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Company’s additional charges for accepting such increased liability. Details of the Company’s additional charges will be provided on request. General comment on Clause 26 This long clause is very important because it sets out the limits of the BIFA Member’s liability. The scales of liability are shown as the upper limits, and if the value of goods lost or damaged, or the expenses incurred are lower than these upper limits, then the BIFA Member’s liability is reduced accordingly. It is important to note that the limits of liability under Clause 26 can be overridden by compulsory legislation implementing an international convention for the carriage of goods, hence the reference to the Clause 2(B). Further details of such overriding limits are given below. It is also important to note that these limits of liability cannot be applied to liability for failing to keep a promise to insure goods in accordance with received and accepted instructions, hence the reference to Clause 11(B). Special Drawing Rights (SDR) referred to in this Clause is an artificial basket of currencies in which the US dollar predominates. Although it was not the original purpose, liability on an international basis is commonly established by using SDR. The conversion to sterling varies each working day. In 2022/23, the SDR hovered between 1.00 SDR and 1.05 SDR = £1. The weaker the US dollar against the £ sterling, the lower the £ sterling value of SDRs. The Times , the Financial Times and other
specialist papers publish the sterling value of the SDR on each working day. See also the Limits of Liability panel on page 7 of every issue of BIFAlink. Clause 26(A) states that the value of the SDR is to be that when the BIFA Member received a claim in writing. Unless the BIFA STC have been incorporated into the contract between the BIFA Member and his customer, the limits under Clause 26 cannot be applied. In circumstances where there is no overriding international convention, the BIFA Member will then be exposed to full liability unless there is a common law defence. Comment on Clause 26(A) (i) This sets out liability for the loss or damage to goods as 2 SDR per gross kilo, or the value (if less) of the goods lost or damaged. In rough outline, comparable liabilities for the carriage or handling of goods are as set out below, and are all subject to the value of the goods lost or damaged being less. See also the comments about international conventions under Clause 2 for further details in the table below. Comment on Clause 26(A) (ii) This shows the liability for all other claims, apart from those that have been lost or damaged or those regarding the time of delivery (delay etc) or covered by Clause 26 (A) (iii). The basis of liability differs from that under Clause 26(A) (i) in that it relates to the weight or value of the whole consignment that is the subject of the relevant transaction, and it has a cap of 75,000 SDR. It may be that there are no goods involved – the
claim may involve an administrative task undertaken by the Company or bad advice – in which case the limit of liability is the lower of the amount of the claim or 75,000 SDR. Comment on Clause 26(A) (iii) This clause applies when an error consolidate all such claims to an annual cap of 75,000 SDR (or of the claim amounts if less) instead of each of such claims having individual liability in any one trading year. Comment on Clause 26(B) The text of this clause refers to failure to deliver or to arrange delivery in a reasonable time, and also failure to adhere to a special arrangement made in that respect under Clause 25, and so this clause covers more than what is strictly regarded as delay. or omission occurs or is perpetuated and aims to generous. This clause is overridden by some international conventions and if it is to the BIFA Member’s advantage they can be applied. CMR Convention (International Road Carriage) Article 19 of the CMR Convention states: “Delay in delivery shall be said to occur when the goods have not been delivered within an agreed time limit, or when failing an agreed time limit the actual duration of the carriage, having regard to the circumstances of the case and, in particular, in the case of partial loads, the time required The limit of twice the BIFA Member’s charges can be
“ It is important to note that the limits of liability under Clause 26 can be overridden by compulsory legislation imple - menting an international convention for the carriage of goods, hence the reference to the Clause 2(B)
Continued on page 26
CMR Convention Hague-Visby Rules FIATA Bill of lading
8.33 SDR per gross kilo
2 SDR per gross kilo or 666.67 SDR per package 2 SDR per gross kilo or 666.67 SDR per package
Montreal Convention 1999 Amended Warsaw Convention 1955 Non-International Carriage Rules (Air) Unamended Warsaw Convention 1929
22 SDR per gross kilo 17 SDR per gross kilo 17 SDR per gross kilo
250 gold francs per gross kilo which in the UK is converted to £14.08 per gross kilo by the Carriage by Air (Sterling Equivalent) Order 1999 SI 1999/2881
CIM Convention
17 SDR per kilo gross weight £1,300 per 1000 kilos gross weight £100 per tonne of gross weight
RHA Conditions of Carriage 2009 United Kingdom Warehousekeepers’ Association Conditions 2014
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