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In road transport the carrier is liable for the goods themselves, from takeover to delivery, under Article 17 of the CMR Convention. A freight forwarder is liable for organising the move with due care, including the choice of carrier. A broker who merely matches the parties answers only for his own failings. After a loss, everything turns on which contract you signed.
Why the name on the truck tells you nothing
"Transport", "forwarding", "logistics": the words are used interchangeably on trailers, websites and email footers. The law looks only at the content of the obligation. A company with "transport" in its name that merely organises carriage with third-party vehicles concludes a forwarding contract. A company with "forwarding" in its name that writes "we undertake to carry the goods" takes on carrier liability. The Polish Civil Code says it openly: a forwarder that performs the carriage itself has the rights and obligations of a carrier (Article 800). English practice draws the same boundary with different words, asking whether the forwarder contracted as agent or as principal; many British forwarders trade under the BIFA Standard Trading Conditions, which spell out the role in the contract terms.
The stakes surface only after a loss. The classification decides whether your claim runs under the strict CMR regime with a per-kilogram ceiling, under fault in carrier selection, or under general contract law. It also decides which insurance responds: a carrier holds carrier liability cover, a forwarder holds freight forwarder liability cover, and the two policies answer for different events. How a forwarder actually works, from enquiry to settlement, is described in how freight forwarding works.
The carrier: custody of the goods from takeover to delivery
In international carriage the carrier's liability is set by the CMR Convention. Article 17(1): the carrier is liable for total or partial loss of the goods and for damage occurring between the time it takes over the goods and the time of delivery, as well as for delay. It is also answerable for its employees and for any other persons whose services it uses (Article 3), so subcontracting the haul does not move the liability away from the carrier you contracted. Relief comes only through the defences of Article 17(2) and (4), for example an inherent vice of the goods or circumstances the carrier could not avoid and whose consequences it could not prevent.
That liability has a ceiling: compensation for loss or damage cannot exceed 8.33 SDR per kilogram of gross weight short (Article 23(3)). For light, high-value cargo the cap can cover a fraction of the invoice, which we break into numbers in the 8.33 SDR per kilogram limit. On top of that sit short deadlines: reservations at delivery under Article 30 and the one-year limitation period of Article 32, both collected in CMR damage claims and time limits. Miss them and the strongest claim dies on procedure.
The forwarder: liable for diligence, not for every loss
A forwarder does not haul, a forwarder organises: it selects the carrier, sets the route, documents and conditions, supervises performance and, after a loss, must take the steps needed to secure its customer's claims against the carrier (Articles 794 and 798 of the Polish Civil Code). For the carriers and further forwarders it engages, it is liable only where it is at fault in their selection (Article 799). In practice that is a question of verification: did it check the carrier's licence, its liability insurance and the policy exclusions, its company records, its track record. A forwarder that selected the carrier diligently and can document it will not pay for the carrier's damage; it will, however, point you to the right defendant and the right regime.
The boundaries are statutory. For damage to a consignment in its own custody, for example during transhipment or storage, the forwarder is liable up to the ordinary value of the consignment, unless the damage resulted from wilful misconduct or gross negligence (Article 801). Claims under a forwarding contract become time-barred after one year (Article 803), so the window for a decision is shorter than in an ordinary commercial dispute. And the key rule: where the forwarder performs the carriage itself, or undertakes in the order to carry the goods, it stops being merely a forwarder and is liable as a carrier (Article 800).
The broker: the thinnest layer between you and the loss
Polish law knows no separate "brokerage contract" for the carriage of goods. An operator that only matches the parties, takes a commission and undertakes neither to carry nor to organise carriage sits outside the CMR regime and outside the forwarding provisions. For its own failings it answers under the general rules on non-performance of obligations (Article 471 of the Civil Code), and only within the scope of service it actually agreed. Formally, freight intermediation in Poland requires a licence (Article 5b(2) of the Road Transport Act), and a missing licence is the first warning sign.
