Logistics Agreements

It can be considered a natural impulse to attribute damage or loss to the party that is in physical possession of the goods. However, in trade, it is common practice to limit the amount or extent of liability of logistics service providers. For some types of contracts, liability is limited by a branch standard, or even limited by law (for example. B CMR). This applies in particular to transport contracts whose liability is generally limited to a certain amount per kilogram of gross weight, depending on the mode of transport. Note, however, that this restriction only applies to the carrier`s main obligations. Other logistician obligations, which are not subject to a transport contract or industry liability standard, may be subject to contractual agreement. When a 3PL assumes a higher responsibility for the goods, this will have an impact on rates, since this increased liability must be reseeded with an external insurance company. Problems related to deposit and retention rights rarely arise directly with respect to goods that are effectively under the tutelage of the logistics service provider. Instead, deposit and retention fees are generally exercised to impose the billing of unpaid invoices for previous or previous shipments.

More importantly, conservation rights are sometimes not invoked between a shipper and their service provider, but somewhere in the subcontractor chain. It is sometimes difficult to prevent this, but if the goods represent a certain value or if there is a particular interest in delivery on time and the corresponding contractual fines in the purchase or delivery contract, the shipper should carefully assess the risks associated with pawn and retention rights somewhere in the supply chain. A financially stable logistics service provider, which orchestrates the various stages of the supply chain and centrally manages subcontractors, is an important condition for avoiding the exercise of deposit and retention rights. First of all, it is always advisable to accept the duration of the contract and/or notice. Avoid a legal no-man`s land by imposing clear and clear termination clauses, a termination date and notice. In the absence of an agreement, the court should give reasonable notice. The interpretation of the «reasonable» tribunal does not always correspond to the views of one of the parties. When choosing the duration of the contract, also make sure that the contract provides for minimum order quantities (guaranteed quantities) and exclusivity. If this is the case, the sender must be sure that it can fulfill both clauses for the duration of the contract. However, even if there are no quantitative guarantees in the contract, the carrier is still entitled, in many cases, to a specified volume generated under the terms of the contract during the previous period.

In other words, even if no minimum amount of orders have been agreed, the logistics service provider can often require at least a «sustainable» amount of orders. When processing cargo logistics, you`ll probably need several contracts to protect your business. (b) to organize and perform co-transport services in connection with the shipment of goods and goods to and from each secondary location, but only to the extent expressly requested by the shipper for certain shipments. It is understood and it is agreed that secondary sites will be primarily served by another external logistics provider or forwarder directly mandated by the shipper.