The Limitations of Liability section within the BIFA Standard Trading Conditions (STC) 2021 outlines the maximum liability a freight forwarder holds for financial claims arising from their services. It is crucial for shippers to be aware that, without All Risk Marine insurance, they may not recover the full value of their shipment in the event of loss or damage.
Summary: Loss or Damage to Goods (BIFA Standard Trading Conditions 2021)
The liability of freight forwarders for loss or damage to goods is limited to the lesser of:
- The value of the goods lost or damaged, or
- Special Drawing Rights (SDR) per kilogram of the gross weight of the affected goods.
SDR Rates by Mode of Transport
- Road Transport: 8.33 SDR/kg (per the CMR Convention).
- Air Freight: 26 SDR/kg (per the Montreal Convention).
- Sea Freight: 2 SDR/kg or 666.67 SDR per package, whichever is higher (per the Hague-Visby Rules).
- Multimodal Transport: Liability depends on the mode where the loss occurred, or defaults to the lowest rate if undetermined.
Key Points
- SDR is an international monetary unit set by the IMF, with daily fluctuating rates.
- Forwarders’ liability is capped regardless of the goods’ actual value.
- Customers are advised to arrange additional insurance for high-value goods or when the SDR limits are insufficient.
This structure ensures fair liability for freight forwarders while providing customers with clarity on compensation limits.
See What Davies Turner Can Offer
To safeguard your shipments beyond the limitations of liability under the BIFA Standard Trading Conditions, consider All Risk Marine Insurance. Our comprehensive insurance solutions ensure that your goods are fully covered in the event of loss or damage, giving you peace of mind and financial protection.
Contact us today to learn more about our insurance options and how we can provide tailored coverage for your logistics needs:
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