Reasons for Proposal and Major Provisions

According to the current law, “freight forwarding business” refers to the business of acting in the capacity of a commercial broker or agent for contracting for transportation of cargo for consideration in response to a request from a third person or business that engages in the transportation of cargo in its own name and on its own account by means of trucking owned by a person who engages in a trucking transport service or franchise trucking business.

In addition, the freight forwarder mainly arranges suitable transport service providers to the shipper according to the characteristics, quantity, etc. of the cargo requested by the shipper and operates the business by receiving freight forwarding commission from the transport service provider. However, brokerage and agency transactions between transport service providers or trucking business franchisors are not fair, such as the freight forwarder using its superior status to charge an excessively high commission rate, etc., and this needs to be improved.

Accordingly, when a freight forwarder brokers or acts as an agent, it shall be possible to contract in accordance with the Standard Contract and to prevent unfair contract signing by sanctioning such entity if it is found to have violated (Article 26 (3) and (4), Article 68 subparagraph 4 and Article 70 (2) 12).