Legal Aspects…?

The Customer–Forwarder Relationship

Logistics Service Providers (LSPs) are inherently customer-oriented. Service quality, responsiveness, and problem-solving are decisive differentiators—and failing to meet expectations can mean losing a customer for good.

That commercial pressure sometimes leads forwarding organisations to under-invest in contract discipline and risk governance. This is a mistake. Legal clarity is not “administration”; it is part of the service. It protects both parties, reduces disputes, accelerates decision-making during exceptions, and prevents margin erosion through uncontrolled liabilities, scope creep, and pricing ambiguity.

A forwarder who does not structure the relationship properly cannot control operational and financial risk—especially when expectations are disappointed (damage, delay, customs issues, missed cut-offs, demurrage/detention, documentation discrepancies, etc.).

Common law and civil law — a brief comparison

The forwarder–customer relationship is typically governed by private law under two broad legal traditions: common lawand civil law.

Common law is largely judge-made and fact-driven. Outcomes can vary materially based on small differences in evidence, communications, or conduct. For forwarders, this makes documentation and written scope confirmationparticularly important.

Civil law is codified. Rules governing forwarding and logistics activities are found in legislative codes covering contract types such as mandate/agency and services.

In several civil-law jurisdictions, the concept of the “commissionaire de transport” provides a strong legal framework for forwarding operations: the provider organises transport in its own name and under its responsibility, typically with enhanced accountability compared to a pure agent. This distinction matters commercially, because it influences the customer’s expectations on performance, claims, and recourse.

Contract law — simplified and operational

The rights and obligations arising from an engagement with an LSP are governed by contract law. A contract is formed when the parties agree on the essential elements of the service: scope, roles, responsibilities, pricing structure, and key conditions.

Offer and acceptance (how contracts form in real life)

A contract is typically created when one party makes an offer and the other accepts it. In practice, offer and acceptance may occur through:

• a written quotation and written acceptance (best practice),
• a purchase order referencing agreed terms,
• or conduct (higher risk).

Conduct-based contracts are operationally dangerous. For example, handing goods to a terminal may imply acceptance of forwarding services for transport—but not necessarily for packaging, labelling, DG classification, compliance filings, cargo securing, or storage. If the scope is unclear, disputes are predictable.

Consultant rule: before performing any “extra” service, confirm in writing:

• what you will do,
• what assumptions apply (cargo readiness, documents, data accuracy),
• what is excluded,
• and what additional charges and liabilities may arise.

Managing expectations: reliability vs liability

A forwarder aims to minimise financial risk; a customer wants reliable transport and delivery. Many customers equate reliability with the forwarder “making good” any damage or delay. These expectations often conflict with how liability works in logistics—especially when:

• multiple carriers and subcontractors are involved,
• mandatory liability regimes or standard trading conditions apply,
• the forwarder is acting as agent vs principal,
• the shipment is time-critical without contractual service commitments.

This is why negotiations must explicitly accommodate both objectives. A professional engagement aligns:

• service commitments (what is operationally realistic),
• liability boundaries (what is legally and commercially acceptable),
• and insurance decisions (what risks should be transferred to cargo insurance).

Contract structure: what “good” looks like in 2026

High-performing forwarder–customer contracts typically include:

1) Scope and role clarity

• Is the forwarder acting as agent, principal, or contractual carrier/NVOCC?
• What is included: booking, consolidation, customs brokerage, warehousing, packaging, labelling, DG support, insurance placement, compliance filings?
• What is excluded unless agreed: repacking, cargo securing engineering, value-added services, special handling, storage beyond agreed free time.

2) Data and documentation responsibilities

• Who provides HS codes, product descriptions, origin statements, licences, DG classifications, and supporting documents?
• Who is responsible for accuracy, and what happens if data is incorrect or late?

3) Liability and claims governance (no ambiguity)

• Applicable liability framework / standard trading conditions (incorporated properly)
• Claims notice timelines, evidence requirements, and time bars
• Customer guidance on cargo insurance (and when it is recommended)

4) Pricing architecture and variability control

• Base rates + validity period
• Surcharge logic (fuel, peak season, congestion, imbalance, regulatory/environmental components where relevant)
• Accessorial triggers (waiting time, re-delivery, storage, customs inspections, DG non-compliance, VGM issues, rollovers)
• Demurrage/detention ownership and escalation principles

5) Operational governance

• Cut-offs, escalation paths, exception response times
• KPIs (on-time milestones, data timeliness, claims cycle time, invoice accuracy)
• Quarterly business reviews for continuous improvement

Negotiating terms — pricing: quotes vs tariffs

Forwarders typically use two mechanisms to obtain agreement on pricing:

A) Quotations (lane-specific offers)

Quotations are often issued without expectation of immediate acceptance. The risks are predictable:

• unclear scope (what is included/excluded),
• acceptance weeks later when carrier rates have moved,
• shipment already moving when the scope dispute emerges,
• misunderstanding over accessorials and local charges.

Best practice: every quotation should state:

• validity period (explicit end date),
• assumptions (cargo readiness, dimensions/weight, routing, equipment availability),
• inclusions/exclusions (especially local charges and accessorials),
• and the mechanism for changes (fuel/indexation, regulatory pass-through, carrier GRI/peak surcharges where applicable).

B) Published tariffs / standard conditions

Tariffs can be efficient for repetitive flows, but they require tight definition of:

• application scope,
• exceptions,
• and governance for volatility.

2026 reality: volatility has not disappeared. Customers value transparency and predictable rules more than “the cheapest rate of the day.” Your objective is controlled total cost—not a fragile base rate that collapses under add-ons.

Business takeaway

A strong customer–forwarder relationship is built on service, trust, and execution—but it is sustained by contract precision. The forwarder who protects scope, clarifies liability, and governs variability will deliver more reliable outcomes for the customer and more profitable operations for the provider.