and highly regulated nature of the import/export process means many businesses choose to outsource this role. Doing so reduces stress and minimises the risk of non-compliance and inadvertent delays.

What To Include In A Freight Forwarding Agency Agreement

A comprehensive Freight Forwarding Agreement should address several key clauses to safeguard the interests of both parties. Below are some essential components:

Services

It is crucial to clearly define exactly what services will be provided. As mentioned above, freight forwarders may negotiate transport arrangements, advise on import and export regulations, and assist with customs, warehousing, and insurance matters.

For the client, specifying the services ensures that every step—from organising the mode of transport to managing documentation—is completed as expected. For the freight forwarder, a detailed services clause helps manage client expectations and clarifies the scope of work, thereby reducing the risk of future disputes. To ensure your terms are well-constructed, you might find our article on good business terms and conditions useful.

Payment

The agreement should clearly outline how and when the client must make payments. Typically, the payment is due on a specified date as indicated on the invoice, with interest charged on accounts that are overdue. In addition, any third-party expenses incurred by the freight forwarder are usually passed on to the client.

Some agreements may grant the freight forwarder a lien over the client’s goods until any outstanding sums are repaid. This clause allows the forwarder to claim ownership of, and potentially sell, the goods in certain circumstances where the debt remains unpaid. For further clarity on such clauses, see our resource on what makes a contract legally binding.

Damage

Given that freight forwarding involves the handling of goods over long distances, damage in transit can occasionally occur. Typically, the agreement will limit the freight forwarder’s liability for any damage incurred, except in instances where the damage is found to result from their negligence.

Alternatively, the agreement may be drafted to protect the client’s interests more robustly by holding the forwarder liable for all damages and associated repair costs. It is important that both parties fully understand the extent of liability and acceptable risk allocation. Our guidance on avoiding misrepresentations can be particularly relevant here.

Delay

Since freight forwarders arrange the transport of goods across various routes, the possibility of delays is ever-present. Therefore, the agreement usually includes clauses stating that delays, unless caused by negligence, are not the liability of the freight forwarder.

Nonetheless, the forwarder is generally required to use their best endeavours to adhere to agreed delivery schedules and minimise any disruption. For further insights into managing such business risks, you may want to review our tips on mitigating risk in business contracts.

Obligations Of Parties

A well-drafted Freight Forwarding Agreement should clearly assign responsibilities to both parties. Typically, the shipper is responsible for the actual goods and ensuring they are appropriately prepared for shipment, while the freight forwarder manages aspects such as insurance, scheduling, tracking, and warehousing arrangements.

Benefits Of A Freight Forwarding Agreement

Establishing a Freight Forwarding Agreement is highly beneficial as it secures all arrangements in writing, thereby reducing ambiguity and potential disputes. With the increasing complexities of international trade in 2025, having a clearly defined process for managing delays, damages, and payment issues is invaluable.

Moreover, a robust agreement helps build and secure long-term business relationships by ensuring both parties understand and meet their obligations. This security allows you to operate confidently and focus on growing your business. For additional support on ensuring your legal documents protect your interests, please check our comprehensive legal advice services.

Additionally, with advanced technology integration and digital compliance tools now common in the freight sector, both shippers and forwarders benefit from real-time updates and improved coordination. This evolution not only enhances efficiency but also reduces operational risks—a key factor in maintaining competitive advantage in today’s global market.

Need Help?

Freight forwarding can be a complex endeavour, but a carefully drafted Freight Forwarding Agreement ensures that both the freight forwarder and the client are aligned in expectations. If you need help drafting or reviewing your agreement, our team is here to provide expert support.

Contact us today on 0800 002 184 or email [email protected] for a free consultation. We also recommend checking out our comprehensive business guides for more insights into safeguarding your operations in 2025.

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