Policy & Compliance
situations where customers have cancelled previously booked consignments and carriers and overseas agents have charged the Member for cancelling the booking, with the customer declining to pay. The STC do cover this situation, providing the levers to secure recovery of outlayed costs, but a disclaimer on all communications covering liability for loss, delays and cancelled bookings in the current situation is recommended. The specific issue of ‘End of Voyage’ clause The specific issues relating to these clauses are dealt with on page 24 in the article entitled What is an ‘End of Voyage’ Clause? Key clauses within BIFA STC We have already touched on the clauses covering the Member acting as either agent or principal. The first and perhaps the most important clause is Clause 20(A) – the ‘Indemnity Clause’ under which the customer indemnifies the Member for “all charges, costs and expenses... arising out of the company (Member) acting in accordance with or in connection with the customer’s instructions”. Regarding delays, Clause 25 states: “Unless it is expressly agreed in writing that the provisions of this clause 25 shall not apply, the company has no liability for a failure to adhere to agreed departure or arrival dates of goods, regardless of the cause.” It should be noted that Clause 26 (B) places a limit on the liability of “twice the amount of the company’s charges in respect of the relevant carriage”. Regarding consequential loss, Clause 26 (C) states that the company does not have a liability for direct or indirect losses “or the consequences of delay or deviation, or for any other indirect loss or for consequential loss”. One incorrect assumption that many shippers make is that freight forwarders automatically insure goods – they DO NOT. Clause 11 clearly states: “No insurance of the goods will be arranged by the company unless clearly stated instructions are given in writing by the customer and accepted by the company.” Clause 26 (A) details that for loss or damage the Members liability is limited to 2 SDR per kilo. All documents relating to the 2025 edition of the BIFA STC can be viewed at https://bifa.org/information- guidance/trading-conditions/bifa-standard-trading-c onditions-2025/ Please note that this is general industry guidance based upon issues Members have brought to BIFA’s attention. It does not constitute legal advice. Where a Member has a specific legal issue, they must seek the advice of a suitably qualified solicitor. NB: Information is correct as of publication date – but the reader should check that events have not rendered part or all of the guidance out of date. Please note that this article is general industry information and not legal advice, which can only be provided by a suitably qualified legal expert.
cargo movements which could lead to shortages and also consequential loss, are often not recoverable. Consider implications of the ‘Merchant Clause’. • Members should emphasise to customers that goods are not automatically insured by them (Clause 11) and that they trade under limited liability (Clause 26). • Prepare for increased security requirements under the ISPS Code, including potential access restrictions, operational disruption and compliance obligations. • Liaise with shipping lines to establish the impact on their services, particularly surcharges, delays, etc. • Discuss with insurers the impact of the situation on both marine insurance and freight forwarder liability policies. • Maintain clear records of all conversations and confirm by e-mail as a record of mitigation activities. • Recovery of outlay of costs when a booking is cancelled by the customer. We have heard of
“ In this situation disruption and delays are inevitable
April 2026 | 15
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