Ensuring Fair Compensation: Analyzing and Adjusting Freight Forwarder Liability Limits

Miloš Poliak () and Ekaterina Salamakhina
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Miloš Poliak: Department of Road and Urban Transport, University of Žilina, 01026 Žilina, Slovakia
Ekaterina Salamakhina: Department of Road and Urban Transport, University of Žilina, 01026 Žilina, Slovakia

Logistics, 2024, vol. 8, issue 2, 1-16

Abstract: Background : Due to the absence of unified global regulations, defining the service and legal role of freight forwarders is challenging. This, as well as the lack of a standardized limit to the freight forwarder’s liability for loss or damage to the cargo, introduces misunderstandings into his relationship with the client. The purpose of this study is to analyze the most widely used limit for freight forwarder’s liability, set in Special Drawing Rights (SDR) units, and to adjust it, which will allow for maintaining the purchasing power of the compensation amount over different periods of time. Methods : In this study, two methods of adjusting the liability limit were proposed. In accordance with the first one, the limit was adjusted considering the impact of dollar inflation on the SDR unit. The second method involves changes in the limit of liability, taking into account changes in world prices for goods. Results : The result of this study showed that the second method is more functional, helping to preserve the purchasing power of the liability limit most effectively over time. Conclusions : This study revealed the fluctuating purchasing power of the forwarder’s liability limit over time and suggests utilizing a methodology tied to changes in global goods’ prices for adjustment.

Keywords: freight forwarding; transportation law; freight forwarder’s liability (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2024
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