The legal implications of freight forwarding in Malta

Abstract

Owing to the complexity and vastness of this subject, it was impossible to tackle all of the relevant legal points inherent to the freight forwarding industry in this thesis. Therefore, the area which I have decided to focus mostly on is the freight forwarder and the major legal aspects surrounding this commercial entity, especially in his relation to his customer. Chapter 1 aims at clarifying or rather giving an idea of who the freight forwarder really is by providing an overview of what his role in modern trade is, as well as what the services offered to a customer consist of. Chapter 2 discusses the highly controversial issue of whether the freight forwarder, whilst engaging into his customer's instructions or requirements, does so under the status of an agent or of a principal. Several issues are considered in this treatise, such as the importance of documentation and legislative intervention in certain countries. Chapter 3 deals with the issue of liability. The liability of the freight forwarder is analyzed both in relation to his status as an agent as well as in relation to his status as a principal. Furthermore, the significance of the standard trading conditions is outlined and their importance in relation to the limitation of liability is thoroughly analyzed. Chapter 4 discusses the need and importance of having a regulatory or governing body, which is recognized at both a national and international level, representing the freight forwarders as well as the freight forwarding interests in general. The impact and effects of having such a body are examined and this is mainly done by observing a well-established and recognized body within the United Kingdom. Chapter 5 sums up the major points tackled throughout the thesis and it makes any suggestions and changes that could possibly be made in the local scenario. Generally, the aim of this thesis is to provide the reader with a certain degree of knowledge (both practical and legal) regarding the freight forwarding companies and the major legal issues and problems deriving from their very engagement in national and international trade, and this is done also by taking the local scenario into account.