Freight forwarding and logistics contracts
What does a freight forwarder do, what does a carrier undertake and how should logistics services be organised by contract?
Mag. Bernhard Brandauer, Rechtsanwalt
BRANDAUER Rechtsanwälte
Orientation on damages matters in Austria.
A business may carry goods itself, appoint a carrier or instruct a freight forwarder to arrange carriage. In practice, storage, handling, customs support, picking and other services are often added. The contract therefore decides more than the price. It also determines who undertakes each task and where the relevant risk lies.
Under section 407 UGB, a freight forwarder undertakes to arrange the consignment of goods through carriers or sea carriers for the account of another person, the sender, but in its own name. A carrier, by contrast, undertakes under section 425 UGB to perform the carriage itself. A logistics contract may combine both elements with further services. Its precise structure must be assessed from the contract and the actual operation.
This page gives companies, customers and service providers a first framework. It identifies the clauses, instructions and records that support a reliable process and explains when the whole contractual chain should be assessed.
Mag. Bernhard Brandauer, Rechtsanwalt
Who is responsible for which task in your transport order?
Choose the role that best describes your order. This orientation shows which contractual questions should be checked first.
How does your business act in the specific order?
The label used in a contract is not the only factor. Consider whether your business performs the carriage, arranges it in its own name or undertakes further logistics services.
Ihre Orientierung
As a freight forwarder, the order, the selection of carriers and your own contractual role are central.
As a carrier, you undertake the agreed carriage and should record handover and delivery in a verifiable way.
For integrated logistics services, each service and the handovers between them should be described clearly.
Freight forwarder, carrier and logistics provider
The label on an invoice does not decide the issue by itself. The agreed and actually performed services matter.
| Role | Core task | Check especially |
|---|---|---|
| Freight forwarder | Arrange the consignment through carriers or sea carriers for the customer in the forwarder's own name | Order, carrier selection, instructions, remuneration and the forwarder's own liability role |
| Carrier | Perform the carriage of goods by land or inland waterways | Goods, route, handover, delivery, reservations and cargo damage |
| Logistics provider | Combine carriage, storage, handling or other services | Service transitions, inventory, time limits, interfaces and records |
| Customer | Define the objective, goods, instructions and documents | Accuracy of information, approvals, documents and contacts |
A logistics contract is not a single statutory contract type. Its content follows from the agreed services and the applicable statutory rules.
What a freight forwarding contract means
Section 407(1) UGB describes forwarding as arranging the consignment of goods through carriers or sea carriers for the sender's account but in the forwarder's own name. The forwarder therefore typically undertakes to organise the consignment. It does not have to perform the carriage with its own vehicles.
The relationship with the carrier must be distinguished from the relationship between sender and forwarder. Section 407(2) UGB applies, where the forwarding section contains no special rule, provisions concerning commission agents. These include provisions on receiving, storing and insuring the goods. The precise duties also depend on instructions, standard terms and the actual performance.
- The forwarder generally arranges the consignment in its own name for the sender's account.
- The carriage contract with the performing carrier is separate from the forwarding agreement.
- Storage and handling should be described as additional services rather than left implicit.
How to identify a carriage contract
Section 425 UGB defines a carrier as a person who undertakes to perform the carriage of goods by land or on rivers or other inland waters. The focus is therefore the actual carriage from handover to delivery. For international carriage by road, the CMR may also provide the relevant framework.
One business may take on several roles in a single order. A company that first organises transport but undertakes to perform it towards the customer cannot be classified only by the label freight forwarder. The order, consignment note, invoices and the actual use of vehicles and subcontractors should be assessed together.
- The promised service, not only the heading, determines the legal assessment.
- Handover and delivery are important points for records and liability.
- For international carriage, the CMR and national rules must be considered together.
How a logistics contract combines services
A logistics contract may combine carriage, storage, handling, picking, packaging, inventory management, customs support or digital data exchange. Austrian law does not provide one single statutory regime for every logistics contract. Depending on the focus, elements of carriage, forwarding, storage, contract for work and services may apply alongside one another.
The overall arrangement matters. Consider the tasks undertaken, control over the goods, the handovers and whether a specific result or only an activity is owed. A clear service description reduces later disputes about the role and the applicable liability standard.
- Describe carriage, storage, handling and other activities as separate service elements.
- Define the start, end, handover and record for each element.
- Review incorporated standard terms and operating manuals for contradictions.
