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Freight Forwarding Contract for Malaysia

Freight Forwarding Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the terms and conditions between a freight forwarding company and its client for the provision of logistics and transportation services. The document covers crucial aspects including service scope, liability limitations, insurance requirements, customs compliance, documentation requirements, and payment terms, while ensuring adherence to Malaysian shipping regulations and international trade laws. It includes specific provisions for various transportation modes, handling requirements, and risk allocation between parties.

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What is a Freight Forwarding Contract?

This Freight Forwarding Contract is essential for businesses engaged in international trade and logistics operations within Malaysia's jurisdiction. It serves as a legally binding agreement that defines the relationship between freight forwarders and their clients, establishing clear parameters for logistics services, risk allocation, and operational responsibilities. The document incorporates requirements from Malaysian legislation including the Carriage of Goods by Sea Act 1950, Customs Act 1967, and relevant international shipping regulations. It's particularly crucial for businesses seeking to ensure compliance with local laws while maintaining efficient supply chain operations. The contract typically includes detailed provisions for various modes of transport, customs clearance, warehousing, and documentation requirements, making it suitable for both standard shipping arrangements and specialized cargo handling needs.

What sections should be included in a Freight Forwarding Contract?

1. Parties: Identification of the freight forwarder and the customer, including full legal names and registration details

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of freight forwarding services to be provided

5. Obligations of the Freight Forwarder: Specific responsibilities and duties of the freight forwarder

6. Customer Obligations: Responsibilities and duties of the customer, including information and documentation requirements

7. Rates and Payment Terms: Pricing structure, payment terms, and invoicing procedures

8. Liability and Insurance: Limitation of liability, insurance requirements, and indemnification provisions

9. Documentation and Compliance: Requirements for shipping documentation and regulatory compliance

10. Term and Termination: Duration of the agreement and termination provisions

11. Force Majeure: Provisions for unforeseen circumstances and their handling

12. Confidentiality: Protection of confidential information and trade secrets

13. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Freight Forwarding Contract?

1. Customs Brokerage Services: Additional section when customs clearance services are included

2. Warehousing Services: Required when storage or warehousing services are part of the agreement

3. Dangerous Goods Handling: Specific provisions for handling hazardous materials

4. Temperature-Controlled Transport: Special provisions for temperature-sensitive cargo

5. Project Cargo Services: Specific terms for handling large or complex project cargo

6. Digital Services and Electronic Documentation: Terms for electronic shipping platforms and documentation

7. Performance Metrics: KPIs and service level agreements when specific performance standards are required

8. Sustainability Compliance: Environmental requirements and green logistics provisions when specifically required

What schedules should be included in a Freight Forwarding Contract?

1. Schedule A - Rate Card: Detailed pricing structure and rates for different services

2. Schedule B - Service Specifications: Detailed operational procedures and service specifications

3. Schedule C - Insurance Coverage: Details of insurance policies and coverage limits

4. Schedule D - Documentation Requirements: List of required documents for different types of shipments

5. Schedule E - Contact Information: Key contacts and escalation matrix for both parties

6. Appendix 1 - Standard Operating Procedures: Detailed procedures for handling different types of shipments

7. Appendix 2 - Compliance Requirements: Specific regulatory and compliance requirements

8. Appendix 3 - Territory Coverage: List of geographical areas covered under the agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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