Can a forwarder use forwarder compensation from an ocean carrier to offset service fees?

The concept of forwarder compensation is tied closely to the ethical and legal standards governing freight forwarding and the shipping industry at large. When forwarders receive compensation from ocean carriers, these funds are typically intended as incentives for the forwarder to use the carrier's services. However, using this compensation to offset service fees can raise questions about transparency and fairness in pricing.

In practice, forwarders must charge their customers for their services honestly and transparently. Using carrier compensation to reduce service fees can potentially obscure the true cost of forwarding services to the customer. This can lead to situations where customers are misled about the actual fees they are being charged. Consequently, regulations and best practices in the industry generally prohibit forwarders from offsetting their service fees with compensation received from carriers, thereby ensuring that pricing remains clear and direct.

Thus, the assertion that forwarders cannot use compensation from ocean carriers to offset their service fees is consistent with the principles of fair trade and maintaining trust in the logistics and shipping industry. This helps ensure all parties involved understand the costs associated with the transportation of goods without hidden or unexpected adjustments to pricing.