Who Should Bear the Freight Forwarder Fees for Export Shipments?

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I am a staff member of a foreign trade company. Recently, while handling export business, I have some doubts about who should bear the freight forwarder fees. The contract we signed with our client does not clearly specify the ownership of freight forwarder fees. In actual operations, should we exporters pay the freight forwarder fees, or should the foreign importers pay them? I hope friends who understand this situation can help me answer. Thank you!
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Anthony Luo
Anthony LuoYears of service:10Customer Rating:5.0

Trade Compliance ExpertStart a Chat

In the absence of clear contractual agreements, the party responsible for bearing foreign trade export freight forwarder fees typically depends on the trade terms. For common trade terms such as FOB (Free On Board), the importer is responsible for arranging transportation and paying the freight, including freight forwarder fees, while the exporter only needs to deliver the goods onto the ship at the designated port of shipment. For CIF (Cost, Insurance, and Freight) and CFR (Cost and Freight) terms, the exporter is responsible for transportation and paying the freight, and therefore needs to bear the freight forwarder fees. So, you should first determine the trade terms applicable to the contract to roughly ascertain the cost attribution. If the contract does not specify trade terms, both parties should negotiate and determine them as soon as possible to avoid subsequent disputes.

References: Chengdu Railway Export Agency: Do You Really Understand It?
Michael Zhang
Michael ZhangYears of service:10Customer Rating:5.0

Customs Clearance SpecialistStart a Chat

Generally, under CIF and CFR terms, the exporter pays the freight forwarder fees, and under FOB terms, the importer pays. However, if communicated in advance, there can be flexibility. For example, even under FOB terms, if the importer requests the exporter to pay the freight forwarder fees on their behalf, and then reimburse the exporter later.

Linda Guo
Linda GuoYears of service:3Customer Rating:5.0

Trade Dispute MediatorStart a Chat

It can depend on the negotiation power of both parties. If the importer holds a strong market position, they may ask the exporter to bear the freight forwarder fees, even under FOB terms. Conversely, if the exporter is strong, they may have the importer bear the costs.

Robert Tan
Robert TanYears of service:5Customer Rating:5.0

International Market Development AdvisorStart a Chat

If the goods have high added value, to ensure transportation quality and service, the exporter may be willing to bear the freight forwarder fees to better control the transportation process.

Sophia Wang
Sophia WangYears of service:6Customer Rating:5.0

International Logistics CoordinatorStart a Chat

If both parties have a long-term and good cooperative relationship, they may negotiate to take turns bearing the freight forwarder fees to maintain the partnership.

Olivia Liu
Olivia LiuYears of service:6Customer Rating:5.0

Foreign Exchange Risk ManagerStart a Chat

Sometimes freight forwarders may offer preferential packages. If the exporter can obtain a favorable price from the freight forwarder, they may choose to bear the freight forwarder fees themselves to attract clients.

David Chen
David ChenYears of service:10Customer Rating:5.0

Trade Compliance AdvisorStart a Chat

If the export shipment is Less than Container Load (LCL), the cost bearing may be more complicated, and both parties need to communicate with the freight forwarder based on the actual situation to determine who bears the costs.

Richard Wu
Richard WuYears of service:8Customer Rating:5.0

Global Trade Operations ExpertStart a Chat

In some cases, freight forwarder fees may be included in the price of the goods. Although it may not be explicitly stated who pays, it is actually reflected in the price, which needs to be considered comprehensively.

Kevin Huang
Kevin HuangYears of service:3Customer Rating:5.0

E-Commerce Export AdvisorStart a Chat

If the market competition is fierce, the exporter may proactively bear the freight forwarder fees to facilitate the transaction, as a means of offering concessions.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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