The biggest risk of broker chains is not legal subtlety but practical opacity: the more links between the cargo owner and the truck, the harder it is to establish who actually carries the goods, whose driver arrived at the ramp and whose insurance responds. How an order resold down a chain ends, and how to defend against it, is shown in double brokering: freight resold down a chain.
| Role | Contract and legal basis | Liable for | Limits of liability |
|---|---|---|---|
| Carrier (international carriage) | contract of carriage, CMR Convention | the goods from takeover to delivery, delay, acts of subcontractors (Articles 3 and 17) | 8.33 SDR/kg (Article 23(3)), for delay the carriage charge (Article 23(5)) |
| Carrier (domestic carriage in Poland) | contract of carriage, Polish Transport Law | loss, shortage, damage, delay (Article 65) | consignment value determined under Article 80, for delay twice the freight (Article 83) |
| Freight forwarder | forwarding contract, Articles 794-804 Civil Code | diligent organisation, carrier selection (Article 799), consignment in its custody (Article 801) | fault in selection, ordinary value of the consignment, one-year limitation (Article 803) |
| Forwarder performing the carriage | Article 800 Civil Code | as a carrier | CMR or Transport Law limits |
| Broker (intermediary) | innominate contract, Article 471 Civil Code, licence under Article 5b(2) Road Transport Act | its own failings within the agreed service | general rules, no custody of the goods, no CMR regime |
How to tell who you actually contracted with
- Read the obligation, not the letterhead. "We undertake to carry the goods" is a contract of carriage. "We undertake to organise the carriage" is forwarding. "We will pass your enquiry to trusted carriers" is at most intermediation.
- Check the CMR note. The consignment note has boxes for the carrier and successive carriers. If a different company appears there than the one you pay the freight to, there is a forwarder or a broker in the chain, and after a loss you need to know which.
- Ask for the policy. A carrier shows carrier liability insurance, a forwarder shows forwarder liability insurance. Ask for the document and check the sum and the exclusions before the goods move, not after the loss.
- Verify the authorisations. An international carrier holds a Community licence, a Polish intermediary a freight intermediation licence, and a UK forwarder can tell you which trading conditions it contracts under. No document, no deal.
- Put the terms in writing. The scope of the forwarder's services, the nature and value of the cargo, vehicle and deadline requirements: whatever is not in the order does not exist in the dispute.
The OTSL role
OTSL acts as an international freight forwarder: we conclude a forwarding contract with a clearly described scope, select and verify carriers, watch the transport documents and reservation deadlines, and after a loss we run the claim against the carrier and its insurer. We operate between Poland, the United Kingdom, Switzerland and the rest of Europe, with warehouses in Kielce, Legnica and Milton Keynes and support for customs clearance, exhibition transport and cargo inspections. More scenarios sit in our transport risks section, and you can discuss your supply chain through the contact form.
Who is liable if goods are damaged during international transport?
Liability for damaged goods during road transport rests primarily with the carrier who took custody of the consignment, whereas a freight forwarder is held accountable for properly organising the move and selecting a suitable contractor.
Step by step
- Verify the contract type. Check whether you are signing an agreement with a carrier, a freight forwarder, or a broker.
- Review liability scope. Make sure you understand who is responsible for the goods in transit and who is liable for logistics organisation.
- Prepare required documentation. Issue accurate consignment notes and instructions before handing over your goods.
- Hand over the goods carefully. Ensure that the person taking custody signs the collection document properly.
- Handle claims correctly. Direct any loss or damage claims to the right party according to the specific contract signed.
Definitions
- Carrier: A party that takes physical custody of the goods and undertakes to transport them to the destination.
- Freight forwarder: An organiser of transport that arranges dispatch or collection and selects the appropriate carrier on your behalf.
- Broker: A middleman who merely matches the parties without taking responsibility for the carriage itself.
- CMR Convention: The international agreement governing rights and liabilities in cross-border road freight carriage.
