Freight Forwarding is the backbone of the logistics chain, connecting cargo owners and carriers. Legally, the role of a forwarder is often ambiguous: they can act as an agent (intermediary) or as a principal/carrier. In Georgia, where transit shipments are a vital part of the economy, freight forwarding law regulates complex relationships during multimodal transport (sea, rail, road). An incorrectly drafted forwarding agreement or misallocation of liability often leads to unforeseen financial obligations for the forwarder in case of cargo loss or damage. This service involves legal assistance for freight forwarding companies and their clients to protect their rights and clearly delineate responsibilities.
What Does Freight Forwarding Legal Service Cover?
The service covers all legal aspects of forwarding activities, specifically:
- Drafting Forwarding Agreements: Creating complex contracts that consider FIATA (International Federation of Freight Forwarders Associations) standards and Georgian legislation.
- Liability Insurance Consultation: Analyzing Freight Forwarder Liability Insurance policies and managing insurance claims.
- Disputes with Carriers and Clients: Representation in disputes regarding cargo delay, damage, or loss at any stage of transport.
- Customs and Tax Issues: Legal analysis of tax (VAT) and customs obligations related to the forwarder's role.
- Agent vs. Carrier Status Determination: Legal audit to determine whether the company acts as a forwarder or as a contractual carrier (NVOC) in a specific case.
Common Scenarios and Practical Needs
Legal problems in forwarding activities often arise in the following situations:
- Cargo Damage in Multimodal Transport: When it is difficult to determine at which stage of transport (sea, rail, truck) the cargo was damaged and who is responsible.
- Non-payment by Client: When a client fails to pay service fees, and the forwarder needs to exercise the right of Lien on the cargo.
- Demurrage Disputes: When the carrier demands penalties for cargo detention at the port from the forwarder, and the forwarder tries to pass them on to the client.
- Documentation Errors: Incorrectly filled transport documents (CMR, Bill of Lading, Air Waybill) leading to customs fines.
- Sub-contractor Actions: The forwarder's liability for errors made by third parties (e.g., drivers) hired by them.
Georgian Legal Framework
In Georgia, freight forwarding is regulated by the Civil Code of Georgia (articles on Freight Forwarding). The Code distinguishes the forwarder from the carrier but establishes that if the forwarder carries out the transport with their own means, carrier liability rules apply to them. Also important are the Maritime Code of Georgia and international conventions (such as the CMR Convention for road transport), which are often used during combined shipments. The Law on Entrepreneurs regulates the corporate side of the forwarding company.
In judicial practice, disputes often arise over whether the forwarder acted as an "agent" (who only connects parties) or as a "principal" (who undertakes the full transport obligation). Defining this status is critical for the scope of liability.
Service Process: What to Expect
Cooperation with a lawyer begins with an analysis of existing contracts and the business model. The specialist will develop the text of "Standard Trading Conditions" for your company, minimizing risks. In case of a dispute, the lawyer will prepare recourse claims against the actual culprit (e.g., the carrier) and defend your interests in court. The goal is ensuring the forwarder does not answer for others' mistakes.
Why Choose Legal.ge?
Freight forwarding requires specific knowledge at the intersection of logistics and law. Lawyers listed on Legal.ge are familiar with the inner workings of the transport industry and international practices (FIATA, BIMCO). Protect your business from unforeseen risks and regulate contractual relationships with qualified specialists on Legal.ge.
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