In the agency export business, the bearing of freight is usually stipulated in the principal-agent contract. Generally, if the contract does not specify otherwise, the freight is borne by the principal. Because the principal is the owner of the goods, and the agent is mainly responsible for assisting in handling export-related procedures and does not directly benefit from the sale of the goods, the freight usually does not belong to the agent.
For additional costs during transportation, such as transshipment fees caused by force majeure, first check whether the contract has provisions for force majeure and execute according to the provisions. If there are no relevant provisions, the two parties can negotiate a solution. Usually, the principal will bear a relatively larger proportion, after all, the rights and interests of the goods belong to the principal. Therefore, in order to avoid disputes, when the principal and the agent sign the contract, they should clarify the way to bear various costs, especially the costs of possible special situations.
In short, making clear agreements in advance is the key to solving the problem of who bears the freight and related costs.
Professional consultant answers
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In the agency export business, the bearing of freight is usually stipulated in the principal-agent contract. Generally, if the contract does not specify otherwise, the freight is borne by the principal. Because the principal is the owner of the goods, and the agent is mainly responsible for assisting in handling export-related procedures and does not directly benefit from the sale of the goods, the freight usually does not belong to the agent.
For additional costs during transportation, such as transshipment fees caused by force majeure, first check whether the contract has provisions for force majeure and execute according to the provisions. If there are no relevant provisions, the two parties can negotiate a solution. Usually, the principal will bear a relatively larger proportion, after all, the rights and interests of the goods belong to the principal. Therefore, in order to avoid disputes, when the principal and the agent sign the contract, they should clarify the way to bear various costs, especially the costs of possible special situations.
In short, making clear agreements in advance is the key to solving the problem of who bears the freight and related costs.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the agency contract is not clearly written, I think it is reasonable for the principal to bear the freight. After all, it is the principal's goods that need to be shipped out. For additional costs, no one can do anything about force majeure. The two parties can discuss and share the costs without being too fussy.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
It is usually the practice that the principal is responsible for the freight, and the agent only helps handle the export process. If there are additional costs, such as special situations like force majeure, the two parties negotiate according to the actual situation and try to distribute the costs fairly and reasonably.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
Generally, the principal bears the freight. After all, the principal dominates the whole process from production to export of the goods. For additional costs, it still depends on how the two parties negotiate, and they can also refer to the handling methods of similar businesses.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
I think it is mostly the principal who bears the freight. After all, the agent only provides services. For the transshipment fees caused by force majeure, the two parties can communicate first to see if they can jointly bear a part of it.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Most of the time, the principal bears the freight. As for additional costs caused by force majeure, if the contract does not stipulate, the two parties can negotiate in a friendly manner, considering each other's costs and losses.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Generally, the principal bears the freight. For additional costs like those caused by force majeure, first check the contract. If there is no agreement, the two parties can sit down and discuss how to share them.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Generally, the principal pays the freight, and the agent is mainly in charge of the export procedures. For the transshipment fees due to force majeure, the two parties can discuss and share them according to the actual situation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Usually, the principal bears the freight. When there are additional costs due to force majeure, the two parties negotiate and allocate responsibilities considering the interests of both parties.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
It is common for the principal to bear the freight. For the transshipment fees caused by force majeure, the two parties negotiate and determine the bearer based on the principle of fairness and reasonableness.