Freight forwarders have traditionally been compensated for their services to exporters with Freight Forwarder Compensation (FFC) paid by the ocean carrier.
Now some carriers have decided to cease paying FFC – another way that some carriers are shifting costs from themselves to their exporter customers.
APL has informed exporters and forwarders that after March 31, it will no longer pay freight forwarder compensation on export shipments from USA and Canada. CMA-CGM and USLines have issued similar notices. We understand that Maersk, MSC, Hamburg Sud and Hapag Lloyd are also discontinuing pay forwarder compensation, but limited to Oceana, Africa, and in some cases to South America. These are also inventoried on the AgTC Member page of the website.
This information will be useful to AgTC members in selecting carriers, and in your contract negotiations with carriers – some exporters are able to negotiate that the carrier pay the FFC – typically 1.25% of the total freight bill.