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Air Freight Shipping Agreement

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Air Freight Shipping Agreement

Agreement No.:     Effective Date:

RECITALS

WHEREAS, Carrier: is duly licensed to perform air freight carriage and related logistics services; and

WHEREAS, Shipper: requires Carrier to transport cargo by air in accordance with the terms of this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the carriage, handling, and delivery of cargo as set forth herein.

PARTIES

SCOPE OF WORK

Carrier shall provide air freight transportation, handling, documentation and related services for cargo tendered by Shipper in accordance with the terms of this Agreement. Specific shipment details and any special services shall be documented on individual shipment orders or air waybills that reference this Agreement.

SHIPMENT DETAILS (EXAMPLE PER SHIPMENT)

Gross Weight:

AWB No.:

Flight No.:

PAYMENT TERMS

In consideration for the services described herein, Shipper shall pay Carrier the charges set forth below in accordance with the invoicing and payment schedule.

Invoice Due (days):

Late Fee:

TERM AND TERMINATION

This Agreement shall commence on and shall continue until unless earlier terminated in accordance with this section.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within the notice period specified above following written notice.

CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any non-public business, financial or technical information of the other party obtained in connection with this Agreement, except as required by applicable law or necessary to perform obligations under this Agreement. The confidentiality obligations set forth in this paragraph shall survive termination of this Agreement for a period of five (5) years.

LIABILITY, INSURANCE AND INDEMNITY

Carrier shall at all times maintain insurance customary and adequate for the carriage of air cargo and shall provide proof of such insurance upon reasonable request. Carrier's liability for loss, damage or delay shall be governed by the terms and limitations set forth on the applicable air waybill and, where applicable, by the relevant international conventions governing carriage by air. To the extent permitted by law, Carrier's liability for loss or damage to cargo arising from Carrier's negligence shall not exceed the lesser of the value of the cargo or the limits applicable under the controlling transport document.

Shipper shall indemnify, defend and hold harmless Carrier from and against any claims, losses, liabilities, damages and expenses (including reasonable attorneys' fees) arising out of Shipper's breach of this Agreement, Shipper's negligence, or the tendering of improperly described, packaged or declared cargo, including hazardous materials not properly declared.

FORCE MAJEURE

Neither party shall be liable for any failure or delay in performance caused by events beyond its reasonable control, including but not limited to acts of God, war, civil unrest, labor disputes, governmental action, pandemics, or severe weather. The affected party shall notify the other party promptly and shall use commercially reasonable efforts to resume performance as soon as practicable.

COMPLIANCE, DANGEROUS GOODS AND CLAIMS

Shipper shall comply with all applicable laws, regulations and carrier instructions governing the transport of goods, including those governing the classification, packaging, marking and documentation of dangerous goods. Carrier may refuse to accept or may discharge at any point any cargo that is not properly declared, packaged or documented.

All claims for loss, damage or delay must be submitted in writing to the other party no later than days from delivery or from the date delivery was due. Failure to submit timely claims shall be a bar to recovery to the extent permitted by applicable law.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction specified below, without regard to conflict of law principles.

ENTIRE AGREEMENT

This Agreement, together with the applicable shipment orders and air waybills expressly referencing this Agreement, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations and agreements, whether written or oral. No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

MISCELLANEOUS

Notices required under this Agreement shall be in writing and delivered to the addresses provided above. If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain effective to the fullest extent permitted by law.

Carrier:

By:

Date:

Shipper:

By:

Date:

Enter text✕

What an Air Freight Shipping Agreement Covers

An Air Freight Shipping Agreement is a written contract that sets terms between a shipper and an air carrier or freight forwarder for transporting goods by air. It defines responsibilities such as pickup, handling, routing, delivery, insurance, liability limits, customs clearance obligations, and payment terms. The agreement typically references air waybills, Incoterms, hazardous materials rules, and any service level commitments. Parties use it to allocate risk, specify claims procedures, and document required permits and manifests. Use of electronic signatures and records is generally permitted under U.S. law when requirements are met.

Why a Clear Agreement Matters

Using a formal Air Freight Shipping Agreement clarifies liability, insurance, and customs responsibilities, reducing disputes and cargo delays. When executed electronically with proper consent and audit trails it satisfies ESIGN and UETA standards for enforceability in most U.S. transactions.

Why a Clear Agreement Matters

Who Typically Uses This Agreement

Organizations and individuals who frequently arrange air shipments use this agreement to set clear expectations and limit risk with carriers.

  • Freight forwarders documenting terms with airlines, customs brokers, and ground handlers.
  • Manufacturers and exporters shipping high-value or time-sensitive goods internationally by air.
  • Importers, logistics teams, and brokered carriers needing clarity on claims, liability, and insurance.

Typical signatories include corporate shipping managers, carrier representatives, customs agents, and legal counsel for contract review.

Core Clauses to Include

Essential clauses and operational terms that should appear in a professional Air Freight Shipping Agreement to allocate responsibility and govern performance.

Parties

Identify shipper, consignee, carrier, and any agents with full legal names, addresses, contact points, and the role each party will perform during the shipment lifecycle.

Scope of Services

Specify pickup, transit routing, air waybill handling, delivery terms, any transshipment rights, and obligations for customs clearance to avoid ambiguity in operational responsibilities.

Rates & Payment

Set freight charges, currency, payment terms, invoicing timelines, applicable surcharges (fuel, security, handling), and consequences for late payment including interest or suspension.

