How to Handle Orders Placed After Quotation Expiry

Overview

A forwarder’s quotation usually contains a quotation validity period. This is not merely an administrative indication. In international transport, freight rates, surcharges, exchange rates, vessel space, air space, port charges and local charges may change frequently. The validity period is therefore an important commercial condition.

If the shipper places an order within the quotation validity period, the forwarder can normally proceed based on the quoted conditions. However, if the shipper places an order after the validity period has expired, the forwarder is not automatically required to maintain the old quotation amount or conditions.

This article explains how forwarders should handle orders placed after quotation expiry, focusing on re-quotation, order acceptance, cost changes, email records and prevention of disputes.

Why Quotation Validity Is Necessary

International transport costs change over time. Ocean freight, air freight, fuel surcharges, exchange rates, port charges, local charges, warehouse charges, trucking costs and customs-related charges may differ between the quotation date and the actual shipment date.

In ocean transport, freight rate revisions, GRI, PSS, BAF, CAF, emergency surcharges, route congestion and space shortages may change the cost within a short period. In air transport, peak season demand, fuel surcharges, chargeable weight, volume and flight availability may also make it impossible to arrange the shipment under the same conditions as at the time of quotation.

For this reason, a forwarder should set a validity period in the quotation and reconfirm or re-quote once that period has expired. The quotation validity period protects the forwarder, but it also clearly informs the shipper how long the quoted conditions remain valid.

An Order After Expiry Is Not Automatic Acceptance of the Old Quotation

A shipper may contact the forwarder after the quotation validity period has expired and say, “Please proceed based on the previous quotation.” In such a case, the forwarder has not automatically accepted the shipment under the old quotation conditions.

If the quotation clearly states a validity period, the quotation should, in principle, be reconfirmed after that period has passed. The forwarder should check the old quotation amount, schedule, space, surcharges, local charges, free time and possible additional charges before deciding whether the shipment can be accepted.

A common risk is that sales or operations staff assume that the previous quotation should still be acceptable and start arrangements without reconfirmation. If the actual costs have increased, the shipper may later argue that the order was placed based on the old quotation, making it difficult for the forwarder to charge the difference.

First Points to Confirm

When an order is received after the quotation has expired, the forwarder should not immediately proceed with the arrangement. It should first confirm the following points:

• Date of quotation and quotation validity period.
• Date on which the shipper placed the order.
• Planned shipment date, cargo delivery date and vessel or flight schedule.
• Scope of the old quotation.
• Whether ocean freight or air freight has changed.
• Whether fuel surcharges, exchange rates or local charges have changed.
• Availability of vessel space or air space.
• Whether free time, demurrage or detention conditions have changed.
• Whether any conditions for special cargo, dangerous goods or temperature-controlled cargo have changed.

If the forwarder accepts the order without checking these points, it may have to absorb the difference between the old quotation and the current actual cost. Where several weeks have passed since the quotation, or where the order is placed after a month-end, re-quotation should normally be assumed.

The Basic Rule Is to Re-quote

If the quotation validity period has expired, the basic rule is to issue a revised quotation.

Even if the forwarder can arrange the shipment under the same conditions as the old quotation, it is important to leave a written record stating that the old conditions have been reconfirmed and can be applied to this shipment.

If the cost has changed, the forwarder should identify the difference from the old quotation and obtain the shipper’s approval before proceeding. Where freight, surcharges, local charges, trucking costs or warehouse charges have changed, it is helpful to explain not only the new amount but also the reason for the change.

When issuing a revised quotation, the forwarder should clearly state:

“The previous quotation has expired. We will re-quote based on the current conditions.”

This makes clear that the previous quotation is not automatically still valid.

Leave a Record Even When the Old Quotation Can Still Be Used

In practice, there may be cases where the quotation has expired but the forwarder can still arrange the shipment at the same amount. Even in such cases, the forwarder should not simply accept the order without comment.

The forwarder should leave a written record such as:

“The previous quotation has expired. However, for this shipment only, we can proceed under the same conditions.”

This makes clear that the old quotation is accepted only for the specific shipment.

Without such a record, the shipper may later refer to the same expired quotation again and say, “You accepted the same amount last time.” Where the forwarder exceptionally uses an expired quotation, the scope should be clearly limited to “this shipment only” or “this order only.”

When the Cost Has Increased

If costs have increased after the quotation expiry date, the forwarder should not accept the order under the old quotation without reconfirmation.

The forwarder should explain to the shipper that the previous quotation has expired and that current arrangement conditions have changed. A revised quotation should then be submitted.

It is important not merely to say, “The price has increased.” The forwarder should separate the changed items where possible, such as ocean freight, fuel surcharge, exchange rate, local charges, trucking costs, warehouse charges or special handling costs.

Even if the shipper strongly requests that the old quotation be applied, the forwarder is not automatically obliged to absorb the difference. If the old quotation clearly had a validity period, the proper approach is to obtain the shipper’s approval under current conditions before starting the arrangement.

When Space or Schedule Has Changed

When an order is placed after quotation expiry, not only the cost but also the space or schedule may have changed. A vessel or flight that was available at the quotation stage may be full at the order stage.

The schedule stated in the quotation is based on information available at the time of quotation. If the shipper delays the order, the same schedule may no longer be available.

This is especially important during peak seasons, before long holidays, during port congestion, and for dangerous goods, reefer cargo or special containers, where space may be difficult to secure.

