In the agency export business, there is no absolutely fixed mode for bearing the freight, which mainly depends on the contract agreement signed by the principal and the agent. Generally speaking, if the principal only wants the agent to be responsible for matters related to the export process and controls the goods transportation link by itself, then the freight is most likely to be borne by the principal, and the agent only provides necessary assistance. If the principal entrusts the agent to handle all export matters, including transportation arrangements, and there is no special agreement in the contract, the agent may advance the freight first, and ultimately, the freight cost will still be included in the agency fee and charged to the principal. From the perspective of industry practices, most of the time, the principal bears the freight because the principal is more aware of the detailed transportation requirements of the goods. However, it should still be subject to the contract, and key information such as the party bearing the freight and the payment time should be clarified to avoid disputes.
At the legal level, as long as the contract agreement does not violate the mandatory provisions of laws and regulations, it is protected by law.
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
In the agency export business, there is no absolutely fixed mode for bearing the freight, which mainly depends on the contract agreement signed by the principal and the agent. Generally speaking, if the principal only wants the agent to be responsible for matters related to the export process and controls the goods transportation link by itself, then the freight is most likely to be borne by the principal, and the agent only provides necessary assistance. If the principal entrusts the agent to handle all export matters, including transportation arrangements, and there is no special agreement in the contract, the agent may advance the freight first, and ultimately, the freight cost will still be included in the agency fee and charged to the principal. From the perspective of industry practices, most of the time, the principal bears the freight because the principal is more aware of the detailed transportation requirements of the goods. However, it should still be subject to the contract, and key information such as the party bearing the freight and the payment time should be clarified to avoid disputes.
At the legal level, as long as the contract agreement does not violate the mandatory provisions of laws and regulations, it is protected by law.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Generally, if the agency contract does not specify in detail, it is defaulted that the principal bears the freight. After all, the principal is the owner of the goods and has more decision-making power over the transportation arrangements.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
In some cases, in order to obtain business, the agent will promise to bear part of the freight to attract the principal to cooperate. It depends on how the two parties negotiate.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agent is responsible for finding a freight forwarder for transportation, then the agent may be the one who pays the freight to the freight forwarder, but ultimately, the cost still needs to be settled with the principal.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
If the export involves some special trade terms, such as CIF (Cost, Insurance and Freight), the agent's responsibility for arranging transportation and paying the freight will be more explicit, and it must be implemented in accordance with the requirements of the terms.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
If it is a consolidated cargo, the calculation of freight may be more complicated, but the subject bearing the freight still depends on the contract, and the principal may share the freight in proportion.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Sometimes, the two parties will also negotiate to share the freight according to the transportation risk. For example, the principal bears the freight for the part with high transportation risk.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
If the agent can get a preferential price in the transportation link, it may also negotiate to bear part of the freight and then profit from the price difference.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
If the goods have special transportation requirements proposed by the principal, it is very likely that the principal has to bear the freight.