Get to know the vital terms of Logistics and Supply Chain Management.
Carrier liability is the responsibility of the carrier to ensure safe and timely delivery. The principle clarifies under what conditions a loss, damage, or delay in shipment falls on the shoulders of the carrier.
Liability for Goods: The carrier is liable for the goods from the time at which he takes over till the time of delivery, subject to certain exemption thereon.
Exceptions: The carrier is exempt in circumstances like natural calamities, action of public authorities or damages due to the nature of goods, i.e., perishable or fragile.
Remedies: If a shipper suffers loss or damage under compensation due to the carrier’s negligence, he can seek compensation that generally is anticipated under national or international standards.
Carrier liability makes shippers understand what, in case of damaged goods during transit, the carrier will be liable to pay for.
Insurance: Most shippers also wish to pay extra for coverage insurance that fills the gaps not covered by the liability of the carrier.
Transparency: Liability by carriers makes both the carrier and the shipper clearly understand their expectations from each other. This brings transparency and confidence into transactions.
In a nutshell, carrier liability holds the carriers responsible for the goods they carry by also holding them liable and raising defenses against those shippers.
