Another problematic scenario involves “hands-off” shipping arrangements, where clients are only responsible for placing the order and making payment, leaving all other logistical details, such as trucking and customs clearance, to be handled separately. In these cases, the freight forwarder may not even know the origin of the goods, the customs declaration details, or other essential information.

For instance, a shipment with a freight forwarder’s internal cost of $2,500 was accepted by a client for $3,000 without any negotiation. This particular container was later intercepted at Yantian Port and found to contain counterfeit cigarettes and other counterfeit products. This type of arrangement prevents the freight forwarder from having any direct contact with the goods or the client, creating a high-risk situation.

Consequently, freight forwarding companies should remain extremely vigilant regarding “hands-off” shipping arrangements. The inability to verify critical information about the cargo and the client makes these arrangements highly susceptible to exploitation by those engaged in illicit activities. As a result, such arrangements should be avoided whenever possible to protect the company from legal and financial risks.