I paid a freight forwarder to arrange shipment of goods overseas, and the consignment vanished somewhere along the route. The forwarder’s terms say its liability is capped at a very low amount. Can they really limit what I can claim?
Freight forwarders usually contract on standard trading terms that limit their liability, and such limits are often enforceable between businesses if they are clearly incorporated into the contract. The role of the forwarder matters. If it acted as an agent arranging carriage, it may be responsible only for negligence in the selection and instruction of carriers, whereas if it acted as a principal carrier, it may face liability under the relevant convention or law for the carriage. Check the terms for the limit, time limits for claims and any requirement for written notice. If you are a consumer, unfair terms and the Fair Trading Act 1986 may help. Notify the forwarder and your cargo insurer promptly, and if you have insurance, your insurer may pay and pursue the forwarder.
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