How to issue a forwarding order: instructions, the transport file, changes and the distinction between forwarder and carrier.
Mag. Bernhard Brandauer, Austrian attorney-at-law
BRANDAUER Rechtsanwälte
Mag. Bernhard Brandauer assists with the legal assessment of transport contracts, cargo damage and freight claims.
A forwarding order is more than a short message containing a collection point and a delivery address. The freight forwarder must organise the shipment, protect the sender’s interests and follow the sender’s instructions. The clearer the order and its documents, the easier it is to establish what was agreed, changed and actually carried out.
Problems often arise not when the order is first placed, but when instructions change, documents are missing or different records contradict each other. This article explains how businesses can formulate clear instructions, which documents belong in the transport file and when a forwarder should ask for clarification.
The focus is the forwarding business under Austrian law. If the forwarder carries the goods itself, the rules applying to a carrier must also be considered. That is why the distinction from the CMR transport contract matters.
Classify whether the instruction is clear, was changed during transport or needs clarification because the documents conflict.
The form and detail of the instruction determine whether the forwarder can carry it out reliably.
Keep the order, description of the goods, package details, delivery point, consignee, deadline, documents and special requirements together. Have later changes confirmed in writing and retain the forwarder’s response.
Record the content, time and recipient of the change. Clarify whether the goods remain under the sender’s power of disposal, whether the forwarder can implement the change and what extra costs or risks may arise. Have the implementation confirmed.
Compare the conflicting documents and identify the open issue precisely. Do not add new assumptions to the order while the issue remains unresolved. Keep the request, response and version actually used for the shipment.
Under section 407 of the Austrian Commercial Code, a freight forwarder is a person who undertakes, in their own name and for the account of another person, to arrange the shipment of goods through carriers or sea carriers. The forwarder therefore generally organises the shipment. The forwarder is not automatically the same person as the carrier who physically transports the goods.
Section 408 of the Austrian Commercial Code requires the forwarder to arrange the shipment with the diligence of a prudent business operator. This includes selecting carriers, sea carriers and intermediate forwarders, safeguarding the sender’s interests and following the sender’s instructions. The instruction is therefore not a minor addition, but a central working document.
The parties should state expressly what service is owed. Is the task limited to organisation, does it include selecting a carrier or will the forwarder also carry the goods? Under section 412 of the Austrian Commercial Code, the forwarder may generally carry the goods itself unless the parties have agreed otherwise. In that case, the forwarder also has the rights and duties of a carrier.
A useful instruction answers more than the question where the goods should go. It describes the shipment, the desired process and the limits within which the forwarder may act. Include the type and quantity of goods, packages, dimensions, weight, collection point, delivery point, consignee, contact person and requested delivery period.
Special characteristics must be stated precisely. This may concern sensitive goods, temperature requirements, dangerous goods, high-value cargo, fixed time windows or a prohibition on transshipment. Use the relevant documents and avoid vague terms such as “urgent” or “handle with care” where concrete organisational requirements are intended.
Commercial requirements should also be traceable. If a particular transport method, carrier or insurance arrangement is requested, put it in the order. Distinguish a preference from a binding instruction. If the wording leaves a major decision open, the forwarder should ask rather than silently decide it.
For international carriage by road, the information may also be relevant to the consignment note. Article 6 CMR refers, among other things, to the sender, carrier, places of taking over and delivery, consignee, description of the goods, packages, marks, numbers and weight. The forwarding order and the consignment note are not the same document, but they should be consistent.
The transport file should contain the forwarding order in the version actually issued. Add the description of the goods, packing list, invoice or delivery documents, customs and accompanying documents, agreed time windows and special instructions. Do not overwrite the original version when an instruction changes. Otherwise it may be difficult to establish which instruction applied at a particular time.
Keep the communication with the forwarder as well. This includes the order confirmation, questions, answers, status messages, delay notices, handover records and the freight documents ultimately used. A short written confirmation can be sufficient if it identifies the instruction, the time and the responsible person.
The allocation must remain clear for several shipments or partial lots. Use a shipment number, order number, package number or another stable reference. Documents that merely refer to “the delivery” are less useful in a dispute than a chronological file with a clear allocation.
