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Liability of Freight Forwarders for Compensation

Oct 09, 2023

Principle of liability for compensation

The general provisions of the International Association of Freight Forwarders stipulate two principles of compensation: one is the principle of liability, and the other is the limitation of liability.

When the consignee discovers the loss or damage of the goods upon receiving them, and can prove that the loss or damage was caused by the fault of the freight forwarder, they shall file a claim with the freight forwarder. Generally, the notice of claim shall not exceed several days after the arrival of the goods. Otherwise, it shall be deemed that the freight forwarder has fulfilled the delivery obligation.

Limitation of Liability

From the perspective of existing international conventions, some adopt a single standard compensation method, while others adopt a double standard compensation method. The compensation method for international freight forwarders should also be the same, but the actual practice varies and there are significant differences.