Exclusive to BIFA Members, the BIFA STC define the contractual relationship between the BIFA member and their customer.
Once properly incorporated into the contract they create an equitable trading relationship between the two parties providing protection for freight forwarders and placing certain expectations (or responsibilities) on the customer.
A key condition to the use of the BIFA STC is that suitable freight liability insurance is maintained by the member to cover their obligations defined in the STC. A list of insurance brokers offering freight liability insurance is available on the BIFA website.
First issued in 1989, the BIFA STC are favourably regarded by insurers because they clearly define liabilities, which they have to underwrite. Where they have been correctly incorporated into the contract with the customer, in instances where a matter has been taken to court, the BIFA STC have been upheld in all High Court judgements.
The BIFA STC have undergone a number of revisions to ensure that they remain relevant and reflect changes in both domestic and international law and forwarding practices. The most recent revisions reflect the UK’s departure from the EU in 2021.
Comprising 28 clauses, the BIFA STC cover:
- Responsibilities of the company (BIFA member), including the operation of a general lien
- Responsibilities of the customer
- Liability and Limitation
- Jurisdiction and Law
The BIFA STC, by providing contractual clarity, are widely accepted in the UK courts and by insurers, making them, perhaps, BIFA’s single most important contribution to the logistics community. In addition, there is a global reach as the terms, with variations to comply with local law, are widely used in “common law” (mainly Commonwealth) countries.
A full explanation of each clause is available for BIFA members in the Know your 2021 Trading Conditions document.
