Terms and conditions for a freight forwarder

A freight forwarder arranges carriage it does not perform, declares goods it has not seen, and is held responsible when either goes wrong. The trading conditions have to say when the forwarder acts as agent and when as principal, how the international conventions limit the carriers' liability, that customs declarations rest on the customer's information, what insurance is and is not included, and how unpaid charges are secured on the goods. I draft those conditions for a fixed fee of £995, delivered in five working days.

Who this is for

Freight forwarders, customs agents and logistics intermediaries in England and Wales arranging sea, air and road carriage, customs clearance and warehousing for business customers importing and exporting goods. These are business-to-business trading conditions.

What matters in freight forwarding conditions

Agent or principal, and why it matters

The conditions should say that the forwarder acts as the customer's agent in arranging carriage, customs and other services unless it expressly agrees to act as principal, that when acting as agent it contracts with carriers on the customer's behalf on the carriers' own terms, and that the customer is bound by those terms. That distinction decides who the customer sues when the goods are damaged, and the conditions should make it plain.

Carrier liability, conventions and limits

International carriage by sea, air and road is governed by the Hague-Visby Rules under the Carriage of Goods by Sea Act 1971, the Montreal Convention under the Carriage by Air Act 1961 and the CMR Convention under the Carriage of Goods by Road Act 1965, each of which limits the carrier's liability by weight or package, and the conditions should say that those limits apply to claims against carriers and that the forwarder's own liability is limited as the conditions state, whether it acts as agent or principal, unless a higher value is declared and an additional charge paid. Time limits for notifying loss and bringing claims should be stated, because the conventions and the carriers impose short ones.

Customs, declarations and the customer's information

Customs declarations are made on the customer's instructions and information, and the conditions should make the customer responsible for the accuracy and completeness of descriptions, values, classifications, origins and licences, for duties and taxes, and for any penalty arising from wrong information. The conditions should say whether the forwarder acts as a direct or indirect customs agent under section 21 of the Taxation (Cross-border Trade) Act 2018, because an indirect agent is jointly liable for the duty and the customer's exposure differs.

Dangerous goods, packing and insurance

The customer must declare dangerous, hazardous and restricted goods and pack and label them as the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment Regulations 2009 and the sea and air codes require, and the conditions should say that undeclared dangerous goods are the customer's liability including for any resulting loss to others. Cargo insurance is not included unless the customer requests it in writing and pays the premium, and the conditions should say so, because customers assume the opposite.

Charges, liens, storage and demurrage

Charges are invoiced with interest and fixed compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998, and the conditions should give the forwarder a lien over goods in its possession for all sums due, with a right to sell after notice. Storage, demurrage, detention and quarantine charges arising from delays, customs holds or the customer's failure to collect are the customer's. Liability should be capped as stated, with consequential loss excluded, tested for reasonableness under the Unfair Contract Terms Act 1977.

What it costs

Customer or supplier terms and conditions, £995. One set of terms, customer-facing or supplier-facing, drafted for your business. Five working days.

Review of your existing terms, £495. You already have terms and want them checked and brought up to date. Returned marked up with my amendments and an explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the terms and conditions drafting page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• A full set of bespoke terms drafted for your business, reflecting the legal requirements that apply to your business and sector
• A note in plain English explaining the terms I have drafted for you
• Liability, payment, termination and IP provisions that protect your position and are drafted to withstand scrutiny from the other side
• Guidance on how to incorporate the terms properly
• Your questions and comments answered by email or phone
• One round of amendments to finalise the terms ready for use

What is not included

• Negotiating your terms with individual customers (I am happy to quote for this as an additional service if required)
• Sector-specific regulatory compliance beyond the contract terms themselves
• Website privacy notice and cookie compliance, which I quote separately
• Terms governed by the law of another country
• Tax advice

Questions I am often asked

The container was damaged at sea. Is the forwarder liable?

If the conditions say the forwarder acted as agent and the carrier's terms and the convention limits apply, the claim is against the carrier within those limits, and the forwarder assists with it. If the forwarder issued its own bill as principal, its liability is what the conditions state.

Customs penalised our customer for a wrong classification we entered from their instructions. Who pays?

If the conditions make the customer responsible for the accuracy of the information and for penalties arising from it, the customer. The written instruction is the evidence.

Can we hold goods until an old invoice is paid?

If the conditions give a general lien over goods in your possession for all sums due, including on other consignments, and provide for sale after notice, yes. A lien limited to the current consignment is weaker, and the conditions should say which you have.

Related guidance and services

• Terms and conditions drafting, £995, the service this page describes
• Contract review, £495
• Terms and conditions for a haulage company
• Terms and conditions for a warehousing and fulfilment business

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.