Policy & Compliance
Bringing claims within required timeframes BIFA has noticed an interesting case in the UK courts looking at the issue of time bars, including their application under the Hague Visby Convention. Robert Windsor takes a closer look at the issue and provides general guidance for forwarders
W hen considering a claim for loss or damage to cargo there are two separate timescales to be aware of: • The first is to bring to the attention of, usually, a carrier that cargoes have been lost, damaged or misdelivered, sometimes referred to as ‘taking out reserves’. • The second is being aware when the ‘time bar’ becomes effective. What is meant by the term ‘time bar’? It is a contractual provision or legal rule that sets a strict deadline for a party to take a specific action, such as submitting a claim or notice, or for filing a legal case. If the deadline is missed, the party loses its right to pursue that claim or action, and it becomes time-barred. Most international conventions and trading conditions include such a clause aiming to focus minds on settling claims and disputes within a required time scale. Elements to remember BIFA has looked at this matter in more depth and felt it important to clarify matters for Members. In BIFA’s opinion there are three different elements for Members to remember: • The time limit in which a claim for loss or damage must be made to the carrier or its representative – these are usually a relatively short timeframe; • The time bar for commencing legal action; • The limits of liability, which vary between each different international convention and set of trading conditions. On 13 November 2024, the UK Supreme Court handed down judgment in FIMBank Plc v KCH Shipping Co., Ltd [2024] UKSC 38 , holding that the one-year time bar in Article III, rule 6, of the Hague and Hague- Visby Rules applies to claims in relation to misdelivery after discharge, as well as to other breaches of duty by the carrier occurring after discharge but before delivery. From many viewpoints the key part of the decision was the confirmation of the one-year time bar, although the ruling clarified in what circumstances it was applicable. The case highlights the importance of ensuring that claims and legal action are initiated within the timeframes permitted by the relevant convention or trading conditions. Importantly, from the Member’s viewpoint, the key takeaway is the need to submit initial notification of claims promptly to carriers when there has been loss
or damage. In a way this is a double-edged sword as, by implication, it places responsibility on the client to check received cargo and notify its freight agent of any discrepancies within the specified timeframes. Please refer to the list below (right) for the main conventions and the timescales for notifying a claim to the carrier. Application of time bars Regarding the application of time bars, these vary considerably between international conventions and trading conditions. Depending on circumstances there can even be variations within the same convention. In general terms, a one-year time bar applies in most surface international conventions. The CMR Convention is the most complex international convention applying different time bars for partial and total loss of cargoes and a three-year
“ A time bar is a contractual provision or legal rule that sets a strict deadline for a party to take a speci fi c action, such as submitting a claim or notice, or for fi ling a legal case
12 | October 2025
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