This time we have prepared for you a slightly dry theme for the summer months, but for all of us who are in any way connected in the freight forwarding business, an important theme.
Today we write about the types of representation in the freight forwarding business.
In the countries of the European Union, freight forwarding is defined as:
- COMMISSION TRANSACTION when the freight forwarder performs his work in his name and on behalf of another
- AGENCY TRANSACTIONS when the freight forwarder performs his work in a foreign name and on a foreign account and
- INDEPENDENT BUSINESS OPERATIONS when the freight forwarder performs his work in his name and on his account.
Freight forwarders can represent their business partners in two ways. Representation can be direct or indirect. What kind of representation it will depend on the type of service that the freight forwarder will provide for its business partner.
DIRECT REPRESENTATION - Direct representation, the agent acts in the name and on behalf of the represented.
INDIRECT REPRESENTATION - In indirect representation, the agent acts on his behalf.
Next time we will write for you about domestic and international legal sources in freight forwarding.
For all information, it is also available for you during the hot summer months.