Sunday, April 5, 2009

The Forwarder as Logistics Provider

Unlike transport services, a forwarder providing logistic services acts as principal, and not as agent of some other provider. In its role as logistics provider, a forwarder will provide other services such as consolidation of shipments from supplier, inventory management, distribution services, such as labeling, order fulfillment, and local delivery to consumers, pick and pack (i.e. assembly of products into consumer goods for retail sale), and many other.

Logistics agreement assume a relationship that will continue for a period of time, covering more than arrangements for transport of goods on individual occasions. A logistics relationship is more frequently formalized in a signed agreement operative over a period of time that covers all goods handled by the forwarder during the period.

If there is no signed agreement, these services present problems of contract management and interpretation that are in principle no different from those arising in the transport of goods. Naturally the content of the forwarder's undertakings applicable to transport services. Given these differences, FENEX (Netherlands Association for Forwarding and Logistics) has prepared standard conditions for logistics services that are available on its website.

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