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Freight Forwarding Agreement
I need a freight forwarding agreement that outlines the responsibilities and liabilities of both parties, includes terms for handling customs clearance, and specifies the agreed-upon shipping routes and delivery timelines. The agreement should also cover insurance requirements and dispute resolution mechanisms.
What is a Freight Forwarding Agreement?
A Freight Forwarding Agreement lays out the terms between a company and its logistics partner who handles the movement of goods across borders. Under Swiss law, these contracts typically detail how the freight forwarder will manage customs clearance, transportation arrangements, and storage of cargo on behalf of their client.
The agreement sets clear responsibilities for documentation, insurance coverage, and liability limits - especially important given Switzerland's strict cargo handling regulations. It protects both parties by spelling out delivery timelines, payment terms, and what happens if goods are damaged or delayed during transit through Swiss territory or international shipping routes.
When should you use a Freight Forwarding Agreement?
Use a Freight Forwarding Agreement when your business needs to move goods internationally through Switzerland or across European borders. This becomes essential once you're handling regular shipments or dealing with complex supply chains that require specialized logistics expertise.
The agreement proves particularly valuable when coordinating multiple transportation methods, managing time-sensitive deliveries, or navigating Swiss customs requirements. Companies trading specialized goods, like pharmaceuticals or precision instruments, need this agreement to ensure proper handling and compliance with strict Swiss transportation regulations. It's crucial to have it in place before your first shipment to avoid delays and legal complications.
What are the different types of Freight Forwarding Agreement?
- Standard Export Agreement: Covers basic international shipping with standard liability terms and customs procedures for Swiss exporters
- Multi-Modal Transport Agreement: Includes specialized terms for shipments using multiple transportation methods through Switzerland's rail, road, and air networks
- Full-Service Logistics Agreement: Comprehensive coverage including warehousing, packaging, and end-to-end supply chain management
- Express Courier Agreement: Streamlined terms for time-sensitive deliveries with simplified documentation requirements
- Specialized Goods Agreement: Enhanced safety and compliance measures for dangerous goods, pharmaceuticals, or temperature-controlled items
Who should typically use a Freight Forwarding Agreement?
- Freight Forwarders: Swiss logistics companies who arrange and manage international shipments, handling documentation and customs clearance
- Manufacturing Exporters: Swiss companies shipping goods internationally who need professional logistics support
- Legal Departments: Corporate lawyers who draft and review these agreements to ensure compliance with Swiss transportation laws
- Customs Brokers: Specialists who handle border clearance procedures and documentation requirements
- Insurance Providers: Companies offering cargo insurance and risk coverage for international shipments
- Transport Operators: Airlines, shipping lines, and trucking companies that execute the physical movement of goods
How do you write a Freight Forwarding Agreement?
- Company Details: Gather full legal names, addresses, and registration numbers of both the freight forwarder and client
- Shipment Specifics: Document types of goods, volumes, packaging requirements, and delivery destinations
- Service Scope: Define exact services needed - customs clearance, storage, transport modes, documentation handling
- Insurance Coverage: Determine required insurance levels and liability limits under Swiss regulations
- Payment Terms: Establish rates, payment schedules, and currency preferences
- Timeline Details: Set clear delivery schedules and define procedures for delays or disruptions
- Compliance Check: Review Swiss customs requirements and transportation regulations for your specific goods
What should be included in a Freight Forwarding Agreement?
- Party Identification: Complete legal names, addresses, and registration numbers of both forwarder and client
- Service Definition: Detailed scope of logistics services, routes, and handling requirements
- Liability Terms: Clear limits and conditions aligned with Swiss Code of Obligations
- Insurance Requirements: Mandatory coverage levels and claim procedures
- Payment Structure: Rates, invoicing schedule, and accepted payment methods
- Force Majeure: Provisions for unforeseen events affecting delivery obligations
- Dispute Resolution: Swiss jurisdiction choice and arbitration procedures
- Termination Clauses: Conditions and notice periods for ending the agreement
What's the difference between a Freight Forwarding Agreement and a Consignment Agreement?
A Freight Forwarding Agreement differs significantly from a Consignment Agreement, though both deal with goods handling. The key distinctions lie in their scope, responsibilities, and legal framework under Swiss law.
- Service Focus: Freight forwarding covers complete logistics management including customs clearance and international transport, while consignment deals primarily with inventory storage and sale arrangements
- Risk Allocation: Freight forwarders take responsibility for goods during transit with specific liability limits, whereas consignment agreements transfer temporary possession without ownership
- Payment Structure: Freight forwarding fees are based on shipping services rendered, while consignment payments depend on successful sales of goods
- Legal Framework: Freight forwarding falls under Swiss transportation law and international shipping conventions, while consignment operates under Swiss commercial sales law
- Duration: Freight forwarding typically covers specific shipments or periods, whereas consignment agreements often run indefinitely until terminated
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