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