Freight Liability
Definition

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Freight Liability Definition

Carriers are essentially responsible for clients' cargo and are liable for any damage or loss incurred during the transition. Well, this is true, apart from when freight damage is due to the acts of God, the shipper, or the nature of the freight being shipped. All the same, a carrier not liable for any damage until a prima facie has been established. In this case, a shipper needs to provide the following set of documents:

  • A proof of the freight delivery to the carrier in great condition
  • A proof of the final delivery to the end-user showing the shipment in its current damaged condition
  • The cumulative amount of the damage caused

  • Common Risks in Transport and Logistics

  • Carrier Delays or Underperformance
  • Freight Damage and Loss
  • Bankrupt Freight Companies
  • Lack of Inventory
  • Mergers and Acquisitions
  • Theft from Warehouses or At The Transportation Hub
  • Piracy and Hijacking

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    How to Manage Shipping Risks

    Do All Necessary Due Diligence Before Engaging a Carrier

    Thoroughly scrutinize your prospective carrier and find out exactly how long they have been in business. Is their equipment and distribution facility well maintained and up to standards? Are their personnel trained and experienced? Analyze their relationship with other freight carriers and forwarders and ensure that they maintain good business partnerships.

    Make Your Communications Clear and Timely

    Efficient communication is an integral part of risk management. Be sure to communicate with your carrier and provide specific details on particular terminals to deliver freight. Also, maintain proper communication with the emergency team, especially when hauling hazardous items, and ensure your insurance company has the correct freight details.

    Shipping Risks Continued

    Have All the Required Documents at Hand

    When moving freight locally or internationally, it is essential that you understand which documents are required and how to access them. Ensure that these documents contain relevant and accurate information to prevent inaccuracies that might lead to significant delays. Some of these documents include:

  • Bills of Lading
  • Certificates of Origin
  • Bills of Sales
  • Safety and Health Certificates
  • Customs Documents
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