INTERNATIONAL FREIGHT CONTRACT, WHAT SHOULD BE NOTED WHEN ENTERING?

The growing international freight trading activity leads to the fact that the international freight service industry is one of the service industries that bring. More profitable for businesses that provide this service. When you want to use the service, an international freight contract is signed between the customer and the service provider. So when drafting and signing this type of contract, what should businesses pay attention to? 

1.         Overview of an international freight contract

1.1.      Notion

A contract for carriage of goods is an agreement between parties whereby a carrier is obliged to deliver the property to the agreed destination and deliver The property is for the consignee, the shipper is obliged to pay the freight.

An international freight contract is a contract for the carriage of goods of international elements. The international factor here can be identified through one of the following factors:

–      Having at least one of the contracting parties (the carrier, the shipper and the buyer) has a foreign nationality. or is based in a foreign country.

–      Contracts are signed or performed in foreign countries;

–      The object of the contract is goods existing abroad;

–      There is a movement of goods across the territory of different countries.

1.2.      Types of international freight contracts

The classification of international freight contracts can be based on many factors. One of the most common factors, however, is the form of transportation. Accordingly, the main types of contracts for the carriage of international goods include:

–      International carriage of goods by sea: any contract under which the carrier undertakes the carriage of goods by road. sea ​​from one port to another to collect freight. However, if a contract includes the carriage of sea and other means, it shall be deemed to be a contract of carriage only by sea within the meaning of this Convention, if it relates to sea transport.

–      Contract for international carriage of goods by air: means an agreement between a carrier who is an organization providing commercial air transport services and a charterer, under which the carrier is obliged to transport the goods to the destination and return the goods to the authorized person; The charterer has the obligation to pay the freight.

2.         Notes when concluding an international contract for carriage of goods

2.1.      The subject in the contract

The subject in an international contract for the carriage of goods includes the charterer and the carrier. When concluding the contract, the carrier should confirm whether the lessee is the owner of the goods to be the subject of the contract or that the person is authorized by the owner of the goods. 

Conversely, the charterer also needs to make sure that the carrier meets the necessary conditions and is authorized to provide international freight services.

2.2.      Object of the Contract

The subject of the international contract for carriage of goods is the carriage of goods through different countries of the carrier. When signing a contract, the two sides need to pay attention to whether this work violates a regulation on international freight, whether the goods are banned from export or import by law. country of export and import or not, etc.

2.3.      Form of contract signing international freight contracts

The form of a contract should comply with national laws of exporting and importing and international conventions. Usually, the contract for the carriage of international goods will have to be in writing to avoid risks.

2.4.      Language of the contract

The parties can agree to choose the language of the contract. However, since it is an international contract, the required language is English. In addition, the parties may have additional contracts in their own language.

2.5.      Contents of the contract signing international freight contracts

The two parties should consider and check carefully the information recorded on the contract, including basic information such as:

–      Information of the carrier, the charterer, the party receiving goods and other related parties (if any);

–      Specific information about the cargo to be transported (type, quantity, volume, cargo condition, etc.);

–      Content of work, in which clearly stating the time and place of delivery;

–      Rights and obligations of the parties;

–      Time of risk transfer;

–      Regulations on force majeure events;

–      Provisions on dispute settlement;

–      Contract costs and costs incurred.

2.6.      Documents Attached to the Contract signing international freight contracts

The most important documents required when signing an international freight contract are the sea waybill, the air waybill and other relevant shipping documents.

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