CN

Analysis of Key Terms in International Freight Forwarding Contracts

Definition of Rights and Responsibilities Clause

The scope of services should be clearly defined to include derivative services such as destination port customs clearance and tax payment, in order to avoid implicit fee disputes. For example, in a certain case, the shipper paid an additional 120000 yuan due to the lack of agreement on the responsible party for demurrage fees.


Cost settlement mechanism
Suggest using a combination of "prepaid+collect" payment: 70% of the freight is paid before shipment, and 30% is settled after delivery at the destination port.

The adjustment formula for variable costs such as fuel surcharges and exchange rate fluctuations should be agreed upon, such as quarterly fluctuations based on the SCFI index.


Default handling clause
Establish a graded compensation standard: 0.1% of the daily penalty will be charged for transportation delays, and 80% of the actual loss will be compensated for cargo damage, with a maximum not exceeding the declared value.
It is recommended to choose the China Maritime Arbitration Commission as the preferred place for dispute resolution, which can shorten the processing time by 40% compared to court litigation.
Service Hotline

0086-411-62888987

Email: debbie@honourshipping.com
Website: www.honourshipping.com
Address: 3703B, ETON INTERNATIONAL TOWER, NO.280 CHANGJIANG ROAD, ZHONGSHAN DIST., DALIAN, CHINA.
CopyRight © 2025-2026 Dalian Honour Shipping Co.,Ltd. All rights reserved