The principle of liability for compensation has two aspects, as set by the International Freight Transport Association. One is the principle of liability for compensation, and the other is the limitation of compensation.

I. Principle of Liability for Compensation

When receiving the product, if the recipient finds that the product is lost or damaged and can prove that the loss or damage was caused by the fault of the agent, a claim can be made. Typically, the notification of the claim must be submitted within a few days after the goods arrive. Otherwise, the freight delivery obligation is considered fulfilled. The basic compensation principles for freight agencies are:

What Are the Principles of Compensation for International Freight Forwarders?

1) The market price of the product at the time of delivery or the invoice amount differs from the products value. However, if the difference cannot be determined, the invoice amount will be compensated.

2) No compensation will be provided for goods without actual value or with special value (e.g., antiques, paintings). (Unless a special declaration is made and corresponding fees are paid)

3) Compensation for freight, customs, and other fees. However, no further compensation will be provided for other losses.

4) Proportional compensation for product damage.

5) If the product is not delivered within the agreed delivery period, constituting delayed delivery, compensation may be provided for direct consequences and appropriate expenses caused by the delay.

II. Limitation of Compensation

According to current international conventions, some use a single standard compensation method, while others use a dual standard compensation method. The compensation methods for international freight forwarders should be the same, but in reality, they differ significantly.