The shipment documents checklist helps prepare the file before handover. If cargo is damaged, the cargo damage documentation checklist provides an additional structure.
A new delivery address, a stop, another consignee or an additional documentation requirement can change the original order. Do not communicate the change only by telephone. Record who issued it, when it arrived, which shipment it concerns and what action is requested.
For international carriage by road, the CMR recognises a right of disposal over the goods. Under Article 12 CMR, the sender may, subject to the Convention’s requirements, request that the carriage be stopped, that the delivery place be changed or that the goods be delivered to another consignee. This right has specific conditions and limits and must not be transferred automatically to every forwarding order.
When a change arrives, the forwarder should consider whether it can still be implemented in practice and in time. The forwarder should also clarify extra costs, waiting time, customs issues and liability risks. The answer should allow the sender to make an informed decision. A status message without a clear link to the instruction is not enough if a material issue remains unresolved.
If an instruction is rejected or only partly implemented, record that as well. Keep the reason, the clarification request and the further agreement. This makes it possible to establish whether the original instruction, a permitted change or an independent decision determined the further course of the shipment.
The legal role determines which duties and liability rules must be examined. If the forwarder arranges carriage through a carrier, organisation is the main task. If the forwarder carries the goods itself, section 412 of the Austrian Commercial Code applies. In a forwarding arrangement for a fixed charge, section 413 provides that the forwarder has only the rights and duties of a carrier.
For international carriage by road, it must also be examined whether the CMR applies. The CMR consignment note documents the carriage, but it does not replace a review of the forwarding order. If the order, consignment note, packing list and delivery records differ, each discrepancy should be clarified.
The freight forwarding and logistics contracts overview explains the roles in a wider context. For loss or cargo damage, the CMR liability check offers initial orientation.
Only stating the delivery address: Without a description of the goods, package details and special requirements, the order may be too open for reliable execution.
Failing to confirm telephone changes: A later instruction should be allocated to the correct shipment and answered in writing.
Overwriting documents: The original instruction and later versions should remain available with their times and senders.
Treating forwarder and carrier as the same role: Organising carriage, carrying the goods itself and forwarding for a fixed charge may have different legal consequences.
Missing contradictions between order and consignment note: Different quantities, consignees, locations or deadlines should be clarified before handover.
Looking at damage only at the end: If goods are lost, damaged or delayed, the transport file and notices to the correct contractual party should be secured early.
Give every forwarding order a clear reference and keep the order, attachments, questions, confirmation and freight documents in a chronological file. Before handover, check that the description of the goods, packages, consignee, delivery point and special instructions match.
For changes, record the new content, receipt, affected shipment and the forwarder’s response. After delivery, add the consignment note, delivery note, receipt confirmation and any damage or delay notices. This allows a legal review to start from concrete documents.
If the goods are valuable, the instructions are disputed, the forwarder carries the goods itself or damage has already occurred, the transport file should be reviewed promptly. The firm can clarify the roles of the parties, identify missing records and discuss the next sensible steps.
It should normally include the goods, quantity, packages, collection and delivery points, consignee, contact person, requested period, special characteristics and required documents. Clear instructions make it easier to review the execution.
Section 408 of the Austrian Commercial Code requires the forwarder to protect the sender’s interests and follow the sender’s instructions. Whether a particular instruction can be carried out depends on its content, timing, the agreement, the transport status and other legal requirements. Questions and deviations should be recorded.
A change may be possible, but it must reach the correct contractual party in a traceable way and be practically feasible. For CMR carriage, the requirements for the right of disposal under Article 12 CMR must be considered. Record the content, time, receipt and implementation of the change.
This depends on statutory retention duties, the agreement and possible claims. Section 414 of the Austrian Commercial Code contains specific limitation rules for claims against a forwarder. Businesses should preserve the complete transport file in a way that keeps the transaction and any claim review traceable.
Roles, services and records in forwarding business.
The framework for international carriage by road.
Important entries and checks for the consignment note.
Organise the documents before the goods are handed over.
Briefly describe the route, the parties and the event. We will discuss which documents and next review step may be useful.
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