GlossaryEN1 min readUpdated: Jun 25, 2026
Limitation of Liability Clauses in Freight Forwarding
A limitation of liability clause in a freight forwarding contract defines the maximum amount the forwarder will pay in the event of loss, damage, or delay to a shipment.
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Source: https://fiata.com/en/our-activities/uniform-rules-for-freight-forwarding.html
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Definition & Explanation
A limitation of liability clause in a freight forwarding contract defines the maximum amount the forwarder will pay in the event of loss, damage, or delay to a shipment. These clauses are standard across the industry: without predictable caps, neither competitive pricing nor affordable professional indemnity cover would be workable. The specific limits are drawn from the forwarder's general terms and conditions – such as the BIFA Standard Trading Conditions in the UK or comparable national frameworks – as well as from applicable transport conventions. Shippers seeking broader protection may submit a written value declaration, raising the ceiling at an additional charge, or take out their own cargo insurance. Clauses that lack transparency or are not properly incorporated into the contract may be unenforceable under applicable law.
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