Differences between the forwarding and transport orders - Euro24

Differences between the forwarding and transport orders

Not everyone is aware of the fact that there are some differences between transport and forwarding, which is why some people incorrectly use these definitions interchangeably. You should start from the very beginning. The freight forwarder is responsible for organizing the shipment, and the carrier is responsible for the transport. After accepting the forwarding order, the forwarder’s task is to select the carrier by handling over the transport order. It also happens that the freight forwarder accepts a transport order only to sell it to the carrier.

The best solution is when the company we work with deals with both transport and forwarding, and therefore, offers comprehensive services, such as EURO24. Below you can find differences between these two areas.

Forwarding order – what exactly is it?

A forwarding order can be found in many forms – electronic, by telephone, or in the form of a document, or even verbally. Such an order has a lot of information that is needed to carry out the transport operation. This is, for example, the payment date, the method of securing the goods, the type of cargo, as well as its value, danger class and transport time. If a partial or total loss occurs, the forwarding order is then the document that is taken into account. If damage occurs, the insurer is obliged to check if the freight forwarder has properly performed his work.

What elements must the forwarding order consist of?

  • Marking the document, and therefore calling it a forwarding order or an order to arrange transport,
  • Word “rate” or “rate for the service”,
  • Legal basis, so that the rights and obligations of each party can be established.

What is a transport order?

The transport order is a document at the time of performance of the carriage contract. Often, such orders are carried out via transport platforms. The order offer on the platform is an invitation to accept its terms of a given contract which are determined in the form of an auction. They concern the valuation of transport, vehicle load capacity as well as the required documentation. The contract is valid from the moment the contractor sends back signed documents to the commissioning party.

What must be included in the transport order?

  • Marking the document as transport order or transport,
  • Legal basis for establishing the obligations and rights as well as the liability of each party to the contract,
  • The word “freight”, or “payment for freight”, in the form of the remuneration amount for the transport service.

Main differences between a forwarding order and a transport order?

These two orders mainly differ in terms of the scope of their responsibilities. Forwarding orders are characterized by the fat that the freight forwarder’s liability has certain limitations, because he doesn’t bear it for subsequent shippers and carriers. However, when the forwarder is responsible for transport, he also takes over all the rights and obligations of the carrier.

The carrier is responsible for the transport order. It is generally accepted that the first carrier is responsible for people with whom they cooperate during the subsequent stages of transport. The scope of the freight forwarder’s liability is specified in the Civil Code. Most often, they are only responsible for choosing the carrier.

 

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