Legal Status on the Ocean Freight Forwarder as a Contracting Carrier

A freight forwarder plays an important role in the modern international carriage of goods. However, the rules regulating a freight forwarder is not well organized in the Korean legal system. A freight forwarder has three different kinds of function such as an intermediary, an agent or a carrier. First he plays as the pure intermediary between the carrier and the shipper, which falls within the original definition of the freight forwarder. Second, he acts as the agent of the shipper or of the carrier. Third, he acts as the contracting carrier by entering contract of carriage of goods with the shipper or by issuing bill of lading. A contracting carrier means any person by whom or in whose name a contract of carriage of goods by sea has been concluded with a shipper. A freight forwarder as a contracting carrier is defined to be the person who, as a party to the carriage contract, undertake the responsibility for the entire period of transportation upon issuing the bill of lading as the carrier performing all the services such as arranging for consolidation, warehousing,loading, carrying, taking insurance and delivery of the goods, from the moment of receipt of the goods from a shipper until delivery. The Korean Supreme Court held that even if a freight forwarder is provided with a shipping-related work, if it is not clear whether it is for carriage or forwarding only, it shall be verified by reaching the intention of the party whether the freight forwarder has obtained the status of carrier or not, but if the intention of the party is not clear, it shall be verified through a comprehensive consideration of all circumstances including but not limited to the names of the issuer of the house bill of lading and the payment method of the fee. This article focus on the legal status on the freight forwarder not as an agent of the shipper or of the carrier and as the intermediary, but as the contracting carrier.