An Ups Continuous General Agency Agreement (CGAA) is a contract between a shipping company and a freight forwarder, which gives the forwarder the authority to act on behalf of the company as its agent for a continuous period of time.
The agreement covers a range of services provided by the freight forwarder, such as arranging and coordinating shipments, managing documentation, and handling customs clearance. By signing a CGAA, the shipping company can benefit from a more streamlined and efficient shipping process, while the forwarder can secure a steady flow of business.
One of the key benefits of a CGAA is that it allows the freight forwarder to offer the shipping company more competitive rates and discounts. This is because the forwarder can negotiate better pricing with carriers based on the volume of shipments they handle over a longer period of time.
In addition, a CGAA can provide a level of predictability and stability for both parties. The shipping company can rely on the forwarder to handle their shipments and ensure they arrive at their destination on time and in good condition, while the forwarder can count on a steady stream of business from the company.
However, before signing a CGAA, it`s important for both parties to carefully review and negotiate the terms of the agreement. This includes ensuring that the contract includes clear provisions for liability, indemnification, and insurance, as well as outlining any limits or exclusions on the services provided.
Overall, a CGAA can be a beneficial arrangement for both shipping companies and freight forwarders, providing a more efficient and cost-effective shipping process. If you are considering a CGAA, it`s important to work with an experienced and reputable freight forwarder who can help you navigate the process and negotiate favorable terms.