GlossaryEN1 min readUpdated: Jun 12, 2026

Allocation of liability

Allocation of liability determines who is responsible for which damages in a transport process.

Last updated: 12 June 2026Published: 27 January 2026

Source: https://de.wikipedia.org/wiki/Haftung

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Logistics Concept

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Allocation of liability determines who is responsible for which damages in a transport process. When cargo is damaged in transit, the first question is: Is the shipper liable for poor packaging, the forwarder for negligent handling, or the carrier for inadequate securing? Shipping and logistics contracts clarify this responsibility either contractually or according to statutory rules (e.g., the CMR Convention for road transport). Clear allocation of liability prevents legal disputes and enables the parties involved to cover their risks through insurance. It is therefore a key contract clause and often accounts for the possibility of contributory negligence. Depending on the transport mode and contract type, liability may also be capped (e.g., liability limits under IATA, FIATA, or maritime law).

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