TT Club highlights significant changes to RHA's Conditions of Carriage
The latest version of the RHA conditions of carriage (2020) were released last year, effective 1 September. TT highlights changes to three clauses in particular: protecting carriers’ obligations if delays in transit result from the customer’s omission, clarifying the issue of liabilities for loading and unloading cargo from the vehicle, and providing a useful definition of ‘commencement of transit’ with its implications on liability in the event of damage or loss prior to that point.
“Although relatively small, these changes can have significant impact on the liabilities sustained by carriers under certain circumstances”
“Although relatively small, these changes can have significant impact on the liabilities sustained by carriers under certain circumstances,” says TT Club’s Mike Yarwood. “Since Brexit, for example, there have been a number of occasions of hauliers arriving at UK ports seeking to cross the EU border without the necessary documentation or permits. Documentary errors, potentially by the customer, cause delay, which if perishable cargoes are involved can result in extensive losses. Under clause 5 (4) of the new conditions, a carrier has the right to suspend or possibly even terminate the performance of the service, and in addition damages such as loss of business and driver’s wages could be claimed from the customer,” he explained.
TT Club and commercial law firm Hill Dickinson have worked together to outline the important clause changes that effect the customer-carrier contractual relationship. Hauliers and other stakeholders who incorporate the terms of the earlier, 2009 version are encouraged to alter their own Standard Trading Conditions (STCs) in line with the new provisions.
A further issue clarified in the 2020 conditions is connected to liabilities for loading and unloading cargo from a vehicle. Clause 4 now states that unless otherwise agreed in writing, responsibility for loading cargo onto the vehicle and the unloading of the cargo at the consignee, rests with the customer. Further, the customer is also required to indemnify the carrier from and against all and any loss, damage, death or injury that might arise during such operations.
"Clause 7 of the new conditions sees a material change to the definition of commencement of transit"
Yarwood goes on to profile another clause that has been altered, “TT has recently been active in reporting the increase in theft from warehouse premises, a consequence primarily of pandemic related backlogs and delays. This includes from loaded trailers awaiting departure. In this regard, Clause 7 of the new conditions sees a material change to the definition of commencement of transit. This is defined as after the consignment has left the premises from where the consignment is collected.”
This is of significant assistance to the carrier when no alternative secure parking facility is available en route to the destination or the driver does not have sufficient driving time to reach a secure parking location. In the spirit of security, it would now be advantageous from both a liability and a security perspective to leave the loaded trailer at the shipper’s premises until the driver’s hours allow a more seamless delivery option.
TT Club consistently advises carriers to review their STCs on a regular basis in order to maintain control over their risk profile. In this instance, the RHA have provided a valuable service in up-dating some of the clauses of these conditions of carriage, which it would be wise of carriers to adopt.
About TT Club
TT Club is the established market-leading independent provider of mutual insurance and related risk management services to the international transport and logistics industry. TT Club’s primary objective is to help make the industry safer and more secure. Founded in 1968, the Club has more than 1100 Members, spanning container owners and operators, ports and terminals, and logistics companies, working across maritime, road, rail, and air. TT Club is renowned for its high-quality service, in-depth industry knowledge and enduring Member loyalty. It retains more than 93% of its Members with a third of its entire membership having chosen to insure with the Club for 20 years or more.
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