Therefore, when an order is placed after quotation expiry, the forwarder should reconfirm both cost and schedule. A useful response is:

“The schedule stated in the previous quotation was based on information available at that time. We will reconfirm the current space and schedule availability.”

When the Shipper Urges Immediate Arrangement

Sometimes the shipper may say, “Please secure the space first,” or “We will confirm the price later.” However, if the quotation has expired and the forwarder proceeds without confirming current costs and conditions, a dispute may arise later over who bears the additional cost.

Even in urgent cases, the forwarder should obtain at least a simple written confirmation before proceeding. For example:

“The previous quotation has expired. Costs and conditions may change based on the current arrangement. If any difference or additional charge arises, it will be for your account.”

This is particularly important where cancellation charges or actual costs may arise after arrangement starts, such as vessel space booking, air space booking, truck arrangement, warehouse delivery or dangerous goods application.

The forwarder should not start such arrangements without the shipper’s confirmation.

Wording to Include in the Quotation

To avoid disputes after quotation expiry, the quotation itself must be clear. It should not merely list prices. It should state the validity period, applicable assumptions, excluded charges and variable cost elements.

The following items should normally be included:

• Quotation validity period.
• Expected shipment period.
• Target cargo, quantity, weight and volume.
• Target route and transport mode.
• Charges included in the quotation.
• Charges not included in the quotation.
• Possibility of changes in fuel surcharges, exchange rates and local charges.
• Statement that space and schedule are not guaranteed.
• Whether cargo insurance is included.
• Application of standard trading conditions.

In particular, the following wording is useful:

“After expiry of the quotation validity period, a revised quotation shall be required.”

“Costs may change due to changes in shipping line, airline, port, local or other third-party charges.”

Relationship with Standard Trading Conditions

A dispute over an order placed after quotation expiry is not only a pricing issue. It may also relate to order conditions, liability scope, additional charges, cancellation charges, cargo insurance, and responsibility for delay.

For this reason, the quotation should be connected to the forwarder’s standard trading conditions.

Where there is no master service agreement or basic transaction agreement with the shipper, the forwarder should use the quotation, order email, FCR and standard trading conditions together to clarify the scope of responsibility and cost conditions.

If the standard trading conditions are properly presented, it becomes easier to explain additional charges, re-quotation, limitation of liability, force majeure and third-party cost pass-through when an order is placed after quotation expiry.

Internal Order Acceptance Rules

Handling expired quotations should not be left entirely to individual staff members. Sales staff may prioritize the customer relationship, while operations staff may focus on actual cost changes. This can create internal inconsistency.

Forwarding companies should establish internal rules requiring re-quotation or management approval when an order is received after quotation expiry.

This is especially important for high-value shipments, special cargo, dangerous goods, reefer cargo, air cargo and peak season shipments. In such cases, the company should have a rule that old quotations must not be accepted without reconfirmation.

It is also important to manage quotation numbers and quotation versions. Where several quotations have been issued for the same shipment, the shipper may place an order based on an older version. The forwarder should make clear which quotation is the latest valid version.

Practical Notes

When a shipper places an order after quotation expiry, a forwarder may sometimes respond flexibly in order to maintain the relationship. However, flexibility is not the same as accepting unclear conditions.

If the forwarder can apply the old quotation, it should state this clearly in writing. If costs or conditions have changed, the forwarder should issue a revised quotation and obtain the shipper’s approval before proceeding.

Even in urgent cases, it is important to obtain email confirmation that additional costs or differences may arise.

When handling an order after quotation expiry, the forwarder should check not only the price, but also space, schedule, free time, local charges, cargo insurance and cancellation charges. If the forwarder accepts the order only by looking at the old quotation amount, unexpected losses may arise later.

Case Example: Accepting an Expired Quotation Without Reconfirmation

In one import shipment, a forwarder submitted a quotation to the shipper covering ocean freight, CFS Charge and domestic delivery. The quotation stated that it was valid for 30 days.

Forty days later, the shipper emailed the forwarder and said, “Please proceed based on the previous quotation.” The staff member, wishing to maintain the customer relationship, replied that the shipment would be accepted under the old quotation conditions without reconfirming the cost.

However, during the period after the quotation was issued, a GRI had been applied by the shipping line and the ocean freight had increased.

When the forwarder later billed the difference to the shipper, the shipper refused to pay. The shipper argued that the order had been placed based on the quoted amount and that the forwarder had already accepted the order by email.

The forwarder had no email record stating that the old quotation had expired, and no revised quotation had been issued. As a result, the forwarder ultimately had to absorb the difference.

In this case, the dispute could likely have been avoided if the forwarder had replied at the time of order:

“The previous quotation has expired. We will reconfirm based on the current conditions.”

The problem was not only the freight increase itself. The core problem was that the forwarder treated an expired quotation as accepted without reconfirmation.

Key Takeaway

The quotation validity period is an important condition in forwarding practice. If a shipper places an order after the validity period has expired, the forwarder should not automatically accept the old quotation.

The forwarder should reconfirm current costs, space, schedule and additional conditions before accepting the order.

Even if the forwarder can apply the same conditions as the old quotation, it should leave a written record that the same conditions apply only to the current shipment. If costs have changed, the forwarder should issue a revised quotation and obtain the shipper’s approval before proceeding.

If expired quotations are handled ambiguously, the forwarder may have to absorb cost differences or additional charges. Aligning the quotation, order email, standard trading conditions and FCR is essential for clarifying price, conditions and liability scope.