Freight Forwarding Agreements And The Import and Export of Goods (2025 Updated)

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Importing and exporting stock remains the cornerstone for many businesses in 2025, whether you’re involved in manufacturing or distributing goods both nationally and internationally. In today’s fast-paced global market, ensuring that your logistics and documentation are spot-on is essential for staying competitive.

If you are a freight forwarder or are considering engaging one, a Freight Forwarding Agreement is pivotal in outlining the terms of your arrangement. This document details the services provided, payment schedules, dispute resolution processes, and the actions to be taken should challenges arise during the import/export process.

What Is Freight Forwarding?

Freight forwarders continue to play a key role in the import/export process by acting as the intermediary between shippers—those who require goods to be transported—and various transportation services, such as cargo shipping companies and air carriers. In 2025, their role has expanded further with the integration of digital tracking systems and automated compliance checks, ensuring your shipments are managed with optimal efficiency.

While freight forwarders don’t physically transport your goods, they operate as your agent. They negotiate cost-effective deals, advise on up-to-date import and export regulations, assist with crucial documentation, organise storage options, and recommend suitable insurance policies to safeguard your cargo throughout its journey.

Although engaging a freight forwarder isn’t a legal necessity, many businesses in 2025 choose to use their expertise to navigate the increasingly complex and regulated trade environment, thereby reducing the stress and risk associated with international shipments.

What To Include In A Freight Forwarding Agency Agreement

Freight Forwarding Agreements should comprehensively address key areas to ensure clarity and protection for both parties involved:

Services

Since the services provided by a freight forwarder can vary depending on the shipment, it is essential to clearly define exactly what services will be provided. This might include advising on the appropriate mode of transport, selecting the best carrier, assisting with customs and regulatory requirements, and planning for proper storage and insurance. Detailing these services helps both parties manage expectations and minimise potential disputes.

Payment

A Freight Forwarding Agreement will include clauses that detail how and when the client is required to make payment. In 2025, digital payment methods such as EFT—and even cryptocurrency where agreed—are becoming more prevalent.

Typically, payment is due by the date specified on the invoice, and interest is often charged on any late payments. Additionally, third party expenses incurred by the freight forwarder, such as customs or port charges, are generally billed to the client. To ensure your payment terms are current and legally enforceable, consider utilising our contract review and redraft service.

Damage

Given that freight forwarding involves handling and moving goods, occasional damage during transit is a risk to be managed. A well-drafted Freight Forwarding Agreement typically limits the freight forwarder’s liability for damage, except when the damage is a direct result of their negligence.

Alternatively, the Agreement can be framed so that the freight forwarder is responsible for covering the repair costs and any related losses incurred by the client if damage occurs under their watch.

Delay

Freight forwarding companies organise the transport of goods between destinations, and delays can sometimes occur due to circumstances beyond their control, such as adverse weather or unexpected regulatory issues. Consequently, the Agreement will usually include clauses that state the freight forwarder is not liable for losses resulting from delays that are out of their control.

Nevertheless, the freight forwarder is generally obliged to use their best endeavours to adhere to agreed delivery schedules and mitigate any delays, thereby reducing the impact on your supply chain.

In 2025, technological advancements such as real-time tracking, blockchain-enabled documentation, and automated compliance systems have further streamlined freight forwarding. These innovations not only boost operational efficiency but also enhance transparency and accuracy in your Freight Forwarding Agreement. For additional insights on modern logistics and legal strategies, you might also explore our guide on starting a courier business.

Obligations Of Parties

Freight forwarding agreements should clearly delineate the responsibilities of each party. Typically, the shipper is responsible for ensuring that the goods are properly prepared for shipment, while the freight forwarder takes care of insurance, scheduling, tracking, and warehousing arrangements.

For further clarity on contractual obligations, you may wish to read our article on what makes a contract legally binding. This ensures both sides fully understand their respective roles and responsibilities.

Benefits Of A Freight Forwarding Agreement

Having a written Freight Forwarding Agreement in place is highly beneficial as it provides a clear framework for the shipping process, thereby mitigating risks by outlining procedures to handle potential disputes or unexpected issues.

This agreement not only ensures that goods are delivered as promised but also fosters a stable business relationship by setting clear expectations from the outset. To further secure your business arrangements in 2025, consider reviewing our Business Set-Up Checklist for additional practical insights.

Need Help?

Freight forwarding can be complex, especially with an ever-evolving regulatory landscape and technological advancements in 2025. A properly drafted Freight Forwarding Agreement ensures that both the freight forwarder and the client are aligned, reducing the risk of disputes and unexpected losses.

If you need help getting a freight forwarding agreement drafted or want a review of your current contract, we’re here to assist! You can reach us on 1800 730 617 or email us at team@sprintlaw.com.au. For further personalised support, check out our free consultation service for business legal matters.

Embeth Sadie

Embeth is a senior lawyer at Sprintlaw. Having previously practised at a commercial litigation firm, Embeth has a deep understanding of commercial law and how to identify the legal needs of businesses.