������Ƶ

A Freight Forwarding Agreement sets out the terms between a logistics company and their client for managing cargo shipments across Malaysia and internationally. It covers how the forwarder will handle transportation, customs clearance, documentation, and storage of goods on the client's behalf.

Under Malaysian customs regulations and the Logistics Services Act, these agreements spell out key responsibilities like cargo insurance, delivery timelines, and liability limits. They're especially important for businesses moving goods through major Malaysian ports like Port Klang or Tanjung Pelepas, as they establish clear protocols for both routine shipments and special handling requirements.

Use a Freight Forwarding Agreement when you're planning regular shipments through Malaysian ports or need reliable handling of your international cargo. This becomes essential once your business starts moving goods worth over RM50,000 per shipment or requires specialized handling for sensitive materials.

The agreement proves particularly valuable when coordinating complex supply chains through multiple transport modes, or when shipping through high-traffic ports like Port Klang. Malaysian customs regulations require clear documentation of shipping arrangements, making this agreement crucial for smooth clearance and avoiding costly delays or penalties under the Customs Act 1967.

• Single Shipment Agreements: Cover one-time or occasional freight movements with specific pickup and delivery details
• Annual Service Agreements: Establish long-term relationships with set rates and guaranteed cargo space for regular shipments
• Multimodal Transport Agreements: Detail handling across sea, air, and land transport within Malaysia's logistics network
• Project Cargo Agreements: Specialized terms for oversized or complex shipments requiring custom handling
• E-commerce Fulfillment Agreements: Focus on high-volume, small-parcel distribution with specific last-mile delivery terms

• Freight Forwarders: Licensed logistics companies that manage cargo movement and provide the core services outlined in the agreement
• Manufacturing Exporters: Businesses shipping goods internationally through Malaysian ports who need reliable logistics partners
• Import Companies: Firms requiring customs clearance and local distribution services for incoming shipments
• Legal Departments: Corporate lawyers who draft and review agreements to ensure compliance with Malaysian logistics regulations
• Customs Agents: Licensed professionals who handle documentation and clearance procedures at ports

• Service Details: List specific freight services needed, including transport modes, routes, and handling requirements
• Company Information: Gather complete business details, customs registration numbers, and trading licenses for both parties
• Insurance Coverage: Determine required cargo insurance levels and liability limits under Malaysian maritime laws
• Rate Structure: Document all fees, surcharges, and payment terms, including currency specifications
• Compliance Requirements: Check current customs regulations and port authority guidelines for documentation needs
• Service Levels: Define clear performance metrics, delivery timeframes, and dispute resolution procedures

• Parties & Scope: Full legal names, registration numbers, and detailed service coverage areas
• Service Terms: Specific freight handling obligations, delivery timelines, and performance standards
• Liability Clauses: Clear limits under Malaysian Carriage of Goods by Sea Act regulations
• Payment Terms: Fee structure, currency, payment methods, and late payment consequences
• Insurance Requirements: Mandatory coverage levels and claim procedures
• Termination Rights: Notice periods and grounds for contract termination
• Dispute Resolution: Malaysian jurisdiction clause and agreed resolution methods

A Freight Forwarding Agreement differs significantly from an Agency Agreement in several key ways, though both involve representing another party's interests in business transactions. Here's what sets them apart:

• Scope of Services: Freight forwarders physically handle and coordinate cargo movement, while agents typically only arrange transactions without direct handling of goods
• Legal Liability: Freight forwarders assume direct responsibility for cargo safety and customs compliance, whereas agents mainly bear liability for accurate representation
• Regulatory Framework: Freight forwarding falls under Malaysian logistics and customs laws, requiring specific licenses, while agency agreements operate under general commercial law
• Payment Structure: Freight forwarders charge for actual services rendered plus handling fees, while agents typically work on commission-based arrangements