Freight Forwarding Legal Risk Control Series 1 | Contract Name Does Not Determine Legal Status — Fix Freight Forwarder Liability Misconceptions

Most freight forwarding enterprises assume that signing a freight forwarding agreement exempts them from carrier liabilities. However, judicial judgments have overturned this traditional cognition. This article explains the priority rules of contract clauses to help enterprises avoid implicit carrier liabilities.

In the compliance operation and maritime judicial practice of international freight forwarding, most enterprises have a common cognitive misunderstanding, which is taking the contract name as the sole criterion for judging legal status. Many practitioners believe that as long as the cooperation agreement is named an "international freight forwarding agreement", the enterprise is merely a service agent responsible for basic agency work such as booking, customs declaration and logistics coordination, and does not need to bear full-process transportation risks.

Nevertheless, maritime court judgment standards are clear: the contract name is only a formal reference, and the actual rights and obligations clauses are the core basis for judging an enterprise’s legal status. A nominal agency agreement cannot exempt the carrier liabilities stipulated in its clauses.

If the cooperation agreement signed by the freight forwarder contains clauses such as "guaranteeing intact delivery of goods throughout the transportation", "bearing liabilities for cargo damage, shortage and loss during transportation", and "fully controlling cargo transportation and delivery risks", the court will pierce the formal contract and identify the enterprise as a contractual carrier. The enterprise shall be fully liable for compensation once disputes such as cargo damage, loss and transportation delay occur.

For freight forwarding enterprises, contract review is the first line of risk control. Enterprises shall not rely solely on contract names for risk judgment. It is essential to verify rights and obligations clause by clause, eliminate implicit carrier liability clauses, clarify the boundary of agency services, avoid legal risks from the source, and realize compliant and stable operation.

Disclaimer: The above content only represents the personal opinions of the company, is for industry exchange and reference only, and does not constitute any legal basis.