Table 2: Concept of forwarding business

||Service provision|Rights, duties,<br>liability|B/L issue|Country example and names for<br>operators in statutory laws|
|---|---|---|---|---|
|□<br>**A**<br>**Forwarder as**<br>**“Agent” **<br>**(commission**<br>**agent)**<br>**_*Traditional_**<br>**_definition_**|Acts as an agent on behalf of<br>his principal; act as a<br>commission agent of consigner<br>for ancillary services.<br>Freight forwarder acts normally<br>in his name on behalf and<br>account of a consigner|Do not take<br>carrier’s<br>liability|No -<br>Handle<br>carrier’s<br>B/L|China_(Agent)_<sup>_9_</sup><br>Philippines_(International Freight_<br>_Forwarder)_<br>Japan_(Broker)_<sup>_10_</sup><br>Germany_(“Spediteur”)_<sup>_11_</sup><br>Sudan_(*not in the law, but current role_<br>_of operator)_|
|□<br>**BForwarder**<br>**as“Principal”**<br>**NVO**<br>**/NVOCC**|Performs the carriage of goods<br>by his own means (“performing<br>carrier”) OR<br>Procures carriage of goods in<br>his name and on own account<br>(“contracting carrier”- another<br>carrier is actually shipping the<br>goods)|Incur the same<br>liability as a<br>carrier by land,<br>sea, or air|YES -<br>Issus his<br>own B/L|Brazil_(Operador de Transporte_<br>_Multimodal)_<sup>_12_</sup><br>China_(Independent Operator)_<br>Japan_(Consigned Freight Forwarding_<br>_Business Operator)_<br>Germany_(Spediteur im Selbsteintritt)_<sup>_13_</sup><br>USA_(OTIs, NVOCCs)_<sup>_14_</sup><br>Thailand_(Multimodal Transport_<br>_Operator)_<br>Philippines_(NVOCC)_<br>Nepal_(Multimodal Transport Operator)_<br>Netherlands_(freight forwarder)_<sup>_15_</sup><br>Singapore _(MTO_<sup>_16_</sup>_)_|

(Source: Schramm 2012 and author) With the two distinct concepts, the freight forwarding business is interpreted differently and has different forms of affreightment contract (Figure 2), which makes the regulatory framework opaque. Schramm (2012) summarizes the different forms of affreightment that explains the concepts of forwarding business as indirect conclusion of affreightment. A freight forwarder as “principle” ( □B ) bears full liability concerning the carriage of goods, regardless of whether he acts as performing carrier or contracting carrier. On the other hand, when a freight forwarder as “agent” (□A ) has a _forwarding contract_ , he dispatches goods for carriage with affreightment with the carrier for carriage of goods on behalf of his principal. In this case, because he is not a principal, he does not have to take liability in contracting with shippers or consignees.

> 9 Detailed rules for implementation of regulations of China on the administration of international freight forwarding industry No.82, Chapter 1, Article 2, 2004.

> 10 In Maritime Transportation Law 1949, also referred to JETRO

> <u>http://www.jetro.go.jp/world/japan/qa/import_04/04A‐010132.There is a law that restricts some activities by</u> brokers that may confuse customers with consigned freight forwarders.

> 11 HGB Commercial Code: Freight business; Forwarding business; Warehousing business, §453HGB

> 12 Lei 9611/98 | Lei no 9.611, de 19 de fevereiro de 1998, Transporte Multimodal de Cargas

> 13 HGB Commercial Code: Freight business; Forwarding business; Warehousing business, §458HGB

> 14 Code of Federal Regulations No. 46 ‐ #515 regulations affecting ocean shipping in foreign commerce.

> 15 Dutch Civil Code Book 8 – Transport Law and means of Transport (section 8.2.3 Freight Forwarder)

> 16 Singapore Registry of Accredited Multimodal Transport Operators (*officially, this is not a statutory law)

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