Shipping Company Agreement
Shipping Company Agreement
This Shipping Company Agreement ("Agreement") is entered into by and between [Your Company Name], a shipping company ("Shipper") and its customer, collectively referred to as the "Parties." This Agreement outlines the terms and conditions under which [Your Company Name] will provide shipping services for goods, cargo, and other related services. It is effective as of the date it is signed by both parties. By signing, both parties agree to be bound by all the stipulations within this document.
1. Definitions
1.1 Goods or Cargo
For the purposes of this Agreement, "Goods" or "Cargo" refers to any items, materials, merchandise, or products that the Shipper agrees to transport on behalf of the customer under the terms of this Agreement. These Goods or Cargo may vary widely in size, shape, and type, including fragile, perishable, or hazardous items. The Customer is responsible for ensuring that the goods are properly classified and suitable for shipment based on their characteristics. Any special requirements for handling, storage, or delivery must be communicated to [Your Company Name] at the time of booking.
1.2 Shipping Services
"Shipping Services" refers to the full range of services related to the transportation of Goods or Cargo from the point of origin to the point of destination. This includes, but is not limited to, services such as storage, packaging, loading, unloading, transportation via sea, land, or air, and any ancillary services. [Your Company Name] may also provide value-added services such as customs clearance, delivery scheduling, and insurance, as agreed upon by both Parties. The scope of services may vary depending on the specific shipping route, destination, and nature of the Goods.
1.3 Terms of Shipment
"Terms of Shipment" refer to the specific agreements regarding the delivery times, costs of shipment, routes, and conditions of transport for Goods or Cargo. These will be outlined in an accompanying shipment schedule or booking agreement, which may vary based on the type of Goods being shipped, the destination, and any special requirements stipulated by the Customer. Any changes to the shipment terms after booking must be agreed upon by both Parties in writing.
1.4 Customer
The term "Customer" refers to any individual, entity, or organization that enters into an agreement with [Your Company Name] to transport Goods or Cargo. The Customer may be the party directly requesting the services or any representatives, employees, or affiliates acting on behalf of the Customer. The Customer is responsible for providing accurate and complete information regarding the Goods being shipped, including any relevant documentation.
1.5 Shipper
"[Your Company Name]" refers to the entity providing the shipping and transportation services, including but not limited to transporting goods, providing packaging, offering storage, and completing customs processes. [Your Company Name] is fully responsible for ensuring that the shipping services are performed according to the agreed-upon standards, delivery schedules, and legal requirements. [Your Company Name] is also responsible for arranging the necessary transportation methods (sea, air, land) as outlined in the Terms of Shipment.
2. Term of Agreement
2.1 Duration of Agreement
This Agreement shall remain in effect from the date of execution until terminated by either party as specified in Section 5.1 below. The minimum term of the Agreement shall be [2] years, starting from the effective date of this Agreement. Following the initial term, the Agreement will continue unless terminated or renegotiated by the Parties. Either Party may initiate the renegotiation or termination process as necessary.
2.2 Renewal
Upon the expiration of the initial term, this Agreement may be renewed automatically for successive [1]-year periods unless either party provides written notice of non-renewal at least [30] days prior to the expiration of the current term. The renewal terms and conditions will remain the same unless otherwise agreed in writing by both Parties. Upon renewal, the Parties will confirm or adjust the services, pricing, and other key elements as required.
3. Shipping Services
3.1 Scope of Services
[Your Company Name] shall provide the following services to the Customer under this Agreement:
|
Service Type |
Description |
Cost per shipment |
|---|---|---|
|
Freight Transport |
Transport of goods by sea, air, or land. |
$500 |
|
Packaging |
Secure packaging of goods for shipment. |
$100 per pallet |
|
Loading/Unloading |
Loading and unloading services at port/warehouse. |
$150 per container |
|
Customs Clearance |
Clearing goods through customs at destination. |
$200 |
|
Warehousing |
Temporary storage of goods while in transit. |
$50 per day |
These services are integral to the safe and timely delivery of the Goods or Cargo. Should the Customer require additional services outside of the listed options, they must negotiate the terms of such services with [Your Company Name] in writing. All services provided under this Agreement are subject to availability and the terms outlined herein.