Contract clauses that should not be missing
A sound contract first describes the shipment and process: type of goods, quantity, packaging, collection and delivery places, time windows, route, loading equipment and special requirements. Temperature-controlled, sensitive or dangerous goods require additional rules on temperature, packaging, marking, monitoring and reporting deviations.
The contract should also cover instructions, approvals and the use of other businesses. Agree who may appoint carriers, when a replacement is allowed, which documents must be available and how delays are reported. Remuneration, invoicing, retention, insurance, liability limits and electronic records matter just as much.
- Do not describe the service only by a broad label such as logistics service.
- Name special goods and special handling duties specifically.
- Organise subcontractors, instructions, approvals and information channels in writing.
- Align liability, insurance, retention and records with the service chain.
Instructions, changes and documentation
Collection places, delivery times, consignees, customs requirements or packaging may change during transport. Such changes should not be passed on only by telephone. The original order, instruction, acceptance and implementation should remain linked to the shipment.
A forwarding or logistics order also requires a check whether an instruction can still be implemented in time and who bears resulting costs or delays. Time stamps, sender, approval, shipment reference and the provider's response are especially useful for a later assessment.
- Record changes with date, time, sender and shipment number.
- Clarify unclear or contradictory instructions before implementation.
- Confirm additional costs and effects on delivery time or liability.
- Keep emails, portal messages and call notes in the shipment file.
Liability at the service chain handovers
Damage often arises at a handover, during handling, in storage or because of incorrect particulars rather than during the drive itself. The assessment therefore requires clarity about when the goods were taken over, who could inspect them and which records describe their condition. The carrier liability page explains loss, damage and delay in more detail.
For international carriage by road, CMR liability rules may apply. Other services or stages may be governed by Austrian rules and contractual arrangements. Liability limits, exclusions and insurance clauses should not be read in isolation. The key questions are which loss arose in which service and under what circumstances.
- Order handover records, consignment notes, warehouse records and photographs by time.
- Assess damage, loss, delay and documentation errors separately.
- Align liability limits and insurance with the goods, route and service.
- Secure the entire contractual and evidential chain after an incident.
Assess cross-border logistics correctly
Cross-border transport adds rules depending on the route, goods and businesses used. For international carriage by road, the CMR is a central starting point. Depending on the activity, Union rules on access to the road transport market, cabotage, drivers and vehicles may also matter.
Not every cross-border service automatically falls under the CMR. Consider the mode of carriage, the places of taking over and delivery and the promised service. Customs documents, import and export, delivery terms and official requirements should be assessed separately. Records should show which party undertook each part.
- Establish the route, taking-over place, delivery place and mode of transport.
- Do not merge CMR, national rules and Union requirements without checking their scope.
- Allocate customs, delivery terms and document duties to the relevant contract stage.
Review contract and process together
A contract may look clear on paper while the daily process follows different rules. Compare the offer, framework agreement, individual order, consignment note, warehouse entries, invoices and complaints. If the contract conflicts with automated transport-management workflows, evidence and liability risks arise.
Before a new logistics relationship starts, agree which data is exchanged, who approves deviations and which records remain available in a dispute. An existing contract deserves review when new warehouses, countries, subcontractors or digital interfaces are added.
- Compare the contract with a real order and the documents actually used.
- Review interfaces between customer, forwarder, carrier and warehouse.
- Treat changes to goods, routes or systems as reasons for a contract review.
- Secure the complete file before individual records are changed.
Questions companies ask about forwarding and logistics
What is the difference between a freight forwarder and a carrier? +
Is a logistics contract regulated by one statute? +
Can a freight forwarder also be liable as a carrier? +
Which records should a logistics provider keep? +
Who bears the risk of a customer instruction? +
Does the CMR apply to every transport? +
Sources
- Unternehmensgesetzbuch, sections 407 to 410
Rules on forwarding, arranging consignments and supplementary duties of the freight forwarder.
- Unternehmensgesetzbuch, sections 425 to 427
Rules on carriers, carriage contracts and central duties in the carriage of goods.
- CMR, Articles 1 and 4 to 11
International carriage by road, consignment notes, required particulars, handover and supporting documents.
- Union rules on road transport
Depending on route, activity and businesses used, additional Union requirements may be relevant.
Related topics
The contractual role is best assessed together with transport records, carrier liability and cross-border carriage.
CMR and the transport contract
Contractual foundations and responsibilities in international carriage by road.
Consignment note and documentation
Particulars, documents, reservations and records for a traceable shipment file.
Carrier liability and cargo damage
Liability for loss, damage and delayed delivery.
Cross-border carriage of goods
Route, CMR, Union requirements and records in international transport.
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