Liability & Insurance

State carrier liability limits, cargo valuation methodology, required insurance coverage, who arranges policies, and the procedure for filing claims and subrogation rights.

Compliance

Require adherence to hazardous materials regulations, export controls, customs laws, Incoterms referenced, and any required permits or export documentation.

Claims Procedure

Outline notice periods, documentation required for loss or damage claims, time bars for filing and litigation forum for dispute resolution including governing law.

Step-by-Step: Complete and Execute the Agreement

Step-by-step process to complete and execute an Air Freight Shipping Agreement for a single shipment.

  • 01
    Prepare Document: Gather shipment details, parties, and documentation.
  • 02
    Verify Identifiers: Confirm airway bill, commodity codes, and permits.
  • 03
    Sign Agreement: Obtain signatures and dates from authorized signers.
  • 04
    Distribute Copies: Provide executed copies to carrier, shipper, and customs broker.

How to Configure an Online Workflow

Configure an online workflow for drafting, approving, signing, and distributing the Air Freight Shipping Agreement.

Field Configuration
Template Save agreement as reusable template in library
Signer Order Set role-based, sequential signing with email or SMS authentication
Conditional Fields Show insurance fields when declared value exceeds threshold
Notifications Auto-email executed PDF and audit trail to stakeholders

Technical and Security Considerations for eSigning

Technical and integration considerations for eSigning, notarization, and system-to-system transfer of Air Freight Shipping Agreements.

  • File Formats: PDF, DOCX, and XML supported
  • Integrations: Connectors with ERP, TMS, and CRMs
  • Signer Authentication: Email, SMS codes, KBA, or 2FA

Where to Send Executed Copies and Who Receives Them

Where to send or file the executed agreement and how routing typically works across parties and systems.

  • Carrier Copy: Provide carrier with signed agreement and airway bill reference.
  • Shipper Copy: Retain original executed agreement in shipping records.
  • Customs Broker: Send commercial invoice, packing list, and agreement as needed.
  • Digital Archive: Store PDF and metadata in document management system.

Key Dates to Track

Key dates and deadlines to track around agreement execution, cargo movement, customs clearance, claims, and regulatory filings to avoid penalties.

Execution Date and Effective Date:

Execution date ties to service start and statute calculations.

Shipment Pickup Window:

Carrier availability and pickup appointment windows in contract.

Customs Filing Deadlines:

Provide commercial documents before arrival to avoid clearance delays.

Claims Notice Periods:

Observe short notice periods for damage or loss claims.

Record Retention Start:

Retention clock starts on execution or final delivery date.

Milestone Timeline for a Typical Shipment

Sequential milestones from booking and pickup through transit, delivery, and potential claims resolution for a typical air freight shipment.

01

Booking and Confirmation

Shipper books space; carrier confirms routing and capacity.

02

Pickup and Transport

Goods handed to carrier; airway bill issued and tracking started.

03

Customs Clearance

Broker files declarations; duties paid or bonded for import.

04

Delivery and Claims Window

Final delivery; inspect cargo and initiate claims within contract periods.

Common Preparation Mistakes to Avoid

  • Failing to specify the same routing terms and Incoterms leads to disputes over responsibility for customs and delivery costs, increasing exposure to penalties and delays.
  • Leaving declared value blank or inconsistent with commercial invoices can invalidate insurance coverage and reduce recovery in loss claims.
  • Using unsigned or improperly authorized signature blocks causes enforceability issues and may trigger carrier refusals or customs hold-ups.
  • Not preserving audit trails or mismatching electronic records with signed PDFs can complicate litigation and regulatory compliance.

Consequences of an Incorrect Agreement

Cargo Loss Liability: Limited by airway bill limits.
Customs Penalties: Fines for misdeclared goods
Late Claims Bar: Strict notice and time bars
Insurance Gaps: Underinsured shipments reduce recovery
Contract Void Risk: Unauthorized signatory may void agreement
Operational Delays: Missing permits halt movement

Essential Data Elements to Include

Shipper Info: Name, address, contact, tax ID
Consignee Info: Delivery address, contact person, phone
Carrier Details: Airline, agent, airwaybill number
Cargo Details: Description, weight, dimensions, UN number
Value & Insurance: Declared value and policy details
Signatures: Authorized signer name, title, date

Use Cases: How Agreements Reduce Risk

Real-world examples show how tailored Air Freight Shipping Agreements prevent disputes and streamline cross-border operations.

Consolidated Export

A manufacturer exported consolidated shipments under a standardized Air Freight Shipping Agreement to reconcile multiple purchase orders and harmonize customs declarations across carriers.

  • Reduced disputes over routing and costs.
  • Standard terms clarified liability and required insurance, enabling faster customs clearance and predictable invoicing. The documented claims procedure reduced time to resolution and lowered administrative overhead for both shipper and carrier.

Perishable Goods Trade

A food exporter and carrier used a customized agreement with temperature-controlled handling clauses to protect perishable consignments during international air transit.

  • Ensured agreed handling and temperature logs.
  • Defined inspection points, carrier obligations, and expedited claims submission timelines that preserved insurance coverage and minimized spoilage-related losses, improving customer satisfaction and lowering replacement costs.

eSignature Pricing and Feature Comparison

A concise vendor comparison for eSignature pricing and plan features relevant to executing and managing Air Freight Shipping Agreements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year No cap No cap No cap

Frequently Asked Questions

Answers to frequent questions about using, signing, and enforcing Air Freight Shipping Agreements in U.S. logistics workflows.


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