3.2 Delivery Timeframe
[Your Company Name] will provide an estimated delivery timeframe at the time of shipment booking, based on standard routes and conditions. This timeframe will include time for customs clearance, loading/unloading, and any other necessary procedures for safe transportation. While [Your Company Name] strives to meet these timeframes, they are subject to change due to unforeseen circumstances such as adverse weather conditions, port congestion, or regulatory delays. Any changes to the estimated timeframe will be communicated promptly to the Customer.
3.3 Restrictions on Shipping
The following items are prohibited from being shipped under this Agreement:
-
Hazardous materials or goods requiring special handling and transport conditions without the proper documentation
-
Perishable goods requiring temperature-controlled environments, unless specifically agreed upon in writing
-
Items that are illegal or prohibited by law in the destination country
-
Goods that may pose a risk to other shipments or personnel
The Customer is responsible for ensuring that all Goods or Cargo comply with relevant legal and regulatory requirements, including any customs declarations or restrictions that may apply. If any prohibited items are discovered during the shipping process, [Your Company Name] reserves the right to take appropriate action, including halting the shipment or returning the Goods at the Customer's expense.
4. Payment Terms
4.1 Shipping Costs
The Customer agrees to pay [Your Company Name] for shipping services as outlined in Section 3.1. The agreed-upon rates are exclusive of any applicable taxes, duties, or third-party fees. The total cost for shipping is determined based on the weight, size, and destination of the Goods or Cargo, and may vary depending on the services selected. Additional fees may apply if changes are made to the shipment after it has been processed.
4.2 Payment Schedule
The Customer will receive an invoice for the full cost of shipping at least [5] business days prior to the scheduled shipment. Payment terms are as follows:
|
Payment Method |
Due Date |
Discount Available |
|---|---|---|
|
Bank Transfer (Wire) |
5 business days |
5% off if paid 3 days early |
|
Credit Card |
Upon receipt of invoice |
No discount |
|
Company Check |
10 business days |
2% off if paid within 7 days |
Payment must be received before shipment is initiated unless otherwise agreed upon by the Parties. Failure to meet payment deadlines may result in delays or cancellation of shipment.
4.3 Late Payment
In the event that payment is not received by the due date, the Customer will incur a late fee of [1.5]% of the outstanding balance for each month the payment remains overdue. If payments remain unpaid for more than [30] days, [Your Company Name] reserves the right to suspend or terminate the shipping services until payment is made in full. The Customer will also be responsible for any costs incurred due to the delay, including but not limited to storage or additional shipping charges.
4.4 Currency and Taxes
All payments under this Agreement will be made in U.S. Dollars ($), and the Customer is responsible for any applicable taxes or duties imposed by law, including but not limited to customs duties, import/export taxes, and VAT. The Customer agrees to indemnify [Your Company Name] for any such taxes or duties levied by the government authorities of the origin or destination country.
5. Termination of Agreement
5.1 Termination by Either Party
Either party may terminate this Agreement at any time with [60] days' written notice. If the Agreement is terminated prior to the completion of the current shipment cycle, the Customer remains responsible for all costs and fees associated with the completed portion of the service. Both parties will make reasonable efforts to complete any pending shipments prior to termination, to avoid disruption in the shipping process.
5.2 Termination for Cause
Either party may terminate this Agreement immediately for cause, including but not limited to the following:
-
Non-payment or late payment by the Customer
-
Material breach of any provision of this Agreement
-
Illegal or prohibited items being shipped without proper disclosure
-
Failure to adhere to local or international shipping regulations
In the case of termination for cause, the terminating party shall be entitled to seek damages, including but not limited to compensation for lost revenue, legal fees, and any additional costs resulting from the breach of contract. The Customer shall also be responsible for the payment of any fees accrued prior to termination.
6. Liability and Damages
6.1 Limitation of Liability
[Your Company Name]'s liability for damage or loss of goods during shipping is limited to the lesser of:
-
The actual value of the Goods or Cargo, or
-
[$500] per shipment
The Customer agrees to obtain their own insurance coverage if additional protection is desired for valuable, fragile, or high-risk Goods or Cargo. [Your Company Name] will not be held liable for any loss, theft, or damage caused by factors outside of its control, including but not limited to weather conditions, accidents, or acts of terrorism.
