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A Freight Forwarding Agreement spells out the terms between a company and its logistics partner who handles the movement of goods across borders. Under Indonesian law, particularly the Trade Ministry's regulations on freight forwarding services, this contract defines how the forwarder will manage customs clearance, transportation, storage, and documentation of cargo shipments.

The agreement covers key responsibilities like insurance requirements, delivery timelines, and liability limits, protecting both parties in Indonesia's busy trade routes. It must comply with local shipping regulations and include specific provisions for different transport modes - sea, air, or land. Most Indonesian businesses use these agreements to ensure smooth international trade operations while meeting domestic compliance requirements.

Use a Freight Forwarding Agreement when your business needs to move goods internationally through Indonesian ports or airports. This becomes essential once you're handling regular shipments, working with multiple carriers, or managing complex supply chains that require specialized logistics expertise.

The agreement proves particularly valuable when coordinating time-sensitive deliveries, managing high-value cargo, or navigating Indonesia's customs requirements. Companies expanding into new international markets benefit from having this agreement in place before their first shipment, as it establishes clear liability limits, insurance coverage, and service expectations with their logistics partner. This protection becomes crucial when dealing with customs delays, cargo damage, or delivery disputes.

• General Service Agreement: Basic version covering standard freight forwarding services like customs clearance, documentation, and basic cargo handling
• Comprehensive Logistics Contract: Expanded agreement including warehousing, inventory management, and specialized handling requirements
• Project-Specific Agreement: Tailored for one-time large shipments or specific projects with unique logistics needs
• Multi-Modal Transport Agreement: Specialized version for shipments using multiple transport methods across Indonesia's diverse geography
• E-commerce Logistics Agreement: Modified for high-volume, small-package shipping common in Indonesia's growing online retail sector

• Freight Forwarders: Licensed logistics companies in Indonesia that handle the transportation, documentation, and customs clearance of goods
• Exporters/Importers: Businesses shipping goods internationally through Indonesian ports who need professional logistics support
• Legal Teams: In-house or external counsel who draft and review agreements to ensure compliance with Indonesian shipping regulations
• Customs Officials: Government representatives who verify documentation and ensure compliance with import/export regulations
• Insurance Providers: Companies offering cargo insurance and risk coverage as specified in the agreement

• Service Scope: Detail specific logistics services needed, including transportation modes, routes, and special handling requirements
• Company Details: Gather complete legal names, addresses, and registration numbers of both parties plus relevant licenses
• Operational Terms: List expected shipment volumes, delivery timelines, and performance metrics
• Risk Assessment: Identify potential liability issues and required insurance coverage based on cargo value and type
• Compliance Check: Review current Indonesian customs regulations and logistics licensing requirements
• Cost Structure: Outline pricing, payment terms, and additional fees for special services or emergency handling

• Party Details: Full legal names, addresses, and business registration numbers of both freight forwarder and client
• Service Description: Detailed scope of logistics services, routes, and handling specifications
• Liability Terms: Clear allocation of risks, insurance requirements, and damage compensation limits
• Payment Terms: Fee structure, payment schedule, and currency specifications
• Force Majeure: Provisions for unforeseen events affecting service delivery
• Dispute Resolution: Choice of Indonesian law, jurisdiction, and arbitration procedures
• Termination Clauses: Conditions for ending the agreement and post-termination obligations

A Freight Forwarding Agreement differs significantly from an Agency Agreement, though both involve third-party services. Here's how they differ in the Indonesian business context:

• Scope of Authority: Freight forwarders handle specific logistics operations and customs clearance, while agency agreements grant broader powers to represent the company in various business dealings
• Liability Structure: Freight forwarders assume direct responsibility for cargo handling and documentation, whereas agents typically act as intermediaries with limited liability
• Service Focus: Freight forwarding agreements center on physical movement of goods and related services, while agency agreements cover marketing, sales, or general business representation
• Regulatory Framework: Freight forwarding is governed by specific Indonesian shipping and customs regulations, while agency relationships fall under general commercial law