Also known as:ocean freight forwarder · ocean freight forwarding · OFF · freight forwarder
Written by attorneys · grounded in primary & secondary sources — see below
A specialized intermediary in maritime shipping that arranges transportation of cargo by ocean carriers without issuing its own bill of lading. The forwarder coordinates with the shipper and the actual ocean carrier and receives compensation from both parties for its services.
Sources & Authorities
How it applies
Common Examples
6
Forwarder Coordinates Last-Minute Booking
Odyssey Logistics, an ocean freight forwarder, receives an urgent request from a textile exporter to move containers on a vessel departing in two days. The forwarder contacts the ocean carrier, secures space, prepares the documentation package, and invoices both the exporter and the carrier for its services.
Forwarder Books Marina Cargo Move
Odyssey Logistics, an ocean freight forwarder, improves a private marina used to load client cargo. Federal authorities assert a navigational servitude over the waters. The company claims the improvement created a compensable property interest that the government cannot take without payment.
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Uniform Acts
Model Codes
Common Law
Restatements
Hornbooks
Kaiser Aetna v. United States444 U.S. 164, 176 (1979)
Forwarder Enforces Forum Clause
Oceanview Properties hires Odyssey Logistics, an ocean freight forwarder, to ship goods under a bill of lading containing a foreign forum-selection clause. When cargo damage occurs, the shipper sues in a U.S. court. The forwarder moves to enforce the clause as the party that arranged the carriage contract.
Vimar Seguros y Reaseguros, S.A. v. M/V Sky Reefer515 U.S. 528 (1995)
Forwarder Faces Punitive Award
Odyssey Logistics, an ocean freight forwarder, negligently routes hazardous cargo that spills and causes environmental harm. A jury awards punitive damages against the company. The forwarder challenges the award as excessive under maritime punitive-damages standards.
Exxon Shipping Co. v. Baker554 U.S. 471 (2008)
Forwarder Seeks Forum Dismissal
Osprey Aviation retains Odyssey Logistics, an ocean freight forwarder, under a contract with a London forum-selection clause. A dispute arises over damaged cargo. The forwarder seeks dismissal of the U.S. action to enforce the contractual forum.
The Bremen v. Zapata Off-Shore Co.407 U.S. 1 (1972)
Forwarder Liable for Barge Mooring
Odyssey Logistics, an ocean freight forwarder, contracts to move cargo by barge. The barge breaks loose because the mooring was inadequate. The company is held liable for resulting damages under the maritime negligence standard that weighs the burden of precautions against the probability and gravity of harm.
United States v. Carroll Towing Co.159 F.2d 169 (2d Cir. 1947)
Common questions
Frequently Asked
3
How does an ocean freight forwarder differ from an NVOCC?+
An ocean freight forwarder does not issue a bill of lading and receives compensation from both the customer and the ocean carrier. An NVOCC operates as a carrier, issues its own bill of lading, and is paid only by the ocean carrier with which it contracts.
Supporting sources
Who pays an ocean freight forwarder for its services?+
The forwarder receives payment from both its customer and the ocean carrier. This dual compensation structure distinguishes the forwarder from other intermediaries that receive payment from only one party.
Supporting sources
Does an ocean freight forwarder act as a carrier?+
No. The forwarder arranges carriage but does not assume carrier status or issue a bill of lading. The actual ocean carrier performs the transportation and issues the bill of lading.
Supporting sources
444 U.S. 164 (1979)Property
…a pond separated from Maunalua Bay by a barrier beach. In order to make the pond into a marina that would be open to the Pacific Ocean, Kaiser Aetna dredged a channel through the barrier beach. The Army Corps of Engineers issued a permit allowing the dredging, but the permit contained a proviso that the marina would be a…