The Freight Forwarding Contract serves as the primary legal framework for establishing a professional relationship between freight forwarders and their clients in Australia. This document is essential when businesses require comprehensive logistics services, including cargo transportation, storage, customs clearance, and supply chain management. It is particularly relevant in today's global trade environment where Australian businesses frequently engage in international commerce. The contract addresses key aspects such as service scope, liability allocation, insurance requirements, and compliance with Australian regulations including the Competition and Consumer Act 2010 and various transport and customs legislations. It's designed to protect both parties' interests while ensuring clear operational guidelines and risk management procedures.
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1. Parties: Identification of the freight forwarder and the client, including full legal names, addresses, and registration details
2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the freight forwarding arrangement
3. Definitions: Detailed definitions of key terms used throughout the agreement including technical shipping terms, service definitions, and industry-specific terminology
4. Services: Comprehensive description of freight forwarding services to be provided, including cargo handling, documentation, customs clearance, and transportation arrangements
5. Service Standards: Performance standards, KPIs, and service level requirements the freight forwarder must meet
6. Obligations of the Freight Forwarder: Detailed responsibilities including cargo handling, documentation, compliance with regulations, and communication requirements
7. Client Obligations: Client's responsibilities including providing accurate information, packaging requirements, and cooperation obligations
8. Rates and Payment Terms: Pricing structure, payment terms, invoicing procedures, and any additional charges or surcharges
9. Liability and Insurance: Allocation of risk, limitation of liability, insurance requirements, and indemnification provisions
10. Term and Termination: Duration of the agreement, renewal terms, and circumstances for termination
11. Force Majeure: Events excusing performance and procedures for handling force majeure situations
12. Confidentiality: Protection of confidential information and trade secrets
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. General Provisions: Standard boilerplate clauses including notices, assignment, entire agreement, and amendments
1. Customs Brokerage Services: Detailed provisions for customs clearance services when the freight forwarder also acts as a customs broker
2. Warehousing Services: Terms for storage and warehousing services if offered as part of the freight forwarding arrangement
3. Dangerous Goods Handling: Special provisions for handling hazardous materials or dangerous goods
4. Information Technology and Systems: Terms regarding the use of tracking systems, EDI, or other technological platforms
5. Environmental Compliance: Specific environmental obligations and sustainability requirements
6. Security Requirements: Additional security measures for high-value or sensitive cargo
7. Sub-contracting: Terms governing the use of sub-contractors and associated liability
8. Performance Incentives: Bonus structures or incentive schemes for exceeding service levels
9. Intellectual Property: IP provisions when proprietary systems or software are involved
1. Schedule 1 - Service Level Agreement: Detailed KPIs, performance metrics, and measurement methodologies
2. Schedule 2 - Rate Card: Comprehensive pricing schedule including base rates, surcharges, and special service fees
3. Schedule 3 - Operating Procedures: Detailed operational procedures, booking requirements, and documentation processes
4. Schedule 4 - Insurance Requirements: Specific insurance types and coverage levels required
5. Schedule 5 - Approved Sub-contractors: List of pre-approved sub-contractors and their specific roles
6. Schedule 6 - Service Locations: List of geographical locations covered by the agreement
7. Appendix A - Required Documentation: Templates and examples of required shipping documents
8. Appendix B - Claims Procedures: Detailed procedures for handling cargo claims and damages
9. Appendix C - Emergency Contact List: List of key contacts for various scenarios and emergencies
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