Agency agreement
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Agency agreement This agreement is made between: A/
B/
Both parties agree to act as agent for each other in their respective country in undertaking the operations of multi-modal transportation by sea, air and land under the following terms and conditions effective from _____________.
A. Purpose This agreement is for the reciprocal promotion of freight forwarding and logistics services and both parties agreed to develop business between / and any future office around the world.
B. Appointment Each party shall be authorized to act as the non-exclusive agent for the best interests of the other party and shall make no representatives or undertaking on behalf of the other party beyond the scope of this agreement.
C. Scope of cooperation ___________A________________ &___________________________ have entered into this agreement and mutually agreed to cooperate under the following procedures and guidelines:
1. Both parties will provide consignee sales efforts and will make every attempt to ensure routing orders and sales lead in favor of the other party.
2. Both parties shall represent the other party in their respective business territory in the areas of air cargo, full container load (FCL) cargo, less than container load (LCL) cargo, land transportation, customs clearance, handling, delivery of consignment, tracking, sales, collection and remittance of freight and other charges due to the other party.
3. Both parties shall coordinate and monitor with shipping lines and airlines for operations in their territory to ensure a reasonable level of safe, economical and timely delivery of cargo.
4. Upon receipt of documents from the airport of departure / port of loading, the destination party is responsible to send notice of arrivals to the consignee and inform them of the expected arrival dates of the shipment.
5. The party at destination is to ensure release of the shipment to the consignee against presentation of the Original House Bill of Lading (Air, Sea) duly endorsed.
6. The party at destination is to ensure collection of freight charges and any other ancillary charges customary at the port of destination prior to release of the shipment to the consignee. Failure to collect such charges will be the responsibility of the destination office.
7. The party at the load port is to ensure notification to the destination office by fax, email or courier a copy of Master Bill of Lading (Air, Sea), House Bill of Lading (Air, Sea), invoices and other shipping instructions to reach the destination agent prior to vessel arrival and/or deadlines for submission of relevant documents to local authorities at their respective countries.
8. Both parties agree to mutually cooperate to develop additional new business opportunities to include joint sales / marketing activities.
9. Both parties agree to adopt a strictly non-competition policy for each other, and will not disclose any confidential information, such as tariff, customers, etc to any third party.
D. Fees and Charges 1. No handling charges to be debited to either party for shipments that are generated through the sales efforts of the load port agent.
2. For shipment nominated by the destination party, herein called “important nominations” a 50/50 profit share to be shared between the two parties.
3. For Shipments generated through joint sales efforts whereby one office provides sales leads to the other for follow up action to secure the business, the profit is to be shared on a 50/50 profit sharing basis.
4. All profit sharing will be computed based on the net profit earned on the freight. Other profit/loss sharing arrangement should be based on terms that are mutually agreed upon prior to shipment e.g. consolidation / groupage container, etc.
5. Both Parties agree and accept the responsibility as to the layout of the following: a. If House Bill of Lading (Air, Sea) is prepaid, the freight and all ancillary charges on the Master Bill of Lading (Air, Sea) can be paid at loading / destination port.
b. If House Bill of Lading (Air, Sea) is collect, the freight and all ancillary charges on the Master Bill of Lading (Air, Sea) can be paid at loading / destination port.