6.2 Claims Process
In the event of damage or loss, the Customer must file a claim with [Your Company Name] within [30] days of the delivery date. Claims should include a description of the damage or loss, supporting documentation, and any other information requested by [Your Company Name]. The Customer agrees to cooperate with [Your Company Name] in the investigation of the claim, including providing any relevant information or evidence.
7. Insurance
7.1 Insurance Coverage
While [Your Company Name] will take reasonable precautions to ensure the safe transport of Goods or Cargo, it is recommended that the Customer purchase insurance to cover any potential damage, loss, or theft that may occur during transit. [Your Company Name] offers insurance as an optional service, which will cover the Goods for their full value as stated by the Customer. Insurance premiums will be calculated based on the declared value of the Goods and the destination, and will be added to the overall shipping cost.
7.2 Customer's Responsibility for Insurance
If the Customer decides not to purchase insurance through [Your Company Name], the Customer acknowledges that they are fully responsible for any loss, damage, or theft of Goods during shipment. In such cases, [Your Company Name] will not be held liable for any claims or compensation related to the condition of the Goods upon delivery. It is the responsibility of the Customer to secure appropriate insurance coverage, whether through [Your Company Name] or an independent provider, before the shipment is dispatched.
8. Force Majeure
8.1 Definition of Force Majeure
Neither party shall be held liable for failure to perform any of its obligations under this Agreement if such failure is caused by an event or circumstance beyond the reasonable control of the party, including but not limited to natural disasters, strikes, lockouts, labor disputes, accidents, war, terrorism, pandemics, or any other event that prevents or delays the performance of the Agreement. This condition is referred to as "Force Majeure."
8.2 Notification and Mitigation
In the event of a Force Majeure event, the affected party shall promptly notify the other party in writing of the occurrence of such event and shall take reasonable steps to mitigate the impact of the event on the performance of the Agreement. If the Force Majeure event continues for more than [30] days, either party may terminate the Agreement by providing written notice to the other party without penalty. Both parties will make reasonable efforts to resume normal operations as soon as possible after the event ends.
9. Confidentiality
9.1 Confidential Information
During the course of this Agreement, both parties may exchange confidential information, including but not limited to business plans, shipping details, and proprietary systems or processes. Both parties agree to maintain the confidentiality of this information and refrain from disclosing it to any third party without the prior written consent of the other party, unless required by law.
9.2 Exceptions
The obligations of confidentiality will not apply to information that:
-
Is or becomes publicly available without breach of this Agreement
-
Is lawfully obtained from a third party not bound by confidentiality obligations
-
Is required to be disclosed by law or regulation
In any case where disclosure is required by law, the disclosing party shall promptly notify the other party to allow for any potential objection or protection of confidential information.
9.3 Duration of Confidentiality Obligation
The confidentiality obligations of both parties shall remain in effect for a period of [5] years following the termination or expiration of this Agreement, unless otherwise agreed in writing.
10. Governing Law and Dispute Resolution
10.1 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction in which [Your Company Name] is incorporated, without regard to its conflict of law principles. The parties agree that any disputes arising under this Agreement will be subject to the exclusive jurisdiction of the courts in that jurisdiction.
10.2 Dispute Resolution
In the event of any dispute arising from or in connection with this Agreement, the parties agree to first attempt to resolve the dispute through informal negotiation. If the dispute cannot be resolved informally within [30] days, the parties will proceed to mediation before an independent mediator agreed upon by both parties. If mediation fails, the dispute shall be resolved by arbitration under the rules of the [arbitration association] in the applicable jurisdiction. The decision of the arbitrator(s) shall be binding and final.
10.3 Costs of Dispute Resolution
Each party will bear its own costs related to any dispute resolution, including legal fees and the cost of the mediator or arbitrator, unless the arbitrator or mediator rules otherwise in favor of the prevailing party.
11. Signature
The undersigned parties acknowledge that they have read, understood, and agreed to the terms and conditions set forth in this Shipping Company Agreement.
[Your Company Name]
Name:
Title:
Date:
Customer
Name:
Title